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logan101
Jan 27, 2012, 11:16 PM
If you sign a contract with contractor to build a cement slab or any contract signed by both parties home owner and contractor. If one of the parties (home owner) breaks contract without notice or reason and a draw has been issued. Should contractor return money after one weeks work. Does contractor then bill for the whole contract or money lost and spend and work lost.

ma0641
Jan 28, 2012, 10:08 AM
Depending on the state and contract language, as a contractor, I would keep the draw as a minimum. A contract is legally binding, assuming it is worded properly and signed by both parties. Are you the contractor or the homeowner? What are the circumstances involving the dispute?

Fr_Chuck
Jan 28, 2012, 09:36 PM
Normally there are other costs for the contractor beyond just the one week work, planing, scheduling and more. Plus the contract should anyway, spell out damages that either party could get if contract is broken.

But any draw would be keep and any and all charges taken out, and then and only then, if there is additional money in the draw over the costs and money lost, it would be returned.
It is even possible that the draw may not even cover damages and they could sue for additional damages.

AK lawyer
Jan 29, 2012, 07:02 AM
As I understand the question, you are the contractor. You received a draw before the work was finished, and you want to know how much you are owed when the homeowner breached the contract.

What is the nature of the breach ("broken contract")?

Generally, the measure of damages is the contract price less the amount of the draw. The homeowner might also be entitled to deduct the cost of the labor and materials you saved by his breach. Since it is concrete work, I assume the concrete was not poured. So you would have saved the cost of the concrete delivery, plus the concrete finishing and clean-up labor.