Legal Disclaimer: This article provides general information for educational purposes only and does not constitute legal advice. Consult a licensed attorney for advice specific to your situation.
You hired a contractor. Maybe they took your deposit and disappeared. Maybe they did work so shoddy you need someone else to fix it. Maybe they just stopped showing up halfway through.
Before you sue, send a demand letter. It often works, it's free, and it strengthens your case if you do end up in court.
In This Guide
Common Contractor Disputes
The Vanishing Act
Contractor takes your deposit and disappears. No work started, no response to calls. This is the easiest to win — you have a clear paper trail and got nothing.
The Walkaway
Contractor started the job but stopped partway through. Maybe they got a bigger job, maybe they underestimated the work, maybe they just flaked. You've paid for work that isn't done.
The Botched Job
Work was completed but done so poorly it needs to be fixed or redone. Leaking roof, crooked cabinets, unpermitted electrical. You're owed repair costs.
The Overcharge
Contractor charged more than the contract price without authorization. Added "extras" without approval. Inflated material costs.
The Damage
Contractor damaged your property during the work. Broke a window, scratched floors, backed over your mailbox with the truck.
What to Demand: Money, Work, or Both?
Option 1: Demand Completion of Work
Use this if:
- The contractor is otherwise capable but just needs pressure
- You'd rather have them finish than hire someone new
- The work is specialized and finding a replacement would be difficult
Be specific: "Complete the kitchen renovation per the contract, including installation of countertops, backsplash, and cabinet hardware, within 21 days."
Option 2: Demand a Refund
Use this if:
- You've lost confidence in the contractor's ability or reliability
- Work was so poor it needs to be redone by someone else
- Contractor has shown they won't/can't complete the job
Calculate: Deposit paid minus fair value of work actually completed = refund owed.
Option 3: Demand Cost of Completion
Use this if:
- You've already hired someone else to finish
- The cost to complete exceeded what the original contractor quoted
Calculate: What it cost you to finish − what you would have paid original contractor to finish = damages owed.
Option 4: Demand Cost of Repairs
Use this if:
- Work was completed but done improperly
- You need to pay someone to fix their mistakes
Get repair estimates from other contractors before writing your demand.
What to Include in Your Demand Letter
1. Contract Details
- Date of contract
- Description of work to be performed
- Contract price and payment schedule
- Scheduled completion date
2. Payment History
- Amounts paid and dates
- Payment method (check numbers, card transactions)
- Total paid to date
3. What Went Wrong
- Chronological account of the problems
- Specific defects or incomplete work
- Your attempts to get resolution
- Contractor's responses (or lack thereof)
4. Your Damages
- Money paid for work not performed
- Cost to complete the job (with estimates)
- Cost to repair defective work
- Additional costs (permits, inspections, temporary housing)
5. Your Demand
- Specific dollar amount OR specific work to be completed
- Deadline (14-21 days is typical)
- Warning of legal action if not resolved
6. Documentation
List everything you're enclosing:
- Copy of the contract
- Payment receipts/canceled checks
- Photos of incomplete/defective work
- Repair estimates from other contractors
- Communications (texts, emails)
- Permit/inspection records
Contractor Demand Letter Template
[Your Name]
[Your Address]
[City, State ZIP]
[Date]
SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
[Contractor Name/Business Name]
[Address]
[City, State ZIP]
Re: DEMAND FOR [REFUND/COMPLETION/REPAIR]
Project Address: [ADDRESS]
Contract Date: [DATE]
Dear [Contractor Name]:
This letter constitutes a formal demand for [refund of payments made / completion of contracted work / payment of repair costs] arising from your breach of our contract dated [DATE] for [describe project — e.g., "renovation of the kitchen at the above address"].
Contract Summary
On [DATE], we entered into a written contract for you to [describe the work — e.g., "renovate the kitchen, including removal of existing cabinets, installation of new cabinets and countertops, backsplash installation, and associated plumbing and electrical work"]. The contract price was $[AMOUNT], with the following payment schedule:
- Deposit: $[AMOUNT] paid on [DATE]
- Progress payment: $[AMOUNT] paid on [DATE]
- [Additional payments as applicable]
Total paid to date: $[TOTAL]
Work was to be completed by [DATE].
[For unfinished work:]
Despite receiving $[AMOUNT] in payments, you have failed to complete the following work:
- [List specific incomplete items — e.g., "Countertops not installed"]
- [Continue listing]
You last appeared at the job site on [DATE] and have not returned despite my attempts to contact you on [list dates of calls, texts, emails].
