Contractor Issues

How to Handle Contractor Abandonment in Texas

Texas Trades & Homes, TX
A Texas Home Stands Unfinished

Texas Projects: When Contractors Disappear Mid-Job—How to Prevent It and What to Do Next


Few things sink a home project faster than a contractor walking off the job. In Texas, project abandonment isn’t just frustrating—it can be a breach of contract and, in some cases, a violation of the Texas Construction Trust Fund Act. With clear records and the right steps, you can protect yourself and recover faster.
The short version

  • Abandonment = breach. Extended no-shows, silence, or tool removal are red flags. Document everything.
  • Texas procedures apply. Most residential disputes follow the Residential Construction Liability Act (RCLA). That means formal notice, an inspection opportunity, and a settlement/repair window.

  • Hold retainage. By law, homeowners must hold 10% during the job and 30 days after. If you terminate or the contractor abandons, you must notify subs within 10 days.
  • Trust funds are serious. Payments you make are trust funds. Misuse can be a crime. Track every draw and receipt.
Why contractors walk off jobs in Texas

  • Cash flow problems. When progress payments outpace actual work, funds run dry.

  • Weak paperwork. Vague scopes and no change-order rules create disputes.

  • Scheduling breakdowns. Missed inspections, delayed permits, and poor coordination spiral into abandonment.
How to prevent abandonment before work starts

  • Write it down. Scope + change-order rules, inclusions, exclusions, and “if-found” pricing.
  • Tie payments to progress. Use milestones like passed inspections—not calendar dates. Retain 10%.
  • Use lien waivers. Conditional waivers with each payment; final unconditional at completion.
  • Verify licenses. Electrical, plumbing, HVAC—check TDLR and TSBPE. Keep screenshots.
  • Plan permits. Decide upfront who pulls which permits and when.
If your contractor stops showing up

  1. Secure your site. Photos + inventory of materials on hand.
  2. Send written notice. Default/cure per your contract (certified mail).
  3. Serve RCLA notice. List defects/incomplete work; allow access; wait statutory timelines.
  4. Freeze payments. Hold the 10% retainage and stop further draws.
  5. Notify subs within 10 days. Required under Texas Property Code.
  6. Document the money trail. Match checks, invoices, and lien waivers.
  7. Re-scope + re-bid. Use a third-party estimate and share clean documentation with new bidders.
  8. Escalate wisely. Mediation, arbitration, or attorney help depending on your contract and the breach.

Documentation is your best tool
  • Signed contract + change orders
  • Draw schedule + payment receipts
  • Photos by date and percent complete
  • Permits, inspection results, notice letters
  • Lien waivers from every sub/supplier
Make organization your advantage with TradeCrews

When projects stall, clean paperwork puts you in control.
  • Property Journal (TradeCrews): Upload contracts, draw requests, photos, permits, and waivers. If you need to re-bid or bring in counsel, export a complete packet in seconds.
  • Jack's Report™: Jack reviews your Journal to highlight percent complete vs. payments, missing lien waivers, and open inspections—giving you the facts for replacement bids or legal review.
Quick checklist
☑️ Default/cure notice sent per contract
 ☑️ RCLA notice served and tracked
 ☑️ 10% retainage held + 30 days post-completion
 ☑️ Sub/supplier notices sent within 10 days
 ☑️ Ledger + waivers matched for trust-fund compliance
 ☑️ Re-scope + re-bid backed by clean records
 ☑️ Journal export + Jack Report™ attached to bids
Ready to protect your project and avoid chaos if a contractor disappears? Keep your records clean and your options open with TradeCrews.

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