Legal Question in Construction Law in California

Re: Unlicensed contractor refuses to finish 2nd story addition

If he's unlicensed, you can sue him and seek a return of all monies paid to him. The statute in California is quite strict - the unlicensed contractor cannot keep your money.

Can you force him to finish? Probably not. First, he's unlicensed, so the court is not going to force a unlicensed contractor to continue breaking the law. Second, why would you want him to finish? You need to hire a licensed contractor to come and do the work.

It's going to cost you much more than the original price, but that's just reality at this point. No legitimate contractor wants to come into a job and finish up someone else's work. Moreover, most legitimate contractors are not going to issue a warranty on any work that they did not perform.

You can file a claim with the CSLB. That process is time consuming, and there is certainly no quick solution there.

We maintain a practice that emphasizes suing contractors. If you need help, let us know.

Good luck.

Re: Unlicensed contractor refuses to finish 2nd story addition

There are two options I suggest.

Option #1 is to keep him working for now and finish the project and then after he finishes sue him and seek reimbursement from him for 1) ALL the moneys that you have paid to him, 2) treble damages (3 times the damages or money you paid to him up to an additional $10,000) according to Business and Professions (B & P) Code Sec 7000 et. seq., and 3) attorney fees under contract or if no contract was signed with an attorney fee provision then under Code of Civil Procedures 1029.8 which allows attorney fees against unlicensed contractors. Even if you knew at the time you entered into the contract that he was not licensed, you can recover ALL MONEY paid to him under Business & Professions Code section 7031(b).

Option #2: Demand that he return all money paid to you at this time and remove him from the job-site and hire another LICENSED contractor to finish the job. This option will probably cost you more money at this time but will ensure that the job is done right and completed. After the job is completed by the licensed contractor you would sue for all moneys paid to the unlicensed contractor as indicated above plus the additional costs above $68K that it took to finish the job.

If you seek representation, either now or when the unlicensed contractor completes the job-if he does so, I would be happy to help you through this matter so that your house is completed and money is returned from the unlicensed contractor. The law is pretty clear in the area of unlicensed contractors. Please check my profile because this is exactly the kind of cases that are routine within the area of construction law.

I appreciate your question.

Re: Unlicensed contractor refuses to finish 2nd story addition

An unlicensed contractor is not entitled to any compensation. Litigation is necessary to get your money back to get the job finished. Call me directly. 1.619.222.3504.

Re: Unlicensed contractor refuses to finish 2nd story addition

Under California law, your father can sue to get all of his money back. Your father should also find a licensed contractor to finish the work properly.

Re: Unlicensed contractor refuses to finish 2nd story addition

If you can't get it handled yourself, the next step would be to hire an attorney to 'persuade' him it is time to get it finished. The final recourse is to a lawsuit, but by then all his work will have stopped.

You're at risk he will not complete, or will bill for more than agreed because of 'change orders'. Without a written detailed contract, you have a problem with 'who said what' issues. YOu also have the risk of never being able to collect any money you may get a judgement for; he's unlicensed because he doesn't have anything, I'm betting. Contact me if you reach the point of needing counsel.

Re: Unlicensed contractor refuses to finish 2nd story addition

Your most prudent course of action is to cut your losses. Get control of the project and the cash flow. Cut him off. Get a lawyer. Figure out what assets the guy has and how you can sieze them. Contracting without a license is illegal, punishable as a misdemeanor with jail and all that. He cannot lien you (but perhaps his materials suppliers and employees can, so beware). There won't be any bond and the Contractors State License Bureau will be of little help. Don't pay him another penny, the money needs to flow the other way. Maybe call the police and make out a report based on this as a kind of "white collar" crime, although blue or dirty grey collars are more likely the literal truth.