I hired a contracted for a renovation that is still unfinished (15% left to go). After reviewing the invoices, I believe I will have overpaid by about $25,000 by the time the project is complete. He was supposed to remove materials that I purchased on my own. When looking at the draw schedule invoices, it does not appear he has removed them. For all tasks that deviated from the original draw schedule, there were change orders that I approved. When I pointed out the discrepancy to him, he is basically making excuses, saying that he used the money for other materials and tasks.
Has anyone dealt with a similar situation? What did you do to recover the overpayment? Should I try to get what I can from credit card disputes? I’m imagine he’ll probably quit if I do this. Any tips appreciated.
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
4w
A key rule of working with contractors is you never want to get ahead of them with payments. Sadly, there are a lot of contractors that will simply leave if you paid them 90% and they are 90% done. It is much better to have paid them 75% when they are 90% done. Always hang on to 10% until it is 100% done. With that in mind, you are in a delicate situation.
Hopefully this contractor is honest. If you treat them right, you might get it back. I would not get emotional. If you haven't already, create a spreadsheet that shows why you think you are $25K over and ask him to provide details if there were other purchases he made.
In the long run, possession is 9/10ths of the law. In a dispute, the odds you will recover this are very low.
Rental Property Investor · SE Michigan · Member since 2014 · 4k+ posts · 6k+ votes
4w
A key rule of working with contractors is you never want to get ahead of them with payments. Sadly, there are a lot of contractors that will simply leave if you paid them 90% and they are 90% done. It is much better to have paid them 75% when they are 90% done. Always hang on to 10% until it is 100% done. With that in mind, you are in a delicate situation.
Hopefully this contractor is honest. If you treat them right, you might get it back. I would not get emotional. If you haven't already, create a spreadsheet that shows why you think you are $25K over and ask him to provide details if there were other purchases he made.
In the long run, possession is 9/10ths of the law. In a dispute, the odds you will recover this are very low.
Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
4w
I have dealt with this and unfortunately it really depends on the contractor - some are honest and will reimburse you and others will not and keep the money.
As mentioned never want to let a contractor get ahead of you, yes it happens to the best of us and hopefully contractor steps up but doesn’t sound like they will.
If that’s the case not sure $25k is worth suing over but see possibly any complaint with local jurisdiction if they are licensed
Investor · Pacific Northwest · Member since 2026 · 538 posts · 300 votes
4w
Anne — I would not start with the credit-card disputes.
You still have 15% of the job left, which means you still have leverage. I’d use that before turning this into a fight.
First, freeze the money and rebuild the job on paper.
Original contract amount.
Approved change orders.
Materials you bought that were supposed to be deducted.
Every payment already made.
Work actually completed.
Amount legitimately remaining.
Then hand that reconciliation to him and ask one simple question:
Show me where my $25,000 went.
“Used it for other materials and tasks” isn’t really an answer if those materials and tasks were already part of the contract or covered by approved change orders.
I’d also have another GC or experienced construction person walk the project and put a value on what is actually left. You want to know whether “15% remaining” means $10K of work, $30K of work, or $50K of work before you make your next move.
If your numbers are right, I’d give him three reasonable ways out:
Credit the overpayment against the remaining contract balance.
Document legitimate additional costs that you actually owe.
Or refund the difference.
I would not send another dollar until that reconciliation makes sense.
And because you’re in Florida, I’d get serious about lien releases too. Before additional/final payments, make sure the contractor, subs and suppliers are properly accounted for. Paying the GC does not necessarily protect you if someone below him hasn’t been paid. Florida has specific statutory progress and final lien-release forms for exactly this reason.
The credit-card dispute is a backup weapon. I wouldn’t fire it while he’s still on the project unless you’ve decided the relationship is over. Check your issuer’s deadlines now so you don’t lose the option, but preserve it while you try to finish the house.
If he refuses to reconcile the numbers or walks, then the conversation changes: document the unfinished work, get replacement bids, follow the termination language in your contract, and talk to a Florida construction attorney.
You can also file a DBPR complaint if he’s licensed, but DBPR is disciplinary — it does not act as your lawyer and recover the $25K for you.
Right now I wouldn’t assume the money is gone.
You still have an unfinished project and an unexplained ledger.
Make him reconcile the ledger before you let either one disappear.
