A friend of mine met a guy this summer who said he was a contractor and did remodeling work. In June she verbally agreed/began to use his services for a bathroom remodel. He had her sign his bid in July and she gave him over $2000 up front because he said he needed that. (This next part is the one she has the question about) On the bottom of the bid she signed it says "any disagreements will go through mediation" which she will pay for). Throughout end of summer, she contacts him and he is unable to come out due to other jobs words words words.  She told him she needed the work done by 2nd week August.(not in writing)  He did nothing. She has since asked for him to return he deposit. He refuses. Can she legally take him to small claims court or is she obligated to go to/hire mediation still b/c of the contract she signed. He did no work!?

Contact the state contractors board for the state this happened in. They should be able to help mediate this. 

Mary, does he have to be a licensed contractor for that to help? I don't think he is actually a "real" contractor. I looked him up online and saw he has a "F" rating on one of those referral sites with a similar complaint (except according to reviewer he actually did do the work, just extremely unprofessionally and then got argumentative when confronted)