Use this contractor disputes guide to build a clear demand letter for Raleigh.
Resolving Contractor Disputes in Raleigh: Your Guide to Demanding Quality Work and Recovering Damages
Home improvement and construction projects should enhance your property and quality of life, but when contractors fail to perform as promised, the experience can become a frustrating and expensive nightmare. Whether you're dealing with a Raleigh contractor who abandoned a half-finished project, performed substandard work, significantly exceeded quoted costs, or simply disappeared with your deposit, North Carolina law provides strong remedies to help you recover your losses and hold contractors accountable.
Raleigh's booming housing market and continuous development in the Research Triangle area have attracted both highly professional contractors and, unfortunately, some less scrupulous operators. The construction and renovation industry serves homeowners across diverse neighborhoods from historic Oakwood to new developments in North Raleigh, and disputes can arise in any setting. Understanding your rights as a homeowner and the legal framework governing contractor relationships is essential to protecting yourself.
A well-crafted demand letter is often the most effective first step in resolving contractor disputes. Many contractors prefer to resolve complaints rather than face negative reviews, license complaints, and lawsuits. This guide will teach you how to document contractor failures, calculate your damages, write an effective demand letter citing North Carolina law, and pursue your claim through the State Licensing Board or Wake County courts if the contractor refuses to make things right.
North Carolina requires many types of contractors to be licensed, and the State Licensing Board for General Contractors has authority to investigate complaints and discipline contractors who violate standards. Combined with common law contract principles and the powerful North Carolina Unfair and Deceptive Trade Practices Act, homeowners have meaningful legal recourse when contractors fail to fulfill their obligations.
This comprehensive resource covers every aspect of contractor disputes in Raleigh, from understanding the legal protections available to you through pursuing claims in Wake County's court system. Whether your dispute involves thousands of dollars in unfinished work or quality issues that affect your home's value and safety, the strategies outlined here will help you pursue the resolution you deserve.
North Carolina Laws Protecting Homeowners in Contractor Disputes
North Carolina provides multiple layers of legal protection for homeowners dealing with contractor disputes. Understanding these protections helps you assert your rights effectively and choose the best strategy for your situation.
Contractor Licensing Requirements
North Carolina requires licensing for contractors performing work over certain thresholds. Under N.C. Gen. Stat. 87-1, any person or firm engaging in general contracting work where the cost of the undertaking is $30,000 or more must be licensed by the North Carolina Licensing Board for General Contractors. This includes new construction, additions, alterations, and repairs. Separate licensing requirements apply to electrical contractors (licensed by the State Board of Examiners of Electrical Contractors), plumbing and mechanical contractors (licensed by the State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors), and other specialty trades.
Operating without a required license is itself a violation that can be reported to the appropriate licensing board. Unlicensed contractors may face penalties, and contracts with unlicensed contractors may be unenforceable against the homeowner, meaning an unlicensed contractor may not be able to sue you to collect payment for work performed.
Contract Law Principles
Most contractor disputes involve breach of contract. Under North Carolina common law, when a contractor fails to complete work as promised, performs work that doesn't meet contract specifications, abandons a project before completion, or materially deviates from agreed terms, they have breached the contract. Homeowners can recover damages for breach, which typically include the cost to complete or correct the work, diminution in property value if defects cannot be corrected, additional costs incurred due to the breach (temporary housing, storage, etc.), and in some cases, compensation for inconvenience and loss of use.
Implied Warranties
North Carolina recognizes implied warranties in residential construction. In new home construction, builders impliedly warrant that the home is constructed in a workmanlike manner, free from material defects, and suitable for habitation. These implied warranties apply even without express contract terms and provide grounds for claims when construction is defective.
Unfair and Deceptive Trade Practices Act
N.C. Gen. Stat. 75-1.1 prohibits unfair or deceptive acts or practices in commerce. Contractor conduct that may violate this statute includes misrepresenting qualifications or licensing status, providing false estimates with intent to increase prices later, abandoning projects after collecting deposits, making material misrepresentations about work quality or completion, and deceptive advertising or sales practices. If you prove a violation of the UDTPA, you can recover treble (triple) damages under N.C. Gen. Stat. 75-16, plus attorney's fees under N.C. Gen. Stat. 75-16.1. This powerful remedy significantly increases your leverage in disputes.
