Problem/Dispute Resolution

If you feel that you have a problem with your contractor or his workmanship, you have several different options to settle the dispute. But before you take any action, ask yourself, "Am I dealing fairly with the contractor?" Ask yourself if your expectations are exceeding the contract specifications or the manufacturer's recommendations. If so, perhaps your problem can be solved by communicating with the contractor. If you've established that your problem with your contractor is legitimate you should follow these steps:

1. When you communicate with your contractor, make sure you do so in writing. This ensures that all of your communication with the contractor can be referenced in the future.

2. If the problem can't be resolved between you and the contractor alone, consider contacting a third party mediator or arbitrator. Arbitration or mediation is a fair, quick, and inexpensive way to resolve your dispute. Your contract should reference a dispute resolution process to help facilitate any arbitration or mediation process (See "Contractor Hiring Tips - A Checklist for Homeowners #14: Contracts and Contract Elements").

3. The last move you should make is to file a lawsuit. Lawsuits are costly to everyone involved and often take a long time to resolve. Furthermore, while you are waiting for your litigation to be resolved, your project may not be completed and you may have to find another contractor to finish the job. This could cost you a considerable amount more than working the problem out through a dispute process.

We must also stress that negative consequences can occur if a homeowner refuses to pay a contractor. In some cases, lien rights can be exercised on your property until payment is received.

Many times, problems can be worked out by communicating with your contractor, mediator or third party arbitrator. If you follow our, "Tips on Hiring a Contractor" you probably won't even need to reference this section!