What to Do When a Contractor Does Poor Work (Updated for 2025)

Picture this — you write out a check for thousands of dollars to have a contractor remodel your bathroom. You leave for the day, and when you come back, your bathroom is in pieces. The workers broke tiles, put holes in the walls and took a sledgehammer to your shelves. You can’t find the contractor, and when you try to call, you get no answer. Now you’re stuck with figuring out what to do when a contractor does poor work.

Not every case of shoddy work will be so extreme. Maybe the contractor finished the project, but you’re unhappy with the quality. Perhaps they finished the job to your liking, but now they want an extra thousand bucks above the agreed-upon contracted amount.

Hiring a contractor can sometimes be risky. When you aren’t happy — whether due to the outcome of the work or serious contract issues — what can you do to resolve the problem?

Step 1: Review the Contract

The first step to take if your contractor did a bad job is to review the contract. You and your contractor should have a written contract outlining the scope of work. Before you can fire your contractor, you must first document that they breached this agreement. The contract must include:

• Scope of work
• Specific materials to use
• Deadlines for each working phase
• Workmanship expectations
• Cost and payment terms
• Warranties and guarantees

Compare the finished product to what was laid out in the contract. If a dispute arises, you will be legally protected because the contractor may have breached the contract. Aside from the contract, consider reviewing any written communications, including text messages and emails, that touched on project expectations.

Step 2: Document the Lapses

Another thing to do when a contractor does a bad job is to document the issues. Take a photo or notes of every instance of substandard work with timestamps. Make a documentation throughout each project phase — progress, delays and observations. That way, you have evidence to show the contractor and the court, should you decide to escalate the issue. Ensure you have good lighting and capture from different angles to elaborate on your problems in an unbiased manner.

If you’re unsure about your judgment, you may hire another expert to verify work quality or problems. Understanding how and why defects occur requires technical expertise and an unbiased perspective.

Step 3: Arrange a Meeting

Contractors rely on positive reviews and word-of-mouth marketing, so most will want your feedback and strive to fix any wrongs. Keep a journal outlining the dates and times you attempted to make contact and the contact method — call, text or email. If you cannot reach them any other way, sending a letter via certified mail verifies your diligent effort to get in touch. 

Be straightforward when addressing your concerns or issues with their work. Discuss your disappointments or unmet details in the contract and see if you can resolve them. Remember, it’s a two-way conversation, so give your contractor space and time to explain their side.

If you can resolve the issue before getting lawyers involved, you’ll save a lot of time and money. No one wants to go to court, especially small business owners and their employees. If you remain calm during the conversation and have the paperwork to back up your claims, your contractor will likely fix the issues or offer support to correct their wrongs.

Step 4: Write a Demand Letter

It can be frustrating to think about what to do when a contractor does a bad job and doesn’t respond to you. In such cases, you can write a demand letter to the contractor’s business address asking them to rectify the problem within a specified number of days. 

Many states like Texas, California and Wisconsin have right-to-cure laws that require you to provide the contractor a chance to fix defects before taking action against them. Keep your letter concise and specific. It will be part of your evidence if you decide to take legal action, so outline well and make a copy of the letter.

Don’t skip the mail certification, even if the post office is busy. It provides a receipt that notes when you mailed the letter and when it arrived. If your contractor tells a judge they never received the letter, your certified mail receipt will prove your case.

Step 5: Fire the Contractor

What happens when you realize the contractor isn’t the right person for the job while the project is underway? When the contractor does bad work and refuses to address your grievances, it may be time to terminate them. It can be a costly and time-consuming process, so make sure to carefully review the termination clause in your contract. It will determine how much money you’ll owe them for ending the contract early if you have to pay anything at all. 

Make your contract termination in writing and save a copy as evidence. It should include:

• Reason for termination
• Proof of reason for termination. You need to clearly elaborate on the agreements in the contract and how the contractor failed to meet them
• If your state has a right-to-cure or equivalent law. Discuss when you issued the notice and an explanation of the contractor’s failure to fix the breach
• How you fulfilled your responsibilities, as stated in the contract, such as timely payments and following the contract’s dispute resolution processes
• Your desired outcome after the termination. Do you want to hire someone else or a reimbursement fee?

