What to Do About a Bad Contractor. Know your rights under California law.
Comprehensive legal information about what to do about a bad contractor in California commercial and residential construction projects.
Comprehensive legal information about what to do about a bad contractor in California commercial and residential construction projects.
Overview
Comprehensive legal information about what to do about a bad contractor in California commercial and residential construction projects.
California’s construction-law framework protects owners, contractors, and subcontractors in different ways. Working through a claim, a defense, or a compliance question all require familiarity with the controlling statutes, deadlines, and procedures.
Steps for handling what to do about a bad contractor
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California construction statutes confer substantial rights on property owners and contractors.
Property owner rights
Owners have the right to construction work that meets building codes, the approved plans, and the standards in Civil Code § 896. Where the work fails to meet those standards, claims for repair cost, diminished value, and other damages are available.
Contractor rights
Timely payment is a contractor right, with SB 440 imposing 2% monthly interest on late payments and SB 61 capping retention at 5%. Licensed contractors additionally have mechanic’s liens, stop notices, and bond claims as remedies.
Key statute
How California Law Applies
The legal standards for what to do about a bad contractor are established by California statute, building codes, and case law. Key statutes include Civil Code §895 et seq. (Right to Repair), Civil Code §8400 et seq. (mechanic's liens), BPC §7031 (contractor licensing), and the new SB 440 and SB 61 provisions effective 2026.
The Legal Process
The typical California pathway is pre-litigation notice and inspection, followed by mediation, and finally litigation or arbitration if those don’t resolve the dispute. The exact route depends on claim type and the controlling contract provisions.
What Documentation Matters
Key paper trail items: the construction contract, change orders, payment records, inspection reports, correspondence, photos of defective work, building permits, and expert reports.
Frequently Asked Questions
How long do I have to file a what to do about a bad contractor claim?
The applicable deadline depends on the claim. Contract claims: 4-year limitations. Negligence claims: 3 years from discovery. Latent defects: 10-year statute of repose. Verify your specific deadlines with counsel.
Do I need a lawyer for what to do about a bad contractor?
Construction law has a lot of moving procedural parts and tight deadlines. An experienced construction attorney can evaluate the claim, satisfy notice and pre-litigation steps, and represent you in mediation, arbitration, or litigation.
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