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If a home owner solicits work with no intention of making a a payment is there a criminal law for that type of fraud

New JerseyChange Orders

I am a small contractor who is working on the home of an architect who was asked prior to the signature of the contract if the structure was in tact, if the electrical was in tact, and if the plumbing was in tact; and to these questions answered yes. After starting the work it was discovered that one side of the house was falling because the first floor load bearing wall was removed to provide for a larger living room and the sill plates for each floor was cut and left unmended to accommodate a new stack pipe, and the electrical lines were gathered together and taped with no use of junction boxes or wire nuts. This additional work was not specified in the contract but review with the home owner who condoned the work be done and even help in the process. The home owner now reveals that that work was part of the work necessary to complete the scope of work in the contract and has no intention of paying for the work

1 reply

Feb 12, 2020

Generally, most payment disputes with an owner regarding payment won't end up in criminal territory. Though, if an owner has entered into an agreement in bad faith, there may be an argument for fraud. Still, an owner can't simply lie about the condition of the project site or require additional work outside the scope of the agreement and get off scot-free. When an owner has misled their contractor about the scope of work required for the job, and where they refuse to update the project specifications and/or price with change orders, a contractor could likely pursue termination of the contract. There may be several bases for this - like breach of contract, inaccurate project specifications, impossibility of performance, or something as simple as a breach of the duty of good faith. If the work is actually performed, and if the owner blatantly refuses to pay for the additional work, it will likely be much harder to collect payment for that work. Though, a claimant might be able to pursue an unjust enrichment claim against an owner for work outside of the contract. If things are getting ugly, it might be time to consult a local New Jersey construction attorney. This is especially true when dealing with a savvy owner who's familiar with construction disputes and construction law.

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