Mechanics' Liens and Payment Disputes
Under N.C. Gen. Stat. 44A-7 through 44A-23, contractors, subcontractors, and suppliers can file mechanics' liens against property for unpaid work. If you're in a dispute where you've withheld payment due to defective work, be aware the contractor may file a lien. Understanding lien law helps you navigate payment disputes effectively.
Home Improvement Regulations
The North Carolina Home Inspector Licensure Act and related regulations provide some consumer protections for home inspections that may be relevant to construction quality disputes. Additionally, building code enforcement by local authorities can address safety-related construction defects.
City of Raleigh Building Permits and Inspections
Construction work in Raleigh typically requires permits from the City of Raleigh Inspections Department. If a contractor failed to obtain required permits, or if work fails to pass required inspections, this creates additional grounds for complaint. Unpermitted work may need to be removed and redone, adding to your damages.
Small Claims and Court Jurisdiction
Wake County Small Claims Court handles disputes up to $10,000, which covers many contractor disputes. For larger claims, you'll file in District Court (up to $25,000) or Superior Court (over $25,000). Small claims court provides a simpler process suitable for self-representation, while larger claims may benefit from attorney involvement.
Writing an Effective Contractor Dispute Demand Letter in Raleigh
A well-crafted demand letter often resolves contractor disputes without court involvement. Contractors who depend on their reputation and license typically prefer resolving complaints to facing formal actions. Follow these steps to create an effective demand.
Before writing, gather complete documentation of what was promised. This includes your written contract or proposal, any change orders or amendments, written communications about scope and specifications, advertising materials or representations that induced the contract, permits and approved plans, and any warranties provided. If you have a written contract, identify each specific provision the contractor has violated.
Compile comprehensive evidence of how the contractor failed to perform. Photograph all defective or incomplete work from multiple angles. Obtain written assessments from other licensed contractors identifying defects and estimating repair costs. Document any code violations or failed inspections. Create a detailed list comparing what was promised versus what was delivered. Note any safety concerns.
Determine exactly what the contractor's failures have cost you. Categories of damages include cost to complete work the contractor left unfinished (get written estimates from other contractors), cost to correct defective work (including removal of substandard work and proper replacement), amounts paid to the contractor for work not performed or performed deficiently, additional costs incurred due to contractor failure (temporary housing, storage, alternative arrangements), permit reapplication fees if work was improperly permitted, and any diminution in property value from uncorrectable defects.
Verify the contractor's licensing through the NC Licensing Board for General Contractors website (nclbgc.org) or by calling (919) 571-4183. Note the license number, status, and any disciplinary history. If the contractor was unlicensed for work requiring a license, this is itself a violation and may affect their ability to enforce the contract against you.
Use a business letter format with your contact information, the date, and the contractor's full business name and address. Include a clear subject line identifying the project address and nature of the dispute. Professional formatting signals you are serious.
Begin by identifying yourself as the homeowner at the project address and establishing the contractual relationship. State when you entered into the contract, the nature of the work, the contract price, and amounts already paid. Reference the written contract by date if applicable.
Present each failure systematically. For each issue, describe what was promised (contract terms, specifications, representations), what was actually delivered (or not delivered), how this deviates from the contract, and the resulting damage. Reference attached photographs and expert assessments. Be factual and specific.
Reference the legal principles supporting your claim. For breach of contract, explain that the contractor failed to perform according to contract terms. For deceptive practices, cite N.C. Gen. Stat. 75-1.1 and explain how the contractor's conduct was unfair or deceptive. Note the potential for treble damages under N.C. Gen. Stat. 75-16. If the contractor was unlicensed, reference N.C. Gen. Stat. 87-1.
