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The Daily Insight

What do you do if a contractor steals your money?

Author

Sarah Duran

Published Feb 11, 2026

Five Ways To Get Your Money Back From Bad Contractors

  1. Go to Small Claims Court. Small claims court is a legal venue for homeowners who feel they are owed money back from a contractor.
  2. Hire an Attorney.
  3. File a Complaint with the State.
  4. Pursue a Bond Claim.
  5. Post Reviews.

What to do if a contractor takes your money and doesn’t work?

If a contractor takes a down payment and does nothing for the job such as having materials delivered or showing up to work on it he is guilty of fraud in most cases. Call the police and district attorney to see what charges can be filed against him.

What to do if contractor messes up?

hire another contractor to complete the job. withhold any further payment to them. decide if it is worth it to ask for a refund or sue them. ask them to sign a release form if you decide not to sue which holds each party harmless.

What can I do if my contractor fails to pay?

If the contractor took you to court for not paying, you’d need to defend your actions by proving you didn’t pay because the contractor failed to perform. You could also initiate arbitration proceedings or litigation and argue for the arbitrator or court to provide you with a remedy. The right remedy can vary.

What happens if the contractor does not finish the job?

If he or she does nothing, the missing items will remain unavailable. Funds given to the contractor for incomplete work are irretrievable without starting a claim. Depending on the amount of possible compensation, the homeowner will need to determine which path is best.

What are legal remedies available when a contractor fails?

One option is to simply try to negotiate on the issue. You can do this with help from your lawyers on your own, or can work with a trained mediator to try to come to a consensus. If no compromise or solution can be reached through negotiation, litigation could also be an option.

Is it worth it to keep the same contractor?

Keeping the same contractor on the job would save you the immediate trouble of cranking up the search process (research, references, and the rest), but it would invite a repetition of the same problem, perhaps at far greater financial cost. It’s probably not worth it.