Consumer Letter Template
Contractor Non-Performance Demand Letter (Free Template + State Home Improvement Laws)
You hired a contractor. They took the deposit. Then they stopped showing up, did defective work, or disappeared entirely. This letter cites the state Home Improvement statute, the state UDAP statute, and (where applicable) the contractor-licensing board — the four-track demand contractors actually respond to.
The letter
Copy, customize, send.
[Your Full Name]
[Project Property Address]
[City, State ZIP]
[Phone] [Email]
[Date]
[Contractor Legal Name + DBA]
[License / Registration Number — if any]
[Business Address]
[City, State ZIP]
Sent via certified mail, return receipt requested
(Copy also emailed to [contractor email] for the record.)
Re: Demand for Performance or Refund — [Project Description], [Property Address]
Dear [Contractor Name]:
I am writing to demand (1) completion of the contracted work or, in the alternative, (2) refund of the specified portion of payments already made, pursuant to our contract and the [State] consumer-protection regime governing home improvement contractors.
Contract recitation:
• Contract date: [Date]
• Scope of work (per contract): [Brief, quote contract language]
• Total contract price: $[Amount]
• Payment schedule (per contract): [Summary]
Payment history:
• [Date] — $[Amount] — [milestone / phase]
• [Date] — $[Amount] — [milestone / phase]
• [Date] — $[Amount] — [milestone / phase]
• Total paid to date: $[Total]
Specific factual breach:
[Pick all that apply. Be specific with dates.]
• Work not done: [Describe scope completed vs. scope contracted; date of last activity on site]
• Work done defectively: [Itemize defects; reference plans/spec/code as applicable]
• Permits not pulled: [Required permits per local code; date deposit taken vs. permit deadline]
• Materials paid for but not delivered: [Itemize]
• Communication: [Last response from contractor; dates of unanswered calls/emails]
License / registration status: [Verified [Date] at [state board URL]. Status: [Active / Expired / Unregistered]. Screenshot enclosed.]
Legal basis:
1. [If contractor licensed/registered] Your conduct violates [State] Home Improvement statute:
• California: Bus. & Prof. Code §§ 7159 (contract requirements), 7107 (abandonment), 7113 (failure to complete in accordance with contract). Deposit cap: $1,000 or 10% of contract price, whichever is less.
• New York: Gen. Bus. Law Art. 36-A (§§ 770–776). All pre-completion payments must be deposited in a NY trust account within 5 business days or be bonded (Lien Law § 71-a).
• New Jersey: N.J.S.A. 56:8-1 et seq. (Consumer Fraud Act) + N.J.A.C. 13:45A-16 (Home Improvement Practices). Any HIP violation = per-se CFA violation = treble damages + attorney's fees.
• Maryland: Md. Code Bus. Reg. Title 8 (MHIC). Deposit cap: 1/3 of contract price. MHIC Guaranty Fund pays up to $30,000 per claim.
• Florida: Fla. Stat. §§ 489.126, 489.129, 489.140–.144. Taking >10% deposit and failing to pull permits within 30 days or start work within 90 days of permit issuance can be criminal. Recovery Fund up to $50,000/claim.
• Massachusetts: G.L. c. 142A + c. 93A § 9 (UDAP). Deposit cap: 1/3 of contract price or special-order materials cost, whichever greater. HIC Guaranty Fund up to $25,000.
• Illinois: Home Repair & Remodeling Act, 815 ILCS 513 + Consumer Fraud Act, 815 ILCS 505. Written contract required for work >$1,000; must deliver "Home Repair: Know Your Consumer Rights" pamphlet.
• Texas: Bus. & Com. Code § 17.41 (DTPA) + Property Code Ch. 27 (RCLA). 60-day pre-suit notice required under DTPA § 17.505 and RCLA § 27.004.
2. [If contractor unlicensed] California Bus. & Prof. Code § 7031 bars an unlicensed contractor from suing for any compensation and entitles the consumer to recover all sums paid by disgorgement (1-year statute of limitations from completion). New Jersey: unregistered contractor = per-se CFA violation = treble damages + attorney's fees. Maryland: unlicensed contract is void + criminal misdemeanor. Florida: unlicensed contracting under § 489.127 is a misdemeanor (felony if state of emergency).
3. State UDAP — Independently, your refusal to perform constitutes an unfair or deceptive act under [Mass. G.L. c. 93A § 2; NJ CFA N.J.S.A. 56:8-2; Tex. Bus. & Com. Code § 17.46; Cal. Bus. & Prof. Code § 17200; N.Y. Gen. Bus. Law § 349; Fla. Stat. § 501.204; 815 ILCS 505/2].
Demand:
Within [14] days of receipt of this letter, either:
(a) Return to the project and complete the contracted scope of work by [Date Certain], with daily on-site presence and documented progress; OR
(b) Refund $[Amount, calculated as Total Paid minus reasonable value of work actually completed and minus the value of any materials installed], plus reimbursement for any payments I make to a substitute contractor to complete work that was within the original contract scope.
If you choose neither, I will pursue all remedies available, including:
• Complaint to [State licensing board: CSLB in CA, NJ DCA Verify HIC, MHIC in MD, DBPR in FL, Mass HIC Program] including a request for restitution and license discipline.
