Telling a scam from a bad job
Many construction disputes are about workmanship, delay, or changing prices, and they are handled as contract claims. Others look more like fraud, such as a contractor who collects deposits from several homeowners with no intention of doing the work, uses a fake or borrowed license, or invents material costs. New York City and several surrounding counties require home improvement contractors to be licensed, and New York law places specific rules on home improvement contracts and on how deposits are handled. Whether those rules were followed can matter a great deal to your remedies and, in clear cases, to whether a prosecutor takes an interest.
What to gather now
Collect the contract or estimate, any change orders, receipts and payment records, photos of the work at each stage, and every text and email with the contractor. Look up the contractor's license status with the city or county licensing agency, and check whether others have filed complaints. If the work is unsafe or incomplete, photograph it before any repair, and consider having another contractor or an engineer document its condition. Before you hire someone to finish the job, ask your lawyer how to preserve evidence of what was left undone. If the contractor offers to come back and fix things, talk to your lawyer before agreeing to new terms.
Routes worth comparing
The realistic routes vary with the amount and the facts, and can include a complaint to the licensing agency, small claims or civil court, a claim against a bond, or a criminal complaint where the facts show intentional theft. In New York City, a complaint about a licensed contractor may also open access to a city fund for some claims. Payment by credit card may allow a dispute with the card issuer. Our review covers the contract, the license situation, and what the contractor or its business actually has that could satisfy a judgment, so the time and cost of each construction scam remedy can be weighed honestly.
