Common Legal Questions Contractors Ask
Straightforward answers to the legal questions contractors run into most often — written in plain language, not legal jargon.
What if a homeowner refuses to pay?
You have several options. Start by reviewing your contract and documenting the completed work. A written payment request — or a demand letter from an attorney — often moves things forward. Depending on your state, you may also have the right to file a mechanic's lien against the property. Because the rules vary by state, getting legal guidance early is usually the best move.
Do contractors need written contracts?
Yes — always. Verbal agreements are difficult to prove and leave too much room for misunderstandings. A written contract protects both you and the homeowner by setting clear expectations for scope, price, timeline, and payment. If a homeowner refuses to sign a written contract, that's a warning sign worth taking seriously.
What happens if a homeowner disputes a change order?
If you have a signed change order, you're in a much stronger position. Without one, it becomes your word against the homeowner's — and that's a difficult dispute to win. Going forward, get every scope change in writing and signed before the work starts. If you're already in a dispute, an attorney can help you understand your options.
When can contractors file a mechanic's lien?
Generally, you can file a mechanic's lien when you've performed work or provided materials on a property and haven't been paid. The rules — including deadlines and notice requirements — vary significantly by state. Missing the deadline typically means losing your lien rights entirely, so it's important to act quickly and get legal guidance specific to your state.
When should contractors talk to an attorney?
Earlier than most people think. Many contractors wait until a dispute has escalated before seeking legal advice — by which point some options may already be off the table. Having access to an attorney through a membership like LegalShield means you can ask questions early, review contracts before you sign, and get guidance before a situation becomes a crisis.
Is a text message or email a legally binding agreement?
In many cases, yes — written communications like texts and emails can be used as evidence of an agreement. But they're rarely as clear or enforceable as a properly written contract. If you've been relying on informal communications, save everything. And going forward, formalize your agreements in a written contract.
What's the difference between small claims court and a mechanic's lien?
A mechanic's lien is a claim against the property itself — it can prevent the homeowner from selling or refinancing until the debt is resolved. Small claims court is a legal proceeding where a judge decides whether you're owed money. Both can be useful depending on the situation. An attorney can help you decide which approach makes more sense for your specific case.
Have a Question That's Not Listed Here?
The best way to get an answer specific to your situation is to talk to an attorney. LegalShield gives contractors affordable access to a provider law firm — so you can ask questions without worrying about a $300/hour bill.