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How do I dispute a contract with my contractor?

I've been working with a contractor on a T&M contract basis for a remodel project at my home in Walnut Creek, CA. Before starting the project and agreeing to T&M we asked the contractor to give us an estimate of timeline and total labor cost based on our scope of work. The contracotr indicated 8 weeks and 45-55k labor in an email. We're 5 weeks into our project and already at 48k labor (750 hours billed) and I don't see us finishing our scope anywhere near the communicated timeline or budget. I've already been paying a weekly accrual to the amount mentioned above, what are my rights to dispute what is happening?

1 reply

Mar 5, 2020

First, keep in mind that California has strict requirements about home improvement contracts. And, if a contractor is performing work on your residence without a proper contract in place, then they may find themselves in trouble. Further, if the contract was not done in proper form, that might be a red flag - licensed contractors should be well aware of the relevant rules and regulations. So, a license search may be in order to ensure they're properly licensed. If they aren't, then an owner could be able to recoup all amounts previously paid to the contractor. If a contractor's work is on pace far exceed the estimated time frame and cost, it's probably a good idea to try and clear the air before things get out of control. Sitting down with the contractor and coming up with a revised project schedule and budget might be a good idea. Maybe there were unexpected challenges, maybe their estimates were too conservative, etc. But, understanding exactly why the project has gone over budget and behind schedule will be important when deciding how to fix the issue. Exploring options like supplementing their work with other contractors or subcontractors, accelerating the job, or some other solution may be in order. But, terminating the contract or instigating a larger dispute should likely be avoided, if possible - bringing in a second contractor to finish the work of another contractor will usually be even more expensive. If talking out the issue isn't going anywhere, then it may be wise to consult a local California construction attorney to see what can be done about the contract. Depending on the specific circumstances and the contract, it may be possible to get out of the agreement relatively easily to try and bring someone else in to finish the work in a more acceptable manner.

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