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

• 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.
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• 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.

• Cash flow problems. When progress payments outpace actual work, funds run dry.
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• Weak paperwork. Vague scopes and no change-order rules create disputes.
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• Scheduling breakdowns. Missed inspections, delayed permits, and poor coordination spiral into abandonment.

• 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.

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.
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• 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

• 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.