Deposit, No Written Contract, and a Lien Threat
A licensed roofing contractor gives a homeowner a verbal proposal to repair a leak around a chimney for $9,800. The homeowner pays $4,000 cash as a deposit. No written contract, no scope, no start date, and no county permit are provided. The contractor starts work, finds extensive dry rot, and demands an additional $4,500 before continuing. The homeowner refuses and asks for a written change order. The contractor stops work, leaves the roof open, and tells the homeowner he will file a mechanic's lien unless paid the full $14,300. The homeowner files a complaint with the DCCA. The contractor is licensed and insured but has no written contract. The homeowner has photos of the open roof and the contractor's text messages demanding payment.
1. Identify the licensing and consumer-protection problems in the contractor's conduct.
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The contractor failed to provide a written contract with scope, price, payment terms, start and completion dates, and a change-order procedure. For a residential roofing job of this size, that is a serious consumer-protection and licensing problem. He also started work without the required county permit and left the roof open when the dispute arose, creating a safety and property-damage risk. Demanding $4,500 without a written, signed change order and threatening a mechanic's lien to pressure payment may constitute an unfair or deceptive practice. The lien threat is especially problematic if the amount is disputed or the required lien notices and deadlines are not met. The DCCA complaint can lead to investigation and discipline.
2. What should the contractor have done when the dry rot was discovered, and what are the homeowner's likely remedies?
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When dry rot was discovered, the contractor should have stopped work, documented the condition with photos and a written description, and given the homeowner a written change order stating the extra cost, scope, and schedule. He should not have proceeded until the homeowner signed. If the homeowner refused, the contractor could complete only the original written scope or terminate under the contract terms. The homeowner's remedies include filing a DCCA/RICO complaint, seeking restitution of the deposit for incomplete work, requiring correction, and pursuing civil claims. The board can discipline the license and order restitution. The contractor should preserve evidence and avoid self-help lien threats.