• [If applicable to state] Claim against the state Recovery / Guaranty Fund — up to $50,000 (FL CILB Recovery Fund), $30,000 (MD MHIC Guaranty Fund), $25,000 (Mass HIC Guaranty Fund).
• Civil suit for breach of contract + statutory consumer-fraud claim with multiple damages and attorney's fees.
• [In FL] Referral to local State Attorney for prosecution under Fla. Stat. § 489.126 if applicable.
• Defense of any mechanic's lien you may attempt to record against the property, including a petition to discharge and a counterclaim for willful exaggeration / slander of title (N.Y. Lien Law §§ 39, 39-a; analogous remedies in other states). Any mechanic's lien recorded by an unlicensed contractor is typically invalid (CA Civ. Code § 8400).
• FTC complaint at ReportFraud.ftc.gov.
Please send your response in writing to the address above.
Sincerely,
[Your Signature]
[Your Printed Name]
Enclosures: [signed contract; payment records; license verification screenshot; photos of completed / incomplete / defective work; any prior communications]This template is for informational use only. It is not legal advice and does not create an attorney-client relationship. Square-bracketed placeholders must be replaced with your specific facts. State law and procedural details vary; if your situation is urgent, complicated, or high-stakes, email info@imfrustrated.org for a free conversation with a volunteer attorney before you send it.
How to use it
A few things before you send.
- 1.Verify the license BEFORE sending the letter. Every state with a licensing regime publishes a free license-lookup. CA: CSLB Check a License. NJ: NJ DCA Verify HIC. MD: MHIC. FL: MyFloridaLicense. MA: Mass.gov HIC Lookup. Screenshot the result and attach — if the contractor was unlicensed at the time of contract, your remedies expand dramatically (CA § 7031 disgorgement; NJ CFA per-se violation; MD void contract; FL criminal exposure).
- 2.Send to the contractor's registered legal address (look up the registered agent on your state's secretary-of-state business search) — not just the job-site phone number. The certified-mail receipt at the proper legal address is what proves service for any subsequent state-board complaint or suit.
- 3.Be specific about the breach. "Work not done" is weaker than "As of [Date], the framing was complete but no drywall, electrical, or plumbing rough-in had been performed despite Milestone 3 being paid on [Date]." Specificity matters for state-board complaints, UDAP claims, and any small-claims action.
- 4.Calibrate the deadline to your state's pre-suit notice rule. Massachusetts Ch. 93A § 9 requires 30 days. Texas DTPA § 17.505 and RCLA § 27.004 require 60 days. If you might sue under those statutes, the demand must give the statutory minimum or you forfeit enhanced damages.
- 5.Pre-empt any mechanic's lien retaliation. Contractors who are about to be challenged sometimes file an inflated mechanic's lien on the property. The letter explicitly warns of the willful-exaggeration counterclaim (N.Y. Lien Law § 39-a is the model statute) and notes that liens by unlicensed contractors are typically invalid. The warning often deters the lien filing.
What the law actually says
Why this letter works.
A consumer whose contractor took a deposit and then abandoned, stalled, or did defective work generally has overlapping claims under four legal regimes, and a well-drafted demand letter invokes all of them. The first is straight breach of contract — failure to perform, anticipatory repudiation, and recovery of consequential damages plus the cost to complete with another contractor. The second is the state's Home Improvement statute — most populous states have specific consumer-protection acts that require a written contract over a dollar threshold, cap deposits, require licensing or registration display, and treat any violation as a per-se deceptive practice (New Jersey is the strongest example: any HIP violation triggers automatic treble damages and attorney's fees under the Consumer Fraud Act). The third is the state's general UDAP statute (Mass. Ch. 93A, NJ CFA, IL CFA, TX DTPA, CA CLRA, FL FDUTPA, NY GBL § 349, MD CPA) — several require pre-suit demand letters with statutory deadlines, and most provide multiple damages and attorney's fees. The fourth is the state contractor-licensing board — every state with a licensing regime accepts consumer complaints, and most can order restitution, suspend or revoke the license, or trigger payouts from a Guaranty or Recovery Fund.
Deposit caps are the single most-violated provision. California Bus. & Prof. Code § 7159(d) caps deposits at $1,000 or 10% of the contract price, whichever is less — and the cap must appear in 12-point bold type in the contract. Maryland and Massachusetts cap at 1/3 of contract price. New York doesn't have a flat cap, but all pre-completion payments must be deposited in a New York trust or escrow account within 5 business days or be bonded. Florida prohibits taking more than 10% if the contractor fails to pull permits within 30 days or start work within 90 days of permit issuance — and serial offenders can be charged criminally. Consumers whose contractor exceeded the cap have a leverage point even before getting to the breach claim.
Verifying the license is the highest-leverage pre-letter step. If the contractor was unlicensed at the time of contract, statutory remedies expand dramatically. California's Bus. & Prof. Code § 7031 is the most powerful disgorgement statute in the country: an unlicensed contractor is barred from suing for any compensation, and the consumer can recover all sums paid (1-year statute of limitations from completion). New Jersey treats an unregistered contractor as a per-se Consumer Fraud Act violation, automatically triggering treