Quote:
Originally Posted by TCRSO
question: Do you have anything in writing? If it is just an estimate and they have started work, attempting to terminate could result in the filing of a mechanic's lien.
Never enter into any type of home improvement agreement without a written agreement of all the terms. This should include a start date a completion date and something known as an "abandonment clause". The abandonment clause should provide that if there is no substantial work (which should be defined) for a specified time, that the contractor will be deemed to have abandoned the project and that the agreement is automatically terminated. The termination is normally activated by written notice (e.g. certified mail return receipt). Also, the agreement should provide that no subcontractor shall be used without the written consent of the owner. The mechanic lien laws are complex. Don't agree without educating yourself.
It is not uncommon for some contractors to start work on multiple projects, thereby locking in the owners and subjecting them to mechanic's liens if they attempt to terminate.
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I agree with having a written contract with a stated completion date. But, all of this can be avoided by just refusing to pay for work that has not been done. If it is a large project, I may agree to a partial payment, based on completed work, but only if they will accept a credit card. But, I would never pay any money for work that has not been performed. If they can't finance their work, I'll find another contractor who will.