Hiring a contractor to start a home reno is exciting—until they suddenly go radio silent halfway through the project.
If this has happened to you, understand you’re not alone. Ghosting is an unfortunate yet common issue many homeowners experience at some point in time.
“Ghosting is almost never the first thing that goes wrong on a project. It’s usually the last and a result of a communication failure that starts long before the silence does,” explains Michael Gerstle, partner at Gerstle Snelson, LLP, a construction law firm in Dallas.
By understanding the typical reasons contractors vanish and knowing how to handle it, you can protect your rights, finances, and sanity.
Why do contractors ghost homeowners?
Most contractors don’t start a project intending to leave you hanging.
“In my experience, ghosting is usually a symptom of a larger problem. For example, they’ve misquoted the job and run into cash flow issues or encountered a problem they don’t know how to solve,” says John Salvatore Gelfusa, president and CEO at HomeWorks cgo Inc. in Macomb, MI.
Instead of having a difficult conversation with the homeowner, they decide to disappear.
Gerstile, whose firm represents both contractors and homeowners, has seen communication issues from both sides.
“It’s often a talented builder who’s a poor communicator. Sometimes when a project hits a snag or delay, going quiet feels easier than delivering bad news,” Gerstle explains.
On the homeowner’s side, the trouble usually starts before anyone breaks ground: a vague scope of work, no written timeline, and a handshake idea of what “finished” means.
“When those expectations don’t line up, the contractor can feel frustrated or attached and is likely to disappear,” Gerstle adds.
What to do if it happens to you
When a contractor goes silent, your first instinct may be to panic or lawyer up.
“While hiring an attorney might be required to preserve your rights, it’s not always necessary,” says Gerstle.
Instead of spending days calling and texting the contractor angry messages, focus on the following:
Document everything
A paper trail is your best friend in a dispute. If it isn’t in writing, then a jury or arbitrator will have to decide whose version of events—the homeowner’s or contractor’s—is more believable.
“Move every conversation to email or text, recap phone calls in writing, and take time-stamped photos of where the work stands,” Gerstle explains.
Check the contractor’s standing
Some states require contractors to have licenses—others do not.
If yours does, verify if your contractor is licensed and in good standing through your state’s contractor licensing board. Then do some research.
Social media can be a useful resource in determining if other homeowners have taken action against the same contractor and which path has been most successful.
“Whether that is filing a complaint with the licensing board or with a professional organization in which the contractor is a member, others have likely tried some of these approaches and may already be sharing their tales of failure or success on social media or online forums,” Gerstle says.
Send a written notice to the contractor
Every state is different regarding whether a written notice must be sent and what it must include.
“Some states have right to cure statutes, meaning the contractor has a right to inspect the issues and make repairs or complete the work within a specified time. Other states do not have such statutes,” Gerstle says.
Knowing what your state requires or allows will allow you to prepare a letter to meet the requirements of the statute while conveying to the contractor that you want the work completed.
In some situations, you may need to retain counsel to either preserve your rights or assist in working through the right-to-repair statutes.
“However, threatening to file suit in the notice letter may have the exact opposite effect that you intend—rather than gaining the contractor’s attention, it may scare them off completely,” adds Gerstle.
Understand your rights and when to walk
Terminating the contract is an option, but you should weigh the pros and cons carefully before going this route.
If the contractor is not responding at all—truly ghosting you—termination after written notice may be your only option.
“Many times, contracts spell out what you need to do to terminate a contract, whether that involves giving additional written notice or meeting specific criteria. It is important to read the contract carefully before terminating,” says Gerstle.
Also, if you live in a state with a right to repair statute, the statute may impose additional requirements, like mediation, before or after termination.
If the contractor has responded, but you do not like the response, you should consider whether terminating the contract will make your life easier or harder.
“While not ideal, sometimes it is easier to work with a contractor to complete the work than to terminate it and then face increased costs and delays to bring on a new one,” Gerstle explains.
How to prevent this issue in the first place
Fortunately, there are steps you can take to reduce the risk of a contractor ghosting, including:
Opt for milestone-based payments
Tie each payment to a completed, inspected phase of work rather than the calendar. Otherwise, the contractor may be less motivated to stick to the schedule and perform their job as they promised.
Be mindful of the deposit
Keep your deposit modest and try not to pay a deposit that is disproportionate to the overall contract value.
If you’re selecting expensive finishes, for example a large upfront deposit with which the contractor will purchase the materials might be necessary.
However, there are opportunities, such as making sure title transfers to you when the expensive materials are delivered to the property, to leverage your deposit.
“In many instances, there is little proportion between the size of the deposit and the overall budget. In those situations, you should beware of paying too much upfront as it gives up your leverage to make sure the contractor finishes its work,” Gerstle explains.
Implement retainage
Hold back 10% of the total cost until the job is fully complete. That last check can keep a contractor accountable and motivated to finish.
“In some states, it’s also required that owners hold back a certain percentage of each payment drawn as ‘retainage,’ says Gerstle.
Don’t pay in cash
“The best advice I can give having both lived this personally and seeing it time after time in my litigation practice, is to never use cash to fund a project,” says Jacqueline Salcines, owner and founder at Jacqueline A. Salcines, PA in Coral Gables, FL.
Even if you have the cash, get a loan. You don’t have the necessary safeguards in place like banks do.
“For example, banks will require signed and notarized releases from all the subs prior to allowing the contractor to make a draw and get paid. This removes the possibility of any subs filing liens against the property due to nonpayment,” Salcines explains.
Outline a defined scope and timeline
Spell out what’s included in the scope of work as well as a start date, and completion date.
“Leaving the schedule blank or not having a defined completion date hands control of the project’s schedule to the contractor,” Gerstle explains.
Ask for proof of insurance and lien waivers
Require proof of a current contractor’s liability insurance policy and get a lien waiver with each payment you make.
“In some states, there are pre-set forms for lien waivers and protections for homeowners against unpaid subcontractors and suppliers if the owner withholds a certain percentage of each draw request,” Gerstle explains.
Since each state slightly different, check the laws for the state in which your property is located to determine how to proceed.
Request warranties and permits
Get written warranties on workmanship and materials, habitability, and repairs.
Note that not all warranties are created equal, and not all warranties provide the same warranty for every part of the project.
“Some contractors offer two-year warranties on HVAC systems, six years on structures, and one year on workmanship. If your contract does not provide a warranty or is vague about what is covered and for how long, consider inserting a warranty obligation that fits your needs,” Gerstle explains.
