Use this contractor disputes guide to build a clear demand letter for Spokane.
Spokane Contractor Disputes: Your Complete Guide to Resolving Construction Problems
Home improvement projects gone wrong are among the most frustrating experiences for Spokane homeowners. Whether you hired a contractor for a kitchen remodel, roof replacement, new deck, or whole-home renovation, disputes over quality, completion, and payment are unfortunately common. This comprehensive guide will show you how to resolve contractor disputes, recover your money, and hold contractors accountable under Washington State law.
Spokane's housing market has seen significant growth, leading to high demand for contractors and unfortunately creating opportunities for substandard work and contractor fraud. From older homes in the South Hill and Browne's Addition to new construction in North Spokane and the Valley, homeowners across the region face contractor issues. Washington's contractor registration laws and consumer protection statutes provide powerful tools for holding contractors accountable.
This guide covers Washington's Contractor Registration Act (RCW 18.27), the Consumer Protection Act (RCW 19.86), and other laws that protect homeowners from contractor misconduct. You will learn how to verify contractor licensing, document construction defects, demand proper completion or refunds, and pursue claims through Spokane County courts or regulatory agencies. We will also explain when contractor work requires permits and how permit violations can strengthen your position.
Whether your contractor abandoned the project, performed shoddy work, demanded payment for incomplete work, failed to obtain required permits, or simply disappeared with your deposit, Washington law provides remedies. Understanding these protections allows you to effectively advocate for yourself and recover the money you deserve.
Washington Contractor Laws: Your Rights in Spokane
Washington provides robust protections for homeowners through contractor registration requirements, consumer protection laws, and construction-specific regulations.
**Contractor Registration Act (RCW 18.27)**
Washington requires contractors to register with the Department of Labor and Industries before performing construction work. Under RCW 18.27.020, a contractor is defined as anyone who, for compensation, constructs, alters, repairs, improves, or demolishes buildings or structures. Key requirements include:
- **Registration**: Contractors must register with L&I and maintain current registration
- **Bond or Insurance**: Contractors must maintain a surety bond or have liability insurance
- **Renewal**: Registration must be renewed every two years
Under RCW 18.27.080, it is a crime for unregistered contractors to work or advertise. More importantly for homeowners, contracts with unregistered contractors are voidable, and the contractor cannot sue to collect payment.
**Recovery from Contractor's Bond**
Registered contractors must maintain a surety bond. If a contractor fails to perform or causes damages, homeowners can file a claim against this bond. The bond amounts vary by contractor type:
- General contractors: Minimum $12,000 bond
- Specialty contractors: Minimum $6,000 bond
The bond provides a source of recovery even if the contractor has no other assets.
**Lien Laws (RCW 60.04)**
Washington's Construction Lien Act allows contractors and suppliers to place liens on property for unpaid work. However, homeowners have protections:
- Contractors must provide a pre-lien notice before filing a lien on residential property
- Liens must be filed within 90 days of last providing labor or materials
- Homeowners can require contractors to provide lien releases from subcontractors
If you have paid your contractor but subcontractors file liens, you may have claims against your contractor for failing to pay them.
**Consumer Protection Act (RCW 19.86)**
Contractor misconduct often violates Washington's Consumer Protection Act. Under RCW 19.86.020, unfair or deceptive acts in trade or commerce are prohibited. Common contractor violations include:
- Misrepresenting qualifications or registration status
- Advertising services without proper registration
- Demanding large upfront payments then abandoning projects
- Performing work that does not meet code requirements
- Using bait-and-switch tactics on pricing
CPA violations can result in actual damages or $200 (whichever is greater), up to treble damages for willful violations, and attorney fees (RCW 19.86.090).
**Permit Requirements**
Most construction work in Spokane requires permits from the City of Spokane Building Department or Spokane County. Work typically requiring permits includes:
- Structural changes
- Electrical work
- Plumbing modifications
- HVAC installation
- Roofing replacement
- New construction or additions
Contractors are generally required to obtain permits. Work done without permits may be ordered removed or redone, and the contractor bears responsibility for any resulting costs.
