How to Handle a Bad Contractor - Beach Cities Restoration

How to Handle a Bad Contractor: A Home Improvement Guide for Property Owners

Hiring the wrong contractor can cost you time, money, and peace of mind. Whether you’re a homeowner planning a renovation or a business owner managing commercial upgrades, contractor problems can happen anywhere—from Orange County, CA to small towns across the U.S.

At Beach Cities Restoration, general contractors based in Laguna Niguel, we’ve seen what happens when contractors don’t take their responsibilities seriously. This guide will help you understand how to protect yourself and what to do if you’ve hired the wrong person for the job.

Step 1: Verify if a License Is Required in Your State

Each U.S. state sets its own rules about when a contractor needs a license. For example, as of 2025, California now requires a contractor’s license for any job worth $1,000 or more (up from $500). Most states have similar thresholds ranging between $500 and $5,000.

To Do:

Look up your state’s Contractors Licensing Board or Department of Professional Regulation
Confirm whether a license is required for your type of home improvement or construction work
Check if wildlife removal, electrical, plumbing, or structural work also requires separate permits or certifications

If a license is required and your contractor does not have one, you may have grounds to file a complaint or pursue a refund.

Step 2: Look Up the Contractor’s License, Insurance, and Bond

Licensed contractors are often required to carry:

A state-issued contractor license
General liability insurance
A surety bond (used to reimburse customers if the contractor breaks laws or contracts)

Use your state’s contractor board website to look up the business and see if the company is:

Active and licensed
Covered by a valid bond
Properly insured

If any of these are missing or expired, you may be dealing with an unqualified or unlicensed contractor.

Step 3: File Complaints Through State and Federal Channels

Even if your contractor is licensed, you have every right to report unethical behavior, missed deadlines, or uncompleted work.

Common Agencies to Contact:

Your State Contractor Licensing Board
Your State Attorney General’s Consumer Protection Division
The Better Business Bureau (BBB)
Your local building department (especially if permits are involved)

These agencies can investigate fraud, unlicensed activity, and poor workmanship.

Example: In California, you’d contact:

Contractors State License Board: https://www.cslb.ca.gov/
California Attorney General: https://oag.ca.gov/consumers

Look up the equivalent in your state using search terms like “YourState Contractor Licensing Board” or “YourState Consumer Protection Complaint.”

Step 4: Leave Honest Public Reviews to Warn Others

Leaving reviews is one of the fastest ways to get a company’s attention—and protect other consumers from falling into the same trap.

Tips When Posting:

Use facts only (avoid emotional or defamatory language)
Include:
- Contractor’s full name and business name
- Summary of what went wrong
- Photos or documentation (blur out sensitive info)

Where to Post Reviews:

This also strengthens your case if you decide to pursue legal or financial action.

Step 5: Send a Final Refund Demand Letter

If you’ve paid a deposit or partial payment and the contractor is now ghosting, delaying, or violating your contract, send a clear and formal refund demand.

Include in Your Message:

A factual statement of breach (e.g. “The agreed start date has passed with no work done”)
The amount paid
A deadline (usually 3 business days) for refund
A list of specific actions you will take (complaints, bond claims, reviews)

Deliver this via email and follow up with a text or certified letter.

Sample Excerpt:

Dear [Contractor Name],
Based on our agreement, you were to begin work on [insert date]. That date has passed without any work completed.
You are not authorized to perform any further work on my property. I am requesting a full refund of my deposit, $[amount], by [insert deadline].
If I do not receive a full refund by [insert date], I will proceed with complaints to:
– [Your State] Contractor Licensing Board
– [Your State] Attorney General
– Your company’s bonding provider (if applicable)
– All major public review sites

Be polite but firm. Once a contractor sees you’re informed and taking action, many will respond quickly to avoid further issues.

Do Not Let the Contractor Resume Work

Once you’ve discovered serious red flags—especially licensing or contract violations—do not allow the contractor back on your property. Continuing work could further complicate your legal or insurance situation.

Final Word: Protect Yourself From the Start

Bad contractors exist in every state. But by doing your research upfront and knowing your rights, you can reduce your risk.

Before hiring:

Always verify the license and insurance
Get multiple bids in writing
Never pay more than your state’s legal upfront deposit limit
Read reviews on multiple platforms, not just the contractor’s website

Need a Contractor You Can Trust?

Beach Cities Restoration is a licensed general contractor based in Laguna Niguel, CA, serving Orange County homeowners and businesses with high-quality, code-compliant remodeling, repair, and construction services. We handle jobs the right way, the first time.

📞 Call Today: (949) 795-4170
🌐 Visit: beachcitiesrestoration.com