Legal Question in Construction Law in Pennsylvania

How to terminate contract prior to start

I signed a contract and paid a deposit on 7/5/07. Start/end dates were not on the contract, verbal start was 8/13/07. Contractor has had virtually no communication with me and now says he will start after 9/25/07. I told him I want to terminate the contract and retrieve my deposit minus some of his expenses (if receipts are provided). He claims deposit is spent, cannot refund it and will start when he can. I don't believe the money was spent on my project, no materials have been delivered. (He actually compares the deposit to a retainer for an attorney...) Can the deposit be used by the contractor in any way he sees fit? How can terminate the contract and get the deposit back?


Asked on 9/11/07, 11:14 am

1 Answer from Attorneys

Re: How to terminate contract prior to start

There should be a contract, but chances are he only used a 1-2 page Proposal which he then asked you to sign. You can cancel, and get your deposit back, but WHAT could he have spent money on if he has not started work? Job materials? YOU have the checkbook, so you, not he is in control, you need to put your foot down. Chances are good if he has not performed so far, he will not properly perform later, and you are better off getting another contractor, but you need to put EVERYTHING in writing. Write to him stating not only is his contract improper (check that out) but he promised to start work by a certain date and he should tell you when he will be done, which I assume he can not now do, so tell him he is in breach of contract, that you want your deposit back, and if he spent anything on materials, that you want him to drop off the materials, and show you the receipts or you expect your full deposit back in full in 3 business days. He probably won't do it, but DO NOT use him, get someone else, and sue him for the money. You may have trouble collecting it, but I would NOT let this guy work on my house. An attorney would help maximize the chance of getting your money back.

Good luck.

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Answered on 9/20/07, 8:54 pm


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