**Warranty Protections**
Washington recognizes implied warranties in construction contracts:
- **Implied Warranty of Workmanlike Quality**: Work must meet the standards of a competent contractor
- **Implied Warranty of Habitability**: For new construction, the home must be fit for human habitation
These warranties exist regardless of what the written contract says and cannot be waived for residential work.
**Statute of Repose (RCW 4.16.310)**
Washington has a six-year statute of repose for construction defect claims, running from substantial completion of the project. Some latent defects may have longer discovery periods. Act promptly when you discover construction problems.
Step-by-Step Guide to Resolving Contractor Disputes in Spokane
**Step 1: Verify Contractor Registration**
Before taking any action, verify whether your contractor is properly registered with Washington L&I. Search at https://secure.lni.wa.gov/verify. Note the contractor's registration number, bond information, and insurance status. If the contractor is unregistered, this significantly strengthens your position - unregistered contractors cannot sue you for payment, and working without registration is illegal.
**Step 2: Document Everything**
Gather comprehensive documentation of the project and problems. Collect: your written contract and any change orders, all payments made (checks, receipts, bank statements), photographs of the work at various stages, photographs of defects or incomplete work, any communications with the contractor (emails, texts, voicemails), permit information (or evidence permits were not obtained), and inspection reports if applicable. Take detailed photos of every defect, preferably with something showing scale.
**Step 3: Review Your Contract**
Carefully review your written contract for: scope of work promised, payment schedule, completion date, warranty provisions, dispute resolution requirements, and permit responsibilities. If you do not have a written contract, gather any evidence of what was agreed verbally (texts, emails, estimates). Note any contract provisions the contractor violated.
**Step 4: Get Independent Assessments**
Obtain opinions from other licensed contractors about the work quality and what it would cost to fix problems. Get at least two written estimates for completing or repairing the work. These estimates document the cost of the contractor's failure to perform and provide evidence of industry standards.
**Step 5: Send a Written Demand**
Send a formal demand letter to the contractor. The letter should: identify the project and contract, describe specific defects or incomplete work, cite the contractor's obligations, demand specific remedy (completion, repair, or refund), set a deadline (typically 10-14 days), and warn of legal action including bond claims and regulatory complaints. Send via certified mail with return receipt requested.
**Step 6: File Complaint with L&I**
If the contractor does not respond satisfactorily, file a complaint with Washington Department of Labor and Industries. L&I investigates contractor complaints and can take disciplinary action including suspension of registration. File online at lni.wa.gov. This creates regulatory pressure and official documentation of the contractor's misconduct.
**Step 7: File Bond Claim**
If the contractor caused damages or failed to complete work, file a claim against their surety bond. The bond information is available from L&I's contractor verification system. You must file within two years of the claim arising. The surety company will investigate and may pay valid claims from the bond.
**Step 8: Contact City/County Building Department**
If work was done without required permits, report it to Spokane's Building Department at (509) 625-6300 or Spokane County's Building and Planning at (509) 477-3675. Unpermitted work may need to be removed or brought to code at the contractor's expense. Building department involvement can pressure contractors to resolve issues.
**Step 9: File in Small Claims Court**
For disputes up to $10,000, file in Spokane County District Court. Small claims court is relatively quick, inexpensive, and does not require an attorney. Bring all documentation to your hearing. You can recover the cost to complete or repair the work, overpayments made, and other consequential damages.
**Step 10: Consider Superior Court**
For claims over $10,000 or complex disputes, Superior Court may be necessary. Consider consulting with a construction attorney, especially if the contractor files a lien on your property or the damages are substantial. Attorney fees may be recoverable under the Consumer Protection Act.
Essential Evidence for Spokane Contractor Dispute Claims
Strong documentation is essential for contractor disputes. Courts, regulatory agencies, and surety companies all rely on evidence to evaluate claims.
**Contract Documentation**
Gather all documents establishing the agreement: written contracts and any amendments, proposals and estimates, change orders, warranty documents, and license and insurance certificates provided. If there was no written contract, gather emails, texts, or any writing showing what was agreed. The contract establishes what the contractor promised and provides the baseline for proving breach.