State exactly what resolution you require. Options include demanding completion of work to contract specifications within a specific timeframe, payment of your damages to allow you to hire another contractor to complete or correct work, or a combination of completion of some items and payment for others. Be specific about amounts and deadlines.
Provide a reasonable deadline for response. Two to three weeks (14-21 days) is typical for contractor demand letters. Shorter deadlines may be appropriate if the project is causing ongoing problems or safety concerns.
Inform the contractor of what you will do if they don't respond satisfactorily. Options include filing a complaint with the NC Licensing Board for General Contractors, filing suit in Wake County courts, pursuing treble damages under the UDTPA, and sharing your experience through reviews and consumer protection organizations. Be prepared to follow through on stated consequences.
End professionally, indicating you prefer to resolve this matter without formal proceedings but reserve all legal rights. Note your expectation of a prompt written response.
Send via USPS Certified Mail with Return Receipt Requested. Also send via email if you have the contractor's email address. Keep copies of everything sent and all delivery confirmations.
Building Your Case: Essential Evidence for Contractor Disputes
Strong documentation is critical for prevailing in contractor disputes. Gather and preserve the following categories of evidence to support your demand letter and any formal proceedings.
Contract Documents
Your contract establishes what was promised. Keep the original signed contract or proposal, all attachments, specifications, and plans referenced in the contract, any change orders or amendments (signed by both parties), written communications agreeing to modifications, and the contractor's license information as provided. If you only have verbal agreements, document what was discussed and when, though written contracts are always preferable.
Payment Records
Document all payments made. Keep copies of checks (front and back after cashing), credit card statements showing payments, receipts provided by the contractor, bank records of transfers, and any payment schedules or draw requests. Calculate the total amount paid versus the contract price. If you paid deposits for work not performed, these become damages.
Photographic Evidence
Visual documentation is crucial for proving construction defects. Take photos throughout the project showing work progression. Photograph all defective or incomplete work from multiple angles. Include wide shots for context and close-ups showing specific defects. Photograph areas that should have been worked on but weren't. Use a ruler or other object to show scale of defects. Date-stamp photos or maintain a log of when each was taken.
Expert Assessments
Other licensed contractors can provide opinions about the quality of work and cost to repair. Obtain written estimates from licensed contractors for completing or correcting work. Ask for written opinions identifying code violations and workmanship defects. Get assessments of whether work meets industry standards. Expert opinions significantly strengthen your case in court.
Communication Records
Preserve all communications with the contractor. Save emails, text messages, and letters. For phone calls, write detailed notes immediately afterward including date, time, and what was discussed. Keep records of unreturned calls and messages. Document any excuses or promises the contractor made. These records show your attempts to resolve the issue and the contractor's responses.
Permit and Inspection Records
Obtain records from the City of Raleigh Inspections Department. Request copies of permit applications and approved permits. Get inspection results, including any failed inspections. Note any required inspections that were never scheduled. Unpermitted or improperly permitted work adds to your damages and demonstrates contractor negligence.
Building Plans and Specifications
If architectural plans or specifications were part of your project, keep copies showing what was supposed to be built. Mark up plans to show deviations from approved designs. Note any substituted materials or methods.
Before and After Photos
If you have photos of the property before work began, these establish baseline conditions. Photos of completed areas show the contractor's work quality. Before-and-after comparisons can be powerful evidence of what changed and whether it matches what was promised.
Damage Calculations
Create detailed calculations of your damages. List each defect or incomplete item and the estimated cost to correct. Include quotes from other contractors for completion or repair. Add consequential damages like temporary housing, storage, or alternative arrangements. Keep receipts for all related expenses. Total your damages clearly.
Organization
Create organized files with all evidence arranged by category and date. Make copies and store originals safely. Create an index or timeline of the project showing what happened when. This organization helps you present your case clearly in demand letters, licensing board complaints, or court proceedings.
Critical Deadlines for Contractor Dispute Claims in North Carolina
Understanding and meeting legal deadlines is essential for protecting your rights in contractor disputes. Missing limitations periods can bar your claims regardless of merit.
