When a conflict arises with a contractor, you have several options.
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EASIEST NO COST |
Kitchen table conference or phone call between you, the homeowner, and contractor. Prepare by looking at your contract. Find any paper records that are important. Bring to the table family members and others. Pick people who have been involved in talking with the contractors. Write down notes in advance so you won’t forget to discuss something important. Listen carefully if the contractor explains something. Even though you are not an expert, you can offer suggestions. You can also offer ideas that other people suggest. If something has made you angry, have this discussion after you have cooled off. Name-calling, tears or other expressions of emotion make others uncomfortable. If others are uncomfortable, positive results and solutions are less likely. |
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EASY LOWEST COST |
Mediation. A neutral, third person helps the parties to
Time: Avg., 1-3 hours within one week of dispute. Several sessions may be required. Cost: Avg. $125-300 Note: Mediation usually works best when the disagreement is still fresh. |
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INFORMAL SOME COSTS |
Arbitration. During an arbitration, a neutral person:
In Maryland, one option is arbitration. Arbitration is a process where the parties who have the dispute agree that a neutral third party can decide the outcome. The arbitration may be "binding". "Binding" means that the parties also agree that the decision will be final and will not be appealed to a court. This must be agreed upon before the arbitration starts. Time: 2-10 hours; may take several weeks or more to arrange if there are few arbitrators in your area. Cost: Avg., $300+ (If you live in an area that has very few arbitrators, then you may have to pay the travel expenses for an arbitrator to come to your area.) Read the Law: Maryland Uniform Arbitration Act, MD Code Courts & Jud. Proc. 3-201 et seq. Note: The American Arbitration Association provides more in depth information about arbitration on their website. |
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MORE FORMAL SOME COSTS |
Filing suit in Small Claims Court. If a claim is $5,000 or under, you may want to represent yourself and file suit in small claims court. Prepare by reading the contract. Be ready to point out where the contractor failed. Bring a copy of the signed contract for the judge. Bring any witnesses or papers that prove your point. If pictures would help to describe the problem, bring them. Take notes on the problem and be ready to explain carefully
Cost: Service of process fees average about $40 per person to be "served." See the list of court fees Time: Depending on the county, the small claims process on average can take between two to six months. Sometimes it takes longer. |
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MOST FORMAL MOST COSTLY |
Hire a business lawyer for negotiation and/or to take the case to court. Parties hire attorneys to negotiate for them. Direct communication between parties is difficult or prohibited if they are represented by a lawyer. The end result in court is a judge’s decision. Time: May take months or years for formal fact-finding, trial and decision. Cost: Avg. $500-3,000 |