**Payment Records**
Document every payment made: canceled checks (front and back), bank statements showing payments, credit card statements, receipts from the contractor, and any invoices received. Create a spreadsheet showing payment dates, amounts, and purposes. This proves what you paid and helps calculate damages if the work is incomplete or defective.
**Photographic Evidence**
Photographs are crucial in construction disputes. Document: the condition before work began, progress during construction (if you have photos), the current condition showing defects or incompleteness, close-ups of specific problems, wide shots showing context, and comparisons to contract specifications or plans. Include something for scale in photos. Date-stamp images and save originals with metadata intact.
**Independent Expert Opinions**
Obtain written assessments from qualified professionals: estimates from licensed contractors for completing/repairing work, engineering assessments for structural issues, inspection reports from licensed home inspectors, and code compliance assessments if permit violations are involved. These opinions establish that the work is defective by industry standards and document repair costs.
**Communication Records**
Preserve all communications: emails about the project, text messages, voicemails (save or transcribe them), notes from phone conversations (with dates and substance), and letters sent and received. Communications often contain admissions, promises, or evidence of abandonment.
**Permit and Inspection Records**
Gather permit-related documents: copies of any permits obtained, inspection reports and results, evidence that required permits were not obtained, and communications with building departments. Request permit records from Spokane's Building Department or Spokane County for your address.
**Contractor Verification**
Document the contractor's status: L&I registration verification printout, bond information, insurance certificates, and any complaints or disciplinary history. If the contractor is unregistered, print the search results showing no registration.
**Damages Documentation**
Document all damages and costs: repair estimates, receipts for materials you had to purchase, costs to fix defects or complete work, temporary housing if you had to move out, lost time from work, and any other consequential damages. Keep receipts for everything.
Critical Deadlines for Contractor Disputes in Washington
Contractor disputes involve several important deadlines under Washington law. Missing these can limit or eliminate your remedies.
**Bond Claim Deadline**
You must file a claim against the contractor's surety bond within two years after the claim arose. The claim "arises" when you discover or reasonably should have discovered the defect or failure. File bond claims as soon as possible - delays complicate claims.
**Statute of Repose (RCW 4.16.310)**
Construction defect lawsuits must be filed within six years of substantial completion of the improvement. This is a hard deadline that runs regardless of when you discovered the defect. For most projects, this means six years from when the work was essentially finished.
**Statute of Limitations**
The statute of repose can cut off claims even if the statute of limitations has not expired.
**Lien Deadlines**
**Demand Letter Timing**
Send your demand letter promptly after identifying problems. Give the contractor a reasonable time to respond (10-14 days), but do not let months pass. Delays weaken claims and may allow contractors to move assets or dissolve businesses.
**Permit Complaint Timing**
Report permit violations to the building department as soon as you become aware of them. While there is no strict deadline, earlier reports are more effective. Some violations may be grandfathered or become harder to address over time.
**Small Claims Filing**
The statute of limitations applies to small claims court just as it does to other courts. File within the applicable limitation period. Once filed, you typically have 90 days to serve the defendant.
**Contract Notice Requirements**
Some contracts require written notice of defects within a certain period. Review your contract for any such provisions and comply with them to preserve your rights.
Common Mistakes to Avoid in Spokane Contractor Disputes
Homeowners often undermine their contractor claims through avoidable mistakes. Learning from these errors will help you maximize your recovery.
**Paying Too Much Upfront**
Never pay more than 10-15% as a deposit, regardless of contractor requests. Large upfront payments give contractors incentive to disappear or prioritize other jobs. Washington law does not limit deposits, but paying large amounts upfront is the most common cause of contractor losses. Make progress payments only for work completed.
**Not Verifying Registration**
Always verify contractor registration with L&I before hiring. Unregistered contractors cannot legally contract in Washington, and you may have no surety bond to claim against if problems arise. Take five minutes to search at lni.wa.gov/verify.
