How Do You Handle Contractors Walking Off a Job?

Question

Hey BiggerPockets community,

One thing I always like to ask other investors is: have you ever had a contractor or sub walk off mid-project, and how did you handle it?

As a construction project manager, we ran into this on a duplex renovation we were managing for a client. The GC’s subs stopped showing up after demo. The GC wasn’t communicating clearly, and the project sat idle for nearly two weeks. For the investor, that meant holding costs piling up fast.

Here’s how we resolved it:

• Got on-site immediately to document status and secure the property.
• Started calling vetted backup contractors to step in for plumbing and electrical.
• Negotiated with the GC to either replace the missing subs or risk losing the contract.
• Within a week, new crews were in place, and we recovered most of the lost time in the schedule.

Got on-site immediately to document status and secure the property.

Started calling vetted backup contractors to step in for plumbing and electrical.

Negotiated with the GC to either replace the missing subs or risk losing the contract.

Within a week, new crews were in place, and we recovered most of the lost time in the schedule.

It wasn’t pretty, but it kept the project moving and prevented a major blow to the investor’s budget and timeline.

Curious to hear: Have you dealt with contractors walking off a job? What’s worked best for you to get things back on track?

Caleb Brown · Answer

This is exactly why you don't pay the GC upfront. So many shady and bad contractors out there

Lipa F. · Answer

The best thing is to make sure you hire the right people in the first place by getting  referrals

Peter Mckernan · Answer

Good job resolving it like you did! If this happens to you I would just go out there and look for another one to finish the job. There are a lot of contractors out there and if one walks off the job, get another one like you did.

The old GC, I would see what they have done and what you have paid for to get the work done so far. If you are even on work and payment great! If you are short on work and paid more then you'll need to have good records showing where they stopped and what was paid for by you. There are some ways to recoup your money for example his bond, asking for payment, and of course court.

Alan F. · Answer

Why did the contractors walk off the job?

Ron Dancy · Answer

Did you pay the GC upfront before they started working?

Also, did you check references, licenses (If necessary), insurance carrier, surety bonds, MEP subcontractors credentials as well?

Deborah Wodell · Answer

This is such a real scenario, and unfortunately, more common than people think. When subs disappear, time and money bleed fast. I’ve seen it happen where the project stalled for weeks because the investor didn’t have backup contractors lined up.

I think your approach of documenting immediately and stepping in with vetted backups is spot on. My advice for investors is to always have at least two reliable subs in your back pocket for each trade. It may feel redundant at first, but when things go sideways, it’s the difference between a small delay and a disaster.

How Do You Handle Contractors Walking Off a Job?

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