What to do if you entered into a Contractor Dispute?


I am entered into the contract. They still have not finished. Contractor asking for final payment, which is supposed to be disbursed after completion. What should I do?


Working with contractors is not an easy job. Some contractors are very clear about the documentation, while others can create a mess for you.

Usually, the issues arise in an ongoing contract. The contractor expects you to make all the payment, while you, as a buyer, need assurance first.

In such a situation, you shall try to fix the issues peacefully without a hitch. However, it is not always possible.

Solution For The Settlement of The Final Payment For an Ongoing Contract

Before reaching out to any conclusion, you shall first check your documentation.

Here, you can find a clause for liquidated damages when the contractor misses the deadline for completing the project.

You shall always have a firm grip in terms of financial leverage so that the contractor completes the project without any loose ends.

As a client, you shall make the complete payment, only when:

  • You observe a substantial completion, and
  • The contractor issues you with a Certificate of Occupancy (CO)

Also, you shall plan a walkthrough of the project, conduct a final check, share the list of loose ends, get it resolved, and then fix the finances.

Retainage amount

You can hold back 5 to 10% of the overall amount if the contractor does not satisfy the requirements of substantial completion. 

It is called the retainage amount, which adds you leverage towards the end of the project.
Seek legal advice

In case the contractor does not agree on any point and forces you to proceed with the payment without the work; you can seek legal advice.

You shall get yourself covered with a legal plan wherein you can get a solution for any legal matters without struggling to find a suitable lawyer.

All you need to do is, share your issue, and the agency will provide you with a legal advisor. You can then avail of the right advice without any hefty fees.

Final Words:

It is easy to resolve the situation with the contractor if you are aware of all the clauses.

Also, it is helpful to get legal assistance to avoid any losses.
Moreover, legal plans are pocket friendly and save your time considerably.

Learn How a Real Estate Lawyer Can Help You With A Contractor

Important: The articles available on requestlegalservice.com are not legal advice nor a replacement for a lawyer. The contents are usual information and guidance concerning different lawful issues. We make sure that these articles prove helpful to you, but we do not promise that they are suitable for your circumstance. Hence, we strictly suggest you get expert legal advice. Consult or hire an attorney in case of any uncertainty.