**No Written Contract**
Verbal agreements create disputes about what was actually promised. Always get a written contract specifying: scope of work in detail, materials to be used, start and completion dates, payment schedule tied to milestones, permit responsibility, warranty terms, and change order procedures. A detailed contract protects you and makes disputes easier to resolve.
**Paying Cash Without Records**
Cash payments without receipts cannot be proven. Always pay by check, credit card, or other traceable methods. Get receipts for any cash payments. Without proof of payment, you may have no claim for overpayment.
**Not Documenting Progress**
Take regular photographs throughout the project. Without progress documentation, proving that work was incomplete or when defects were created becomes difficult. Photos also help you monitor progress against the payment schedule.
**Making Final Payment Before Final Inspection**
Never make the final payment until work is completely finished, inspected (if permits were required), and you are satisfied. Once the final payment is made, you lose negotiating leverage. Hold back at least 10-15% until all punch list items are addressed.
**Attempting DIY Fixes**
If you fix defective work yourself before documenting it, you may destroy evidence and make it harder to prove the contractor's failure. Document first, get professional opinions, and then decide on repairs. Self-repairs may also void warranty claims.
**Threatening Without Following Through**
Empty threats teach contractors to ignore you. If you send a demand letter with a deadline, follow through with the next step (bond claim, regulatory complaint, lawsuit) when the deadline passes. Contractors who believe you will not actually take action have no incentive to settle.
**Hiring the Same Contractor to Fix Problems**
This rarely works well. A contractor who did substandard work the first time is unlikely to do better the second time. Get independent contractors to fix problems and pursue the original contractor for reimbursement.
**Ignoring Lien Rights**
If subcontractors or suppliers send pre-lien notices, take them seriously. You could end up paying twice if your contractor did not pay them. Require lien releases with each progress payment.
Frequently Asked Questions About Contractor Disputes in Spokane
Verify contractor registration at https://secure.lni.wa.gov/verify. Enter the contractor's name or license number. The database shows registration status, bond information, insurance coverage, and any complaints or disciplinary actions. Always verify before hiring and before making final payment.
Unregistered contractors cannot legally perform construction work or advertise services in Washington. More importantly, contracts with unregistered contractors are voidable, meaning you may be entitled to a full refund. Unregistered contractors also cannot sue you to collect payment. Working without registration is a gross misdemeanor under RCW 18.27.020.
Find the contractor's bond information through L&I's verification system. Contact the surety company listed and request a claim form. Submit your claim with documentation of the contractor's failure and your damages. The surety will investigate and may pay valid claims from the bond. You must file within two years of when the claim arose.
Yes. You generally have the right to withhold payment for work not performed or not meeting contract specifications. However, document the deficiencies thoroughly, provide written notice to the contractor specifying the problems, and be prepared to pay the undisputed portion. Never withhold payment without clear justification and documentation.
You can dispute improper liens. If you paid the contractor and they failed to pay subcontractors, you may have defenses. Liens must be filed within 90 days and foreclosed within 8 months. Consult with an attorney promptly if a lien is filed. You can also require lien releases as part of your payment process to prevent this situation.
Washington small claims court handles claims up to $10,000. In Spokane County, file at the District Court at 1100 W Mallon Ave. You do not need an attorney for small claims. For larger claims, you would file in Superior Court where legal representation is advisable.
Potentially yes. If the contractor's conduct violated the Consumer Protection Act (RCW 19.86), you can recover attorney fees if you prevail. Some contracts also include attorney fee provisions. In small claims court, attorney fees are generally not awarded because attorneys are not required.
File a complaint online at lni.wa.gov or call (360) 902-5800. Include the contractor's name and registration number (if known), description of the problem, copies of contracts and communications, and photos of defective work. L&I investigates complaints and can take disciplinary action including suspending or revoking registration.
What to Expect When Resolving Contractor Disputes in Spokane
Understanding realistic outcomes helps you navigate contractor disputes effectively. Most disputes settle through negotiation, but knowing potential court outcomes strengthens your position.
**Typical Resolution Outcomes**
Common outcomes include: contractor returns to complete work properly, refund of overpayment for incomplete work, recovery from contractor's surety bond, settlement payment for cost of repairs by another contractor, court judgment for damages, and regulatory action against the contractor.