Statute of Limitations for Contract Claims
North Carolina's statute of limitations for breach of written contract is three years from when the breach occurred, per N.C. Gen. Stat. 1-52. For oral contracts, the limitation is also three years. The breach typically occurs when the contractor fails to perform as promised, which might be when they abandon the project, when you discover defective work, or when the project should have been completed.
Statute of Repose for Construction Defects
N.C. Gen. Stat. 1-50(a)(5) establishes a six-year statute of repose for claims arising from defective construction. This means claims must be brought within six years of the later of the specific last act giving rise to the claim, or substantial completion of the improvement. This outer limit applies even if you didn't discover the defect until later.
Latent Defect Discovery Rule
For latent defects (hidden defects not discoverable through reasonable inspection), the statute of limitations may be tolled until you discover or should have discovered the defect. However, the statute of repose still provides an outer limit of six years from substantial completion.
Limitations for UDTPA Claims
Claims under the Unfair and Deceptive Trade Practices Act must be brought within four years of when the cause of action accrued, under N.C. Gen. Stat. 75-16.2. This may provide additional time for some contractor fraud claims.
Licensing Board Complaint Timing
The NC Licensing Board for General Contractors accepts complaints about contractor conduct. While there's no strict deadline, complaints filed promptly are more effective. The Board investigates recent conduct more readily than old complaints. File licensing complaints as part of your overall strategy for addressing contractor problems.
Demand Letter Response Period
Give contractors reasonable time to respond to demand letters. Two to three weeks (14-21 days) is typical. For ongoing safety issues or time-sensitive situations, shorter periods may be appropriate. If the contractor is still actively working on the project, demand letters may specify shorter timeframes for corrective action.
Court Filing Considerations
If you need to file in court, plan ahead. Wake County Small Claims Court cases typically take 4-8 weeks from filing to hearing. District and Superior Court cases take longer. File well before limitations deadlines expire. Consider filing early if the contractor shows signs of financial distress or may become unavailable.
Appeal Deadlines
Small claims court judgments can be appealed within 10 days for a new trial in District Court. This deadline is strict. Be prepared either to appeal or to enforce your judgment promptly.
Mechanics' Lien Deadlines
If you're in a payment dispute where you've withheld payment for defective work, be aware that contractors and subcontractors must file liens within specific timeframes (generally 120 days after last furnishing labor or materials under N.C. Gen. Stat. 44A-12). Understanding these deadlines helps you evaluate lien risks.
Typical Dispute Timeline
A well-managed contractor dispute typically progresses: immediate documentation when problems are identified, demand letter within 2-4 weeks of identifying contractor failures, contractor response deadline 14-21 days after demand, licensing board complaint if contractor is unresponsive, court filing if other remedies fail. Throughout, continue documenting ongoing problems and costs.
Avoiding Common Mistakes in Raleigh Contractor Disputes
Many homeowners undermine their contractor claims through avoidable errors. Learning from these common mistakes helps you pursue your claim effectively.
Not Getting Everything in Writing
The most damaging mistake is failing to have a written contract clearly specifying scope, price, materials, timeline, and payment terms. Verbal agreements are difficult to prove. Even after a project starts, get change orders in writing. If you're currently in a project without adequate written documentation, create written confirmation of any new agreements.
Paying Too Much Too Soon
Paying large deposits or payments ahead of work completion gives contractors leverage and reduces your recourse if problems arise. Payment should follow work completion, not precede it. For projects requiring deposits, limit initial payments to a reasonable percentage (10-30%) and tie remaining payments to completion milestones. Never make final payment before final inspection and approval.
Not Verifying Contractor Licensing
Hiring unlicensed contractors for work requiring a license creates problems. Unlicensed contractors may produce lower-quality work, carry no insurance, and offer no recourse through licensing boards. Always verify licensing before hiring through the appropriate state board. Keep records of license verification.
Failing to Document Throughout the Project
Many homeowners only start documenting after problems arise, losing evidence of what went wrong. Photograph work regularly throughout projects. Keep a project journal noting daily activities. Save all communications. This documentation proves the timeline of events and conditions at each stage.
