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How to get my money returned.

I hired a pool contractor. We agreed on a price and a start date. He is now more then 60 days past his estimated start date . He has told me several time 2 more weeks. I have decided to fire him. I have now tried for more than 30 days to get my deposit back. He told me this past Friday I would receive a payment before the weekend would end. Once again I have not herd from him. What is the law and what is my next step ?

1 reply

Nov 8, 2019

First, it's important to look to the terms of the construction contract. If there are any terms regarding the termination of the agreement, or if there are any terms regarding whether the deposit is refundable, then those terms should generally be followed. Plus, if a contractor has explicitly breached the contract by failing to meet the project schedule or by refusing to return a deposit, then recovery should be easier.

How to recover a construction down payment

With that being said, if a contractor refuses to return a downpayment that the owner is rightfully owned, the owner may need to put some pressure on their contractor if they want to get their deposit back. After all, if a contractor believes they'll be able to get away with withholding a deposit scot-free, it makes sense that they might try it. So, taking a more official step - like sending a payment demand letter - might be effective. This is particularly true if the letter includes specific legal threats that will be followed up on if payment isn't made. Sending a demand via attorney could prove to be particularly effective. If mere threats or warnings aren't enough, pursuing a claim against the contractor might do the trick. If the dispute is less than $6,000, taking the issue to Alabama small claims court might be a way to efficiently recover payment. Alternatively, it might be helpful to consult with a local Alabama attorney to see what options they might recommend. They may be more familiar with claim processes that could help to recover the downpayment - and they'll be able to take a deeper look at your contract and circumstances.

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