[For defective work:]
The work you performed is defective and does not meet industry standards. Specific defects include:
- [List specific defects — e.g., "Cabinet doors do not close properly"]
- ["Countertop seams are visible and uneven"]
- [Continue listing with specifics]
I have obtained estimates to repair these defects from [NUMBER] licensed contractors. The average repair cost is $[AMOUNT]. Copies of these estimates are enclosed.
Damages
| Payments for work not performed | $[AMOUNT] |
| Cost to complete/repair (per estimates) | $[AMOUNT] |
| Additional costs incurred | $[AMOUNT] |
| TOTAL DAMAGES | $[TOTAL] |
Demand
[For refund:]
I demand a refund in the amount of $[AMOUNT] representing payments made for work not performed, plus $[AMOUNT] for costs to hire a replacement contractor.
[For completion:]
I demand that you complete the following work within fourteen (14) days of the date of this letter:
- [List specific work to be completed]
If you do not [refund my payment / complete the work / pay for repairs] within the deadline, I will:
- File a complaint with the [STATE] Contractors State License Board
- File a claim in [small claims court / superior court]
- Report this matter to [local consumer protection agency]
- Leave detailed reviews on Yelp, Google, and the Better Business Bureau
I am prepared to resolve this matter without litigation if you act promptly and in good faith. Please contact me within five (5) days to discuss resolution.
Sincerely,
[Your Signature]
[Your Printed Name]
[Phone Number]
[Email Address]
Enclosures:
- Copy of contract
- Payment receipts
- Photos of incomplete/defective work
- Repair/completion estimates
- Communication log
The Licensing Leverage: Your Secret Weapon
Here's something most people don't know: an unlicensed contractor often can't collect payment — and may owe you a refund even for work they completed.
Check Their License
Before sending your demand letter, verify the contractor's license status:
- California: cslb.ca.gov
- Texas: license.state.tx.us (limited licensing by trade)
- Florida: myfloridalicense.com
- New York: nyc.gov/consumers (NYC) / varies by county elsewhere
- Most states: Search "[state] contractor license lookup"
If They're Unlicensed
In many states, an unlicensed contractor:
- Cannot sue to collect payment
- May owe you a full refund of all amounts paid
- Faces criminal penalties and fines
For example, California Business & Professions Code § 7031 says an unlicensed contractor can't maintain an action to collect compensation — AND the homeowner can sue to recover all amounts paid.
Add this to your letter if they're unlicensed:
"I have confirmed that you [do not hold / did not hold at the time of our contract] a valid contractor's license in [STATE]. Under [STATE] law, an unlicensed contractor cannot maintain an action to collect compensation and may be liable to return all payments received. I am entitled to a full refund of all amounts paid regardless of the value of any work performed."
What Happens After You Send Your Demand Letter
They Pay or Complete the Work
Success! Many contractors respond to a formal demand letter — especially one that mentions licensing complaints and public reviews. Get any agreement in writing.
They Offer a Partial Settlement
Evaluate whether the offer is reasonable. If the contractor offers $3,000 and you're owed $5,000, is it worth months in court to get the other $2,000? Sometimes yes, sometimes no.
They Dispute Your Claims
They may argue the work was done properly, or that you approved changes. Gather your evidence and prepare for court if needed.
They Ignore You
If they don't respond within your deadline, proceed with filing in small claims court. Their failure to respond to a reasonable demand letter helps your case.
Taking It to Small Claims Court
If the demand letter doesn't work, small claims court is your next step. In most states, you can sue for:
| State | Small Claims Limit |
|---|---|
| California | $12,500 |
| Texas | $20,000 |
| Florida | $8,000 |
| New York | $10,000 |
| Illinois | $10,000 |
Bring to court:
- Your demand letter and proof it was sent
- The contract
- Payment records
- Photos of incomplete/defective work
- Estimates from other contractors
- Communications showing you tried to resolve it
Ready to Send Your Contractor Demand Letter?
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Start Your Demand LetterKey Takeaways
- Check the contractor's license before sending — unlicensed contractors may owe you a full refund
- Decide whether you want money back, work completed, or repair costs before writing
- Get repair/completion estimates from other contractors to document your damages
- Send via certified mail and keep copies of everything
- Mention licensing board complaints and online reviews — contractors care about their reputation
- Small claims court is your backup if the demand letter doesn't work
Related Articles
- How to Write a Demand Letter: Complete Guide
- Demand Letters and Small Claims Court
- Demand Letter for Money Owed
- What Happens After You Send a Demand Letter
Free Tools: Try our Damages Calculator, Dispute Diagnostic Quiz, or Statute of Limitations Lookup.