**Factors Affecting Outcomes**
Several factors influence results. Documentation strength is critical - claims with contracts, photos, and professional assessments succeed more often. Contractor registration status matters significantly; unregistered contractors have weaker legal positions. Bond availability provides a source of recovery. The contractor's financial situation affects ability to collect judgments.
**What You May Recover**
Potential recoveries include: cost to complete unfinished work, cost to repair defective work, overpayments made, cost to obtain required permits and bring work to code, related expenses (temporary housing, storage), and potentially treble damages and attorney fees for CPA violations.
**Timeline for Resolution**
Negotiated settlements may resolve within 2-4 weeks if the contractor is cooperative. Bond claims typically take 2-3 months for investigation and payment. L&I investigations may take 3-6 months. Small claims court schedules hearings within 30-60 days. Complex Superior Court cases may take 12-18 months.
**Settlement Considerations**
Calculate your maximum potential recovery before settling. Include: cost of repairs or completion (from your estimates), any overpayments, and consequential damages. A settlement of 70-80% may be reasonable to avoid litigation uncertainty, but do not accept substantially less than documented damages without good reason.
**Collecting Judgments**
Getting a judgment is one thing; collecting is another. Contractors sometimes have few assets or dissolve their businesses. Bond claims may be your best recovery source. Before investing heavily in litigation, consider the contractor's ability to pay. A bond claim against a registered contractor provides more certain recovery than a judgment against an individual.
**Regulatory Outcomes**
L&I complaints may not directly compensate you but can result in contractor suspension, fines, or other disciplinary action. This can motivate settlement and protects future homeowners. Consider regulatory complaints as part of your overall strategy.
Spokane Contractor Dispute Resources and Contacts
**Government Agencies**
**Washington Department of Labor & Industries**
Contractor Registration Section
Phone: (360) 902-5800
Website: lni.wa.gov
Verify contractors: https://secure.lni.wa.gov/verify
File complaints, verify registration, and access bond information.
**City of Spokane Building Department**
808 W Spokane Falls Blvd, Spokane, WA 99201
Phone: (509) 625-6300
Website: my.spokanecity.org
Permit verification, code enforcement, and construction complaints.
**Spokane County Building and Planning**
1026 W Broadway Ave, Spokane, WA 99260
Phone: (509) 477-3675
Website: spokanecounty.org
For properties outside Spokane city limits.
**Washington State Attorney General - Spokane Office**
1116 W Riverside Ave, Spokane, WA 99201
Phone: 1-800-551-4636
Website: atg.wa.gov
Consumer protection complaints for contractor fraud.
**Courts**
**Spokane County District Court (Small Claims)**
1100 W Mallon Ave, Spokane, WA 99260
Phone: (509) 477-4700
Handles contractor claims up to $10,000.
**Spokane County Superior Court**
1116 W Broadway Ave, Spokane, WA 99260
Phone: (509) 477-5788
For claims over $10,000 and lien disputes.
**Legal Assistance**
**Northwest Justice Project - Spokane**
35 W Main Ave, Suite 300, Spokane, WA 99201
Phone: (509) 324-9128
Website: nwjustice.org
Free legal assistance for qualifying individuals.
**Spokane County Bar Association Lawyer Referral Service**
Phone: (509) 327-3700
Website: spokanebar.org
Connects you with construction and consumer law attorneys.
**Additional Resources**
**Better Business Bureau of Eastern Washington**
152 S Jefferson St, Suite 200, Spokane, WA 99201
Phone: (509) 455-4200
Website: bbb.org
File complaints and check contractor ratings.
**Washington LawHelp**
Website: washingtonlawhelp.org
Free legal information including contractor dispute guides.
**Spokane Home Builders Association**
Phone: (509) 532-4990
Website: spokanehba.com
Trade association that may assist with member contractor issues.
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.
Washington Contractor Disputes Laws
Applicable Laws
- Washington Contractors License
- RCW 18.27
Small Claims Limit
$10,000
Consumer Protection Agency
Washington L&I
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.