Accepting Substandard Work to Avoid Conflict
Some homeowners approve work or make payments despite reservations to maintain a good relationship with the contractor. Don't sign off on work you're not satisfied with. Don't make payments for incomplete or defective work. Addressing concerns immediately is easier than trying to recover damages later.
Making Final Payment Before Completion
Paying in full before the project is truly complete eliminates your leverage. Withhold final payment until all work is complete, punch list items are addressed, final inspections pass, and you're satisfied with the result. Final payment should be the contractor's incentive to finish properly.
Not Getting Completion Estimates Before Demanding Damages
Before calculating what you're owed, get estimates from other licensed contractors for completing or correcting the work. Unsupported damage claims are less effective. Documented repair estimates from licensed professionals strengthen both demand letters and court claims.
Threatening Without Following Through
If you threaten to file licensing complaints, lawsuits, or negative reviews but never follow through, contractors learn your threats are empty. Only threaten actions you're prepared to take, and take them if your demands aren't met.
Waiting Too Long to Act
Statute of limitations and repose periods limit how long you can wait to pursue claims. Contractors may become unavailable, evidence deteriorates, and memories fade. Act promptly when contractor problems arise.
Not Considering the Contractor's Financial Situation
Before investing significant time and money in litigation, consider whether the contractor has assets to pay a judgment. Some contractors are judgment-proof, having no collectible assets. Research the contractor's business situation before deciding how aggressively to pursue formal claims.
Doing Business with Contractors Who Won't Provide References
Before hiring, check references, online reviews, licensing status, and complaint history. Contractors who won't provide references may have something to hide. Due diligence before hiring prevents disputes.
Not Consulting Professionals When Needed
Complex disputes involving significant money, potential construction defect litigation, or builders who are fighting back may require professional help. Attorneys experienced in construction disputes, expert witnesses, and licensed inspectors can strengthen your case. Don't go it alone for high-stakes disputes.
Frequently Asked Questions: Contractor Disputes in Raleigh
It depends on the type and value of work. Under N.C. Gen. Stat. 87-1, general contractors must be licensed by the NC Licensing Board for General Contractors if the project cost is $30,000 or more. Electrical contractors need licenses from the State Board of Examiners of Electrical Contractors regardless of project size. Plumbing and HVAC contractors need licenses from the State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors. Always verify licensing through the appropriate board before hiring. Unlicensed contractors performing work requiring licensure may face penalties and may not be able to enforce contracts against you.
You can typically recover the cost to correct or complete the defective work, which may include the cost of removing substandard work, materials and labor for proper completion, and any additional expenses caused by the defect. You may also recover amounts you paid for work not properly performed, consequential damages like temporary housing or storage costs, and diminution in property value if defects cannot be fully corrected. If the contractor engaged in unfair or deceptive practices under N.C. Gen. Stat. 75-1.1, you may recover treble (triple) damages plus attorney's fees.
For general contractors, file complaints with the NC Licensing Board for General Contractors at nclbgc.org or by calling (919) 571-4183. The Board is located at 5400 Creedmoor Road, Raleigh, NC 27612. For electrical contractors, contact the State Board of Examiners of Electrical Contractors at (919) 733-9042. For plumbing and HVAC contractors, contact the State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors at (919) 875-3612. Complaints should include your contract, evidence of defects, and documentation of your attempts to resolve the issue.
Generally, yes, you can withhold payment for work that doesn't meet contract specifications or industry standards. However, be prepared for the contractor to dispute this and potentially file a mechanics' lien against your property. Document the defects thoroughly before withholding payment. Consider having another licensed contractor assess the work and provide a written opinion. Communicate in writing to the contractor explaining why you're withholding payment and what corrections are required before you'll pay.
