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Contractor issue

IndianaConstruction ContractPayment Disputes

Contractor did a patio job for me. As job progressed I e-mailed him reminding him to make sure the steps complied with building codes. I did not want a problem later selling the home or a lawsuit if someone tripped etc. They finished the work and I hired a certified inspector to inspect my steps. The steps do not meet the building code. I sent a copy of the report to the contractor and asked he re-do the steps to meet code. he declined and said he would cut the amount owed by $800.00 I agreed and paid him a check stating in the memo Patio Paid in Full. Now a few weeks later the contractor wants the rest of the money ($800.00). Threatened with lawyer.

1 reply

Dec 10, 2019
If a contractor hasn't agreed to reduce their price, in writing, it may be hard to prove that they've accepted a lower price for their work. On one hand, accepting and cashing a check that's clearly been marked as final payment may well be considered an acceptance of a lower contract price. Though, if the check wasn't actually cashed, then the chances the memo line or verbal agreement is binding would diminish greatly. But, on the other hand, if the contract clearly calls for payment in excess of what was actually paid, and if there's no written statement that clarifies the price has been dropped, then a contractor may well be able to argue that they didn't, in fact, agree to that lower price. Even in a situation where the contractor ends up on the losing side, they may be able to create significant headaches and stress for their customer with potential legal claims and the potential for a mechanics lien filing. For further dicussion, this article might be valuable: Are checks with “payment in full” in memo field legally binding? Do they affect mechanics lien rights?
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