Paid contractor agreed amount but wants more? What to do?

[Peter Fokas]

Hired a contractor to some improvements to rec room in basement for 2500. Gave him deposit of 1000 to start. He kept asking for weekly payments even though we agreed to pay balance when project finished. We had some issues with him so felt better to end this working relationship. We still paid him the full amount of 2500 as agreed and told him he did not have to finish the job. Now he comes back saying he wants another 2700 for work he did that was outside the scope of original contract. Any recommendations on how to handle this?

[Martin Scherer]

Written contract? Signed by both of you?  Licensed?  Insured? Did you make changes to the original agreement?  Were those changes  in writing?  Did he discover issues that were covered up by a previous owner?  Did you have a written agreement that included "found" issues and were the changes written as a change order?  By found I mean like problems/issues behind a wall, usually fire or electrical and plumbing problems.

Has he liened your property?  What is your plan if he does?

Treat your business like a business and forget the age old handshake method there are too many people waiting to take your money.