What happens if a contractor is unable to finish the project?

In Texas, if a contractor is unable to finish the project, the contractor is responsible for completing the project or providing an alternative solution that is acceptable to the party who hired the contractor. The contractor must also return any portion of the payment that it has not yet earned. Depending on the contract, the contractor may also be required to pay for any losses or damages that the party who hired the contractor incurred as a result of the contractor’s failure to complete the project. If a dispute arises between the two parties, either party may seek resolution through arbitration or litigation. Arbitration is a process where the two parties present their arguments to a neutral third-party who makes the final decision on the dispute. Litigation involves filing a lawsuit with the court and having the court make a decision on the dispute. In either case, the contractor may be ordered to pay damages to the other party or to complete the project. The court may also order the contractor to pay attorney fees and court costs if the party who hired the contractor is successful in the dispute. Ultimately, it is in the best interest of the contractor to resolve the dispute in a timely manner to avoid further costs and delays.

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What happens if a contractor is unable to finish the project?

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