Specify precisely why you’re firing the contractor to match what you addressed in your demand letter. You’ll also need to notify any bank or escrow company involved in your project so they have the termination notice on file.

Step 6: Prepare for Potential Legal Action

If your contractor did a bad job, refuses to address any issues, be ready to escalate. Ensure you have:

• Make copies of all the signed paperwork and anything else related to your project
• Proper documentation of written and verbal communication
• Documentation of poor work

Here’s where you may wish to contact an attorney. If you refuse to pay what’s stated in the termination clause, the contractor may file a counterclaim against you, placing a lien on your property to secure the payment owed. You could run into issues when you go to sell until you resolve the matter. 

Step 7: File a Claim or Complaint

The next step is to see if you can file a claim or complaint. These are two different procedures that depend on which contractor you hired. Some contractors have a surety bond policy in place to protect them against client complaints or disputes. The policy also works in your favor if you have evidence of incomplete or shoddy work.

Ask the management team for their insurance agent’s contact information. Get a copy of the contractor’s surety bond and file a bond claim. If approved, the policy will pay for your losses and get the contractor to reimburse them. It keeps everyone out of court and is the next best step when a contractor does poor work.

If your team doesn’t have a surety bond policy in place, you can also file an official complaint with your state’s licensing board, but only if your contractor has a license. The board will verify the problem and potentially revoke the contractor’s license if they don’t resolve the dispute. If you hired an unlicensed contractor, you may have little choice but to skip this step and proceed to court. 

Step 8: Request Arbitration or Mediation

Sometimes a licensing board will refuse to take up a complaint, or you might have hired an unlicensed team. In that case, you can look into requesting arbitration or mediation.

Many contracts have an arbitration or dispute clause. This is an agreement that requires you to seek the help of a professional mediator instead of turning to legal action. Compared to a court case, arbitration is inexpensive and takes less time. Courts typically refuse to overturn arbitration decisions, but they can step in to enforce the judgment.

Mediation is an alternative, even if not specified in your contract. A neutral third party will find a compromise, which will require hiring a lawyer. You’ll talk things over and agree on a solution. You should also note that the solution isn’t legally enforceable because it stays out of court and isn’t binding. However, it’s often preferable because of the high costs associated with going before a judge.

Finding an agreement through mediation isn’t a guaranteed solution like arbitration because both parties must agree to an official compromise voluntarily. Your contractor could walk away at any point or drag out the process because they don’t want to pay your bill.

Choosing mediation or arbitration depends on your relationship with the contractor and what issues you need to dispute. Consult a legal expert if you’re unsure which path to take.

Step 9: Go to Small Claims Court

If your contract did not have an arbitration or dispute clause, your next step is to file in small claims court. All you have to do is go to your local municipal building and fill out a form detailing your dispute. Many courts also provide paperwork on their website that you can print at home.

While you fill out your paperwork, include information such as:

• Your name and address (or the project’s address)
• Details regarding your dispute that resulted in your claim
• An exact calculation of the damages you’re requesting

Identify the contractor and their company, if they’re not an independent professional. When contractors work for a business, you’ll likely have to sue the LLC or corporation instead of the individual contractor. An attorney can clarify the details of your situation.

Keep in mind that the amount you can sue for in small claims court varies by state. When the court approves your claim, you’ll have to serve the defendant. Someone other than you should deliver a copy of the claim in person. It may take time to get information on where the contractor is and what time you can run into them, but it must happen in person.

Research companies in your city that will serve the defendant for you if you cannot find someone to do it for free. It’s better to hire a professional process server for contentious situations. 

After serving the paperwork, proceed with the next step — complete the court’s proof of service form and file it. Most of the time, you must file the proof of service several weeks ahead of your set court date. Complete this part promptly to avoid missing the date or rescheduling.

Step 10: Appear in Court

Plan ahead so you appear on time for your court date. Most courts don’t allow legal counsel in the room unless you’re suing on behalf of your LLC or corporation. It may take several hours to appear before the judge because of other cases lined up for that day, but you still have to show up on time.

