Resolving Contractor Disputes: What Every Homeowner Should Know

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Resolving Contractor Disputes: What Every Homeowner Should Know

Imagine the following: you and your spouse just moved to the city of Jacksonville after your honeymoon to evade the expensive cost of living in California. From selling your old condo, you secured not only sufficient money for a new house in Florida, but some extra change because of the differences in pricing. After finalizing the completion of the home, you and the contractor determine a move-in date of July 16th. However, upon arriving with the moving truck and all your belongings, you discover a huge mess left behind at the home, with exposed pipes from the plumbing and various other appliances missing that are supposed to come with the house. The kitchen is nowhere near complete.

All the evidence points to a contractor’s failure to complete all the work in a timely manner, thereby missing the deadline that was agreed upon in the initial contract. In an attempt to resolve the issue, you discuss the matter with the contractor, but disagree about the deadline, stating that the work was to be completed by July 16th, but the new tenants were not supposed to move in until the month after. When explaining that you need to resolve these issues immediately, the contractor tells you that nothing can be done until the next month, breaching the contractual agreement and leaving matters open to dispute. At this time, you write a formal letter notifying the contractor of their noncompliance with the contract regarding the deadline. You mention that you will live elsewhere in the meantime until the project is completed no later than August 16th, exactly a month after the initial move-in date.

A month goes by, and nothing has been done. You decide to take legal action.

Filing a Contractor Dispute in Florida

The situation above highlights not only the importance of deadlines, especially ones in a contract, but the problems new homeowners can encounter in the event that the contract is breached and when the contractor has not fulfilled their responsibilities. For instance, the couple has had to spend the entire month living in a hotel because they are not from Florida and could not live with any family or friends. They also had to eat out every night as the cheapest hotel they could find had nothing but a refrigerator and a microwave. So, if filing a dispute against a contractor seems like the appropriate action to take, here is how it can be done:

In Florida, all allegations against contractors go through the licensing board, so it is imperative that property owners stack a pile of evidence that confirms the legitimacy of their case. Eventually, if approved, a hearing will be scheduled so that both parties have time to hire lawyers, gather additional evidence, and present it in the courtroom. Before filing the complaint, however, owners must be aware of the simple measures by which they can make their voices heard. Thus, filing complaints to the Florida Department of Business and Professional Regulation (DBPR) can be done either by mail or through a direct URL that assists with filing the dispute. 

Staying Away From Court

Taking legal action against a contractor can be a tedious process, so there are multiple other means of resolving issues with contractors besides filing actual disputes. The primary ways of going about conflict resolution without setting foot in the courtroom are arbitration and mediation. Arbitration is the appointment of an independent third party to settle a dispute between parties in disagreement. This third party must always approach the dispute without bias, reflecting zero ties to either party beforehand or leaving first-hand opinions outside the window of conflict. They ultimately act as the “judge” and will decide the case so as to achieve resolution. 

Mediation, on the other hand, is similar to arbitration in that the mediator is a third party who must be neutral, but they, more or less, serve as an unbiased representative of both parties who helps them arrive at a consensus on their own rather than making the call for them. Either way, arbitration or mediation are more convenient methods of settlement than the court process, taking far less time, reducing stress load, and still reaching some sort of outcome. Property owners should know that small claims courts manage contractor disputes if they seek a low cost for settling what should be a minute issue. 

Another alternative to court is the Right to Repair Act in Florida, which allows property owners and contractors the option to resolve disputes in a private manner. The focus of the act regards construction defects and protecting the rights to repair for property owners who especially want to avoid a court case. To exercise their right to repair, owners must file a notice of claim, providing reasons as to how there exists a defect. Within the notice, owners need to identify specific details about the defect so that contractors can inspect it and get to work on it immediately. The act, in general, is designed to make the repair as simple and manageable as possible for both parties. In turn, it prevents any ill feelings from either side and reasonably acknowledges the repair as a mistake for which the responsible party can compensate. 

Of course, these alternatives to filing a dispute should be merely considerations until property owners have, at the very least, brought the issues to the attention of the contractors. After, they must compose a letter detailing what the problems are, requesting settlement as soon as possible. On many occasions, the contractors responsible typically agree to these demands and work diligently to fix the issues and fulfill their part in the contract. 

Tips When Hiring Contractors

In order to prevent contract breaches, lengthy, exhausting court cases, and downright frustration, property owners must be aware of how to cover all their bases in the hiring process. They should prioritize finding those who work with the utmost professionalism when it comes to contractual agreements, fulfilling their duties, and ensuring owners are satisfied with the completed work. 

In Florida, for instance, contracts will always include the rights and responsibilities of both parties, detailing what contractors and property owners are each entitled to as well as what they are responsible for, respectively. If these terms and conditions are not met, contractor disputes are bound to occur. 

Property owners should initially ensure their contractors possess the appropriate licenses and insurance for contract work, as required by Florida law among all contractors. Otherwise, they could face jail time or substantial fines. Additionally, running quotes by one’s insurance company is a conservative way to make sure that the cost of repairs will proportionately reflect the appropriate amount to get the job done. 

Before proceeding with any contract work, researching behind-the-scenes information such as quotes, licenses, and looking out for red flags are necessary measures to take. So, it is in an owner’s best interest to do thorough research of the contractor and their company, discovering as much information as possible, especially regarding previous repairs, reviews, and other accounts, almost similar to a background check. 

Most importantly, property owners must read each and every word of the contract presented to them. They need to review all of their own rights and responsibilities as well as those of the contractor. Contracts should lay out all pricing, the amount of time the project will take, and any constituents of a breach of contract, or anything denoting noncompliance by either party. Knowing this extent of detail, whether needed in the long run or not, will at least protect one’s rights under a contractor’s federal obligation to perform their duties at the standards outlined by the contract. If these standards, for whatever reason, are not met, it then becomes probable cause to file a dispute. Hopefully, it never gets to this point.

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