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Can a contractor with whom I have a signed contract stop work because I disputed a bill ?

CaliforniaChange OrdersConstruction Contract

I received a bill for about $11k for a rock clause. I challenged the bill but did NOT say I would not pay it. My contractor, said 'this is unfortunate.' I will have to stop all work on your project until be resolve this. Can he do that?

1 reply

Mar 10, 2020
If the contract states that the contractor is entitled to stop work during a dispute, then the contract will be binding - and they'll likely be able to stop work until the issue is resolved. At the end of the day, the working relationship should generally fall in line with the contract. Even where the contract doesn't specifically allow for it, a contractor stopping work will usually be one of the stronger leverage plays they've got in their arsenal. Though, walking off the job - even only temporarily - could create exposure to breach of contract liability. Further, the contractor may also be entitled to pursue a stop work notice under CA Civil Code § 8830-8848. Though, those sections will only allow for a contractor to suspend work when payment under the contract is 35+ days overdue.

Negotiating a lower price

It sounds like this is probably the same dispute from this question which was recently posted and answered on the Expert Center: Is advance notice required for work not bid? As mentioned in that answer, a contractor may have some freedom to sub out work, but they don't have carte blanche to overcharge for the new work that's needed. If it seems like they're trying to charge an unreasonable amount for the work that's being done/been done, then negotiating a lower price could be an option. If they're resistant to that idea, then getting quotes for the work from other contractors and subcontractors in the area could help to level things out. If new bids are far lower than what's being billed, that'd be helpful ammunition in a negotiation or payment dispute.

Bringing a contractor back to the job site

Finally, threatening to take legal action could help to push a contractor back to the job site. Or, threatening to terminate the contract might do the same. Further, threatening to report a contractor to the CSLB could be effective, too. Obviously, though, it's important to handle the relationship with care, especially when there's additional work to be done. Bringing in another contractor to finish the work will usually be expensive compared to working out issues. And, if a legal dispute breaks out, that'd be a drain too. Finally, if mechanics liens come into the equation, then an owner can really feel the sting since their property title would be on the line.
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