Guides / Contractor refunds

How to demand a refund from a contractor

When a contractor takes a deposit and disappears, walks off a half-finished job, or does work that does not meet the contract, a clear written demand is usually the first step toward getting your money back, and the one that courts and licensing boards expect to see.

1. Gather the contract and your proof

Find the written contract or estimate, change orders, receipts, canceled checks or card statements, texts and emails, and dated photos of the work. Make a simple timeline: when you signed, what you paid, what was promised and by when, and what actually happened. If you paid by credit card recently, you may also be able to dispute the charge with your card issuer.

2. Check the contractor’s license and your cancellation rights

Look the contractor up with your state or local licensing board. Many states require licenses for home improvement work, and some have recovery funds that repay homeowners when a licensed contractor fails to finish. If you signed the contract at your home, the FTC’s Cooling-Off Rule and many state laws may give you three business days to cancel, and some states set limits on how big a deposit can be.

3. Send a written demand with a firm deadline

Say what the contract required, what went wrong, and exactly what you want: a refund of a specific amount, completion of the work by a date, or repairs. Give a reasonable deadline, often 10 to 14 days, and say what you will do if it passes (file with the licensing board, dispute the charge, or file in small claims court). Keep the tone factual. Send it by certified mail with return receipt, and also by email or text, so there is no doubt they received it.

4. Protect your home from liens

Unpaid subcontractors and suppliers can sometimes file a mechanic’s lien on your property even if you paid the main contractor. Ask for lien waivers before any final payment, and check your county records if you are worried. Do not pay a contractor in full before the work is done.

5. Escalate if they do not respond

File complaints with your state licensing board, your state attorney general’s consumer protection office, and your local Better Business Bureau. If the amount fits your state’s limit, small claims court is often the fastest way to get a judgment; our small claims demand letter guide explains the last letter to send before you file.

What your letter should include

• Your name, the job address, and the contractor’s business name and license number
• The contract date, price, and what work was promised by when
• What you paid, when, and how
• What went wrong, with dates (work not started, abandoned, or done poorly)
• The exact remedy you want (a refund amount, completion, or repairs) and a deadline
• What you will do if they do not respond, plus a list of the copies you enclosed

Keep a copy of everything you send, and note the date you sent it.

Sample letter

Adapt this to your situation. Replace everything in [brackets] and remove anything that does not apply.

[Your Name]
[Your Address]

[Date]

[Contractor Business Name]
[Contractor Address]
License #: [License Number]

Re: Demand for refund, [type of job] at [job address]

Dear [Contractor Name],

On [date], we signed a contract for you to [replace the roof / remodel the bathroom] at the address above for $[total]. I paid a deposit of $[amount] on [date] by [check #1234 / credit card]. The contract said work would begin by [date] and be finished by [date].

[Since then, no work has been done, and you have not returned my calls or texts since (date).] / [The work stopped on (date) with the (tile, drywall) unfinished, and the work that was done has these defects: (list).] Photos and copies of our messages are enclosed.

I am asking you to refund $[amount] by [date, about 14 days from today]. [Or: finish the work as the contract requires by (date).]

If I do not hear from you by that date, I will file a complaint with the [State] contractor licensing board and the attorney general’s office and file a claim in small claims court for the full amount plus court costs.

Sincerely,
[Your Name]
[Phone] · [Email]

Frequently asked questions

Can I get my deposit back if the contractor never started?

Often, yes. If the contractor took money and did no work, that is a basic breach of the contract, and some states treat failing to start after taking a deposit as a licensing violation or even fraud. A written demand, a licensing complaint, and small claims court are the usual steps.

Should I hire another contractor to finish the job?

You may need to, but document everything first: photos, a list of unfinished or defective items, and written estimates from the new contractor. Those estimates help show your damages if you go to court.

What if the contractor was not licensed?

Report them to your state licensing board. In some states, an unlicensed contractor cannot sue you for payment and may have to return what you paid, but the rules vary, so check your state’s law or ask a legal aid office.