The judge may offer the opportunity for you and the contractor to sit down with a mediator. If you decline, the judge will review your evidence and may ask questions. Submit all the information that you gathered since deciding to fire the contractor, such as:

• Signed paperwork
• Pictures of defects or low-quality deliverables
• Copies of receipts and letters

The final verdict will come after the judge reviews all the evidence, even if the defendant doesn’t show up. They might announce their decision right away or mail it to you, depending on how the judge normally handles small claims cases.

Step 11: Submit Your Review

Reviews are the last powerful tool in a client’s toolbox. Beware that what you write may affect any legal action you later take. Therefore, while you can pen a negative Yelp review at any time, it’s better to wait until you have a resolution before sounding off online. The last thing you want is a counterclaim where the contractor accuses you of harming their business by making untrue statements. 

After settling on a mediated solution or finalizing the verdict in court, write a review about your experience on the contractor’s website. You’ll warn other homeowners about the contractor’s conduct and potentially prevent someone from going through the same situation.

If enough negative reviews accumulate online, the state licensing board may also revoke the contractor’s license. It all depends on the quality of the reviews and how many the contractor receives.

How to Avoid Hiring a Contractor That Does Poor Work

No one wants to partner with a contractor who does poor work. It can only lead to unnecessary stress and additional costs. Here are some red flags that suggest a contractor may not live up to your expectations:

1. Unable to Validate Claims 

A sign that a contractor may do a bad job is if they can’t validate the claims about their services. A responsible contractor wouldn’t claim to have thousands of five-star reviews if they can’t show it to you. If they are hesitant to provide these, it may be a red flag.

Word-of-mouth is often the best advertising for businesses and customers alike. Ask your friends, family, neighbors and the clerk at your local market who they use. Stay local when possible — it’s a lot easier to track down an errant contractor when they’re also your neighbor whom you run into regularly while buying groceries. 

2. Unfair Contract Terms

Rigid terms can be a cause of future disputes. Before signing a contract, make sure you have a solid understanding of the terms and conditions. Look for jargon and phrases that may put you at a disadvantage and seek an attorney’s help if needed. A good contract should protect the interests of both parties and offer flexibility to accommodate unforeseen situations that may happen while the project is underway.

3. Negative Online Reviews

Observe the patterns in the feedback. Are there consistent complaints? What are the common issues? A few bad reviews are common, but a pattern of dissatisfaction is an alarming red flag. Similarly, you can look at how the contractor responds to negative feedback. Do they demonstrate a willingness to resolve issues?

Frequently Asked Questions

1. Which Attorney Should I Hire for Poor Workmanship?

A construction defect or real estate attorney specializing in construction law is your best option. These professionals have the knowledge and expertise to navigate disputes related to shoddy construction projects.

If you’re asking for more money than a small claims court allows, you’ll need to hire a lawyer specializing in contract disputes and take your case to regular court. Keep in mind that this process will cost more than small claims, as an attorney typically charges a few hundred dollars per hour. However, having a legal professional by your side could lend you greater peace of mind.

2. How to Report Issues to the State Licensing Board?

You can watch this step-by-step guide:

3. Can I Fire a Contractor for Project Delays?

Yes, given that there’s a significant delay. However, remember that delays are a fairly normal part of the construction process. Termination is possible if the contractor caused the issues, not something uncontrollable like inclement weather.

Save Your Time and Money

Now you know what to do when a contractor does poor work, it’s time to take action and hope for the best outcome. However, if you haven’t hired a contractor yet and want to save yourself a headache, keep an eye out for red flags.

Plenty of red flags will pop up if you read reviews and talk to several contractors about the job. Top signs of a scam include requiring payments in cash, a high upfront deposit — anything more than 20% of the total labor cost — no physical office and shoddy-looking equipment.

Unfortunately, it’s not always easy to tell if a contractor is a scam artist. If you get stuck in a bad situation, take a deep breath and follow the advice above. With time and patience, you’ll make it through.

Original Publish Date 9/17/2022 — Updated 7/1/25