How do I review a renovation contractor’s jobs where clients are still disputing the bill?

Begin with the list. For each dispute, ask for the contract, change orders, invoices, messages and photos of the work. Then ask the seller to describe what happened in plain terms. Compare the story to the paperwork. Notice whether the problem is about scope, quality, delay or price, because the cause suggests the fix.

Next, find out where each dispute stands. Has the client threatened a claim, contacted a lien or consumer office, or hired a lawyer? Has the company offered a settlement? Your lawyer can tell you what each stage could mean for a buyer, and whether the dispute stays with the seller or follows the company.

Finally, consider how the sale terms might protect you. Options include having the seller keep responsibility, holding back part of the price, or excluding certain jobs. Your accountant can help you see how unpaid amounts affect receivables. Also ask how many disputes the company has had over several years, so you can see whether this is a pattern or a rare event. Ask whether the contractor has ever lost a dispute, and what it cost. An honest answer, with details, says a lot about how the owner deals with trouble. Ask your insurer whether the company’s coverage responds to any of these complaints, and note which ones involve workmanship rather than price.

Key takeaways

• List every disputed job and read the full file for each.
• Find out whether any client has threatened a claim.
• Ask your lawyer how the purchase terms should treat open disputes.