Wake County Small Claims Court handles cases up to $10,000. This limit covers many contractor disputes for partial projects, repair costs, or deposits. For claims exceeding $10,000, you'll need to file in District Court (up to $25,000) or Superior Court (over $25,000). You can choose to reduce your claim to $10,000 to stay in small claims court, which is faster and more accessible. Small claims court is located at the Wake County Justice Center, 316 Fayetteville Street, Raleigh, NC 27601.
Project abandonment is breach of contract and may constitute unfair or deceptive practices under N.C. Gen. Stat. 75-1.1. Document the state of the project when abandoned. Calculate damages including the cost to hire another contractor to complete the work minus any amounts you would have owed the original contractor. Recover any deposits paid for work not performed. File complaints with the licensing board. Consider filing suit for damages, potentially including treble damages if the abandonment involved deceptive conduct like collecting payment with intent not to complete work.
Yes, you can sue an unlicensed contractor for breach of contract and other claims. In fact, you may have additional claims because operating without a required license may itself be evidence of negligence or violation of consumer protection laws. Unlicensed contractors cannot use their own unlicensed status as a defense to avoid paying damages. Additionally, unlicensed contractors may not be able to enforce contracts against you to collect payment, which gives you leverage in disputes.
Document defects with detailed photographs showing the problems. Obtain written opinions from other licensed contractors identifying defects and estimating repair costs. Request inspection records from the City of Raleigh showing any failed inspections. Compare the work to contract specifications and applicable building codes. Expert opinions from licensed professionals are particularly persuasive in court. Document any safety concerns. Keep records of any communications where the contractor admitted problems or promised corrections.
What to Expect: Resolving Contractor Disputes in Raleigh
Understanding realistic expectations helps you make informed decisions throughout your contractor dispute. Knowing typical outcomes helps you evaluate settlement offers and decide when to pursue formal claims.
Many contractor disputes resolve after demand letters are sent. Contractors who depend on their reputation and license typically prefer settling to facing licensing board complaints, lawsuits, and negative reviews. Some construction problems result from miscommunication rather than bad faith, and once contractors understand homeowner concerns, they may offer reasonable solutions.
Typical settlement outcomes include contractor completing or correcting defective work, partial or full refund of payments for work not properly performed, contractor paying for another contractor to complete or correct work, and some combination of these remedies. Settlements often involve negotiation; be prepared to discuss what resolution is acceptable to you.
The strength of your evidence significantly affects outcomes. Documented defects with photographs, expert assessments, and failed inspection records demonstrate your claims convincingly. Contractors are more likely to settle when they see organized, professional documentation of their failures.
The contractor's licensing status matters. Licensed contractors risk license sanctions if they don't resolve valid complaints. Licensing boards can suspend or revoke licenses, which ends the contractor's ability to work. This leverage encourages licensed contractors to settle. Unlicensed contractors, while still liable, lack this regulatory pressure.
For disputes requiring licensing board involvement, the NC Licensing Board for General Contractors investigates complaints and can order remediation, impose fines, suspend or revoke licenses. Board proceedings typically take several months. The Board focuses on licensing violations and contractor competence rather than damages, so you may still need court action to recover money.
For disputes proceeding to court, Wake County Small Claims Court provides a relatively quick and accessible forum for claims up to $10,000. Homeowners with strong documentation often prevail. Courts can order damages including the cost to complete or correct work, plus court costs. Larger claims in District or Superior Court take longer and may benefit from attorney representation.
Be prepared for some contractors who won't respond or negotiate. Some contractors have financial problems preventing them from making corrections or paying damages. Others may be judgment-proof. Research the contractor's situation before investing heavily in litigation. However, licensing board complaints and court judgments create public records that warn future homeowners.
Timelines vary considerably. Cooperative contractors may resolve disputes within weeks. Contested cases involving court action typically take 3-6 months for small claims, longer for higher courts. Complex construction defect cases involving experts and significant damages may take a year or more.
Raleigh and Wake County Contractor Dispute Resources
Raleigh homeowners have access to various resources for assistance with contractor disputes. Here are key contacts and organizations.
