What to do if a construction company took an advance on work that needed to be donebut it never performed the work?

UPDATED: Oct 16, 2011

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What to do if a construction company took an advance on work that needed to be donebut it never performed the work?

I own a small business. I got into a contract with a construction company to work on our parking lot. They took a $2500 advance and gave us the runarounds and never came once to start the job. After getting tired of the excuses he finally agreed to refund the money and gave us a check. Bank told us that the account didn’t have sufficient funds. We filed a case against him and they couldn’t serve him as he had moved. We filed a case with the construction contractors board and now we found out he wasn’t bonded. What can we do now to get our money back?

Asked on October 16, 2011 under Business Law, Oregon


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If presumed contractor took advantage of you for $2,500 for an advance where work was never done, the $2,500 was repaid but the check did not clear and it appears that the maker has disappeared, you need to do the following:

1. report the company and the person you were dealing with to your state's contractor's licensing board.

2. bring a small claims action against the company and the individual for the $2,500, accrued interest and any statutory penalties for passing a bad check.

Good luck.

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