People generally hire a construction company or professional (“Contractor”) for projects they can’t do themselves. Clients expect to receive professional-quality services. In many cases, they may have established specific expectations in their contract.
They might provide an image as a reference point for the final product. They might request certain specific materials. The client naturally expects that the Contractor will perform work which conforms to industry standards. Not all home repair or remodeling projects end well. Clients may feel deeply dissatisfied with the quality of work that they receive. They may question what rights they have.
Can clients withhold payment from Contractor over substandard labor?
Withheld pay can serve as leverage
Uncertainty about the quality of the finished product is one reason that clients usually do not pay in full for construction services when hiring a Contractor. They make a deposit. The contract that they sign usually designates a timeline for making the final payment.
After the work is done, the property owner should pay promptly. If the work is of poor quality, the property owner could withhold pay. They could then negotiate to have the company or professional. They can ask them to redo work or replace inappropriate materials.
The downside of withholding compensation is the risk of a mechanic’s lien. The Contractor denied payment in full can use the property as collateral for the remainder of their payment. They can ask the courts to impose a mechanic’s lien on your home. If the client and Contractor can’t settle the matter, it may ultimately lead to litigation by the Contractor for breach of contract for failure to pay the contract amount.
Contractors aren’t the only ones who can take legal action. Clients can also file a lawsuit against the company. They can hold the business or professional accountable for breach of contract or for a violation of the Ohio Consumer Sales Practices Act.
Litigation can take time to resolve. Most people Some people cannot wait that long for repairs to the property. They may get an estimate or hire another professional to complete or redo the work. They could then request that the Court award them the amount it takes to repair the Contractor’s shoddy work. The Court may reduce this amount by the amount withheld by the Client in their contact with the Contractor in a breach of contract claim.
Reviewing the communication about a project and the final project contract with a one of our experience attorneys can help frustrated homeowners.