NC Licensing Board for General Contractors
The state agency licensing and regulating general contractors. Handles complaints about licensed contractors and unlicensed work. Located at 5400 Creedmoor Road, Raleigh, NC 27612. Phone: (919) 571-4183. Website: nclbgc.org. Verify contractor licenses online before hiring or when preparing complaints.
State Board of Examiners of Electrical Contractors
Licenses electrical contractors in North Carolina. Phone: (919) 733-9042. Website: ncbeec.org. File complaints about electrical work issues.
State Board of Examiners of Plumbing, Heating and Fire Sprinkler Contractors
Licenses plumbing and HVAC contractors. Phone: (919) 875-3612. Website: nclicensing.org. File complaints about plumbing and mechanical work.
City of Raleigh Inspections Department
Issues building permits and conducts inspections. Can provide inspection records and information about permit requirements. Address: 222 West Hargett Street, Raleigh, NC 27601. Phone: (919) 996-2489 (permits), (919) 996-4600 (inspections). Report unpermitted work and request records of inspections.
Wake County Small Claims Court
Handles contractor disputes up to $10,000. Located at the Wake County Justice Center, 316 Fayetteville Street, Raleigh, NC 27601. Filing fees are approximately $96-$146 depending on claim amount. Phone: (919) 792-4100.
North Carolina Attorney General's Consumer Protection Division
Handles complaints about deceptive business practices including contractor fraud. May investigate patterns of complaints. File complaints at ncdoj.gov or call 1-877-5-NO-SCAM (1-877-566-7226).
Better Business Bureau of Eastern NC
Accepts complaints and maintains reliability reports on contractors. Many contractors respond to BBB complaints to protect their rating. Website: bbb.org.
NC Bar Association Lawyer Referral Service
Connects homeowners with construction law attorneys. Phone: (919) 677-8574. Website: ncbar.org. Useful for complex disputes involving significant damages.
Legal Aid of North Carolina
Provides free legal services to qualifying low-income residents. May assist with consumer protection matters including contractor disputes. Apply at legalaidnc.org or call 1-866-219-5262.
NC Secretary of State
Business search at sosnc.gov helps verify contractor business registration and find registered agent information for service of legal documents.
The Contractor Checkmate
Contract is King
Written agreement? Good. Verbal? Tougher, but texts and emails can help.
Document the Damage
Photos, videos, expert opinions. Every flaw is evidence.
Money Trail Matters
Payments, invoices, change orders… track every dollar.
The Contractor's Legal Nightmare
Many states require contractors to be licensed, and there can be serious penalties for unlicensed work or abandoning a project.
North Carolina Contractor Disputes Laws
Applicable Laws
- North Carolina General Contractors License
- NCGS § 87
Small Claims Limit
$10,000
Consumer Protection Agency
NC Licensing Board for General Contractors
Contractor Combat FAQ
When should I send a demand letter?
After reasonable attempts to resolve the issue directly fail. Give them a chance to fix problems, but don't wait indefinitely.
What if they're unlicensed?
That could be a major advantage. Many states void contracts with unlicensed contractors or allow full refund of payments made.
Can I withhold final payment for incomplete work?
Generally yes, especially if there's a written contract. Document the incomplete items and the amount you're withholding.
What if they filed a mechanic's lien?
You may still have claims against them. Dispute the lien if work wasn't completed satisfactorily. Consider consulting an attorney.
Should I get repair estimates from other contractors?
Yes. Independent estimates document the cost to fix problems and show what proper work should cost.
What about permits they never got?
Unpermitted work creates serious liability. The contractor may be required to obtain permits or undo work at their expense.
Can I recover more than my actual damages?
Often yes. Consumer protection laws may allow double or triple damages, plus attorney fees for contractor fraud or violations.
About FreeDemandLetter
FreeDemandLetter provides free, AI-powered demand letter generation with location-specific legal citations. Our content is reviewed by subject matter specialists and regularly updated to reflect current laws. We help thousands of people resolve disputes effectively—but we're not lawyers, and this isn't legal advice. For complex situations, consult a licensed attorney in your jurisdiction.