Can You Sue a Contractor for Unfinished Work?

When hiring a contractor to undertake a project, whether it’s a home renovation, construction job, or any other endeavor, you expect them to complete the work as agreed upon. Unfortunately, not all contractors fulfill their obligations, leaving homeowners and clients with unfinished projects and mounting frustration. This raises the crucial question: can you sue a contractor for unfinished work? Contract law attorneys emphasize the importance of understanding the legal aspects of this issue, exploring the rights of individuals and businesses in Nevada, reviewing possible remedies, and factors to consider before taking legal action.

Understanding the Contract Between the Contractor and the Client

The foundation of any agreement between a contractor and a client is the contract. A well-drafted contract should clearly outline the scope of work, project timeline, deliverables, payment terms, and other essential details. Before initiating a lawsuit for unfinished work, it’s essential to review the contract thoroughly. Many disputes arise due to misunderstandings or vagueness in the contract’s language. If the contract clearly states the contractor’s responsibilities, and they fail to meet them, you may have grounds for legal action.  It is also important to think about hiring an attorney to review a contract with any contractor before agreeing to enter into the contract so that you clearly understand your rights and responsibilities under the contract.

Breaches of Contract

A contractor’s failure to complete the agreed-upon work within the specified timeframe may be a breach of contract. Such breaches can occur due to a variety of reasons, including poor project management, financial issues, or even abandoning the project altogether. To pursue legal action for breach of contract, you’ll need to demonstrate that the contractor failed to fulfill their obligations as outlined in the contract.

Mitigation and Communication

Before resorting to legal action, it is crucial to make a reasonable effort to mitigate the situation and communicate with the contractor. Reach out to the contractor to discuss the issues and potential solutions. Document all communication, including emails, letters, and any responses received. Attempt to resolve the matter amicably through negotiation or mediation, as these steps can save time, money, and preserve business relationships.

When Can You Sue a Contractor for Unfinished Work?

You may be able to sue a contractor for unfinished work when the contractor fails to fulfill their contractual obligations as outlined in the agreement. Before taking legal action, it’s essential to communicate with the contractor, document the issues, and attempt to resolve the matter amicably. If resolution efforts fail, consulting with a legal professional is crucial to assess the viability of your case and determine the appropriate course of action. 

The key factors that may warrant a lawsuit include:

Breach of Contract: If the contractor fails to complete the agreed-upon work within the specified timeframe or does not meet the quality standards defined in the contract, it constitutes a breach of contract. This failure gives you the right to seek legal action to recover damages.

Lack of Progress or Abandonment: If the contractor shows little or no progress on the project, or completely abandons it without a valid reason or prior agreement, you may have grounds to sue for unfinished work.

Negligence: In some cases, unfinished work might result from the contractor’s negligence. For example, if the contractor’s actions or omissions lead to significant delays or damage, the client may pursue a negligence claim.

Fraud or Misrepresentation: If the contractor intentionally provided false information or misrepresented their qualifications to secure the contract, you may sue for fraud or misrepresentation.

Unjust Enrichment: In rare cases where there is no formal contract, the client may be able to sue for unjust enrichment if the contractor received payment for work they did not complete.

Determining Damages When You Sue a Contractor for Unfinished Work

When you sue a contractor for unfinished work, one of the critical aspects of your legal claim is determining the damages you have suffered as a result of the contractor’s breach of contract. Damages are the monetary compensation awarded to the aggrieved party to make up for the losses incurred due to the unfinished work. The primary goal of damages is to put the injured party in the position they would have been in had the contract been fully performed. The calculation of damages will depend on various factors. If you sue a contractor for unfinished work, you may be able to recover various types of damages. These can include:

Compensatory Damages

Compensatory damages are meant to compensate the plaintiff for direct financial losses caused by the contractor’s breach. Examples of these damages might include the cost of hiring another contractor to complete the work, or the difference in value between the promised work and the actual work performed.

Consequential Damages

Also known as special damages, consequential damages are losses that are not a direct result of the unfinished work itself, but are a consequence of the breach. For example, if the unfinished work caused significant delays in moving into a new property, resulting in additional temporary living expenses, those expenses may be recoverable.

Lost Profits

In some cases, the unfinished work may have been intended for a business or commercial purpose, and the contractor’s breach may lead to lost profits or business opportunities. These losses are also recoverable. Your attorney will calculate the estimated lost profits based on past performance or market projections.

Punitive Damages

In rare cases in Nevada, punitive damages may be awarded to punish the contractor if malicious or fraudulent misrepresentation of the contractor’s intent occurred. Generally, however, punitive damages are not awarded in breach of contract cases unless the conduct that constituted the breach of contract is also a tort that allows for punitive damages.

Liquidated Damages

Some contracts include a provision for liquidated damages. These are pre-determined amounts to be paid by the contractor in case of specific breaches. However, these clauses must be reasonable and not seen as penalties.

Attorney’s Fees and Court Costs

In some jurisdictions, the prevailing party in a lawsuit may be entitled to recover their attorney’s fees and court costs from the losing party.

How Do You Sue a Contractor for Unfinished Work?

If you and your attorney have exhausted other remedies, taking legal action may be your best option. Initiating a lawsuit for unfinished work in Nevada involves several steps. Your attorney will evaluate your case and help you navigate the legal process to ensure your rights are protected. Generally, the steps are as follows:

1. File a Complaint: The first step is to file a formal complaint against the contractor in the appropriate court. The complaint should outline the facts of the case, the legal claims made, and the damages sought.

2. Response: After the defendant is served with the complaint, the contractor will have a certain period to respond. The defendant may admit or deny the allegations. In some cases, they may file a counterclaim and may bring in other third-party defendants.

3. Discovery: During the discovery phase, both parties exchange relevant information and evidence. This may include documents, witness statements, photographs, and expert reports.

4. Mediation or Settlement: Before going to trial, the court may encourage both parties to attempt mediation or settlement negotiations to reach a resolution without a full trial. Your attorney will represent your interests as negotiations proceed.

5. Trial: If no settlement is reached, the case proceeds to trial. Both sides will have the opportunity to present their evidence and arguments before the court. The judge or jury will then determine liability and damages.

6. Enforce the Judgment: If the court rules in your favor and awards damages to you, your attorney will help you enforce the judgment to collect the compensation owed.

What Evidence Is Needed to Sue a Contractor for Unfinished Work?

It’s essential to gather evidence and documentation to support your claim for damages if a contractor failed to follow through with the terms of your contract. This includes, but is not limited to:

• Copies of the original contract and any amendments or change orders.
• Records of payments made to the contractor and any outstanding balances.
• Correspondence with the contractor, including emails, letters, and text messages regarding the unfinished work.
• Photographs or videos of the unfinished work and any damages caused by the contractor’s actions or omissions.  You may also need an expert to prove causation and/or to identify poor workmanship and/or defects.
• Quotes and invoices from other contractors or professionals hired to rectify the unfinished work or assess the damages.

The success of your claim will depend on the strength of the evidence and the legal arguments presented. Consulting with an experienced construction attorney is crucial to ensure your rights are protected and that you receive fair compensation for the losses you have suffered due to the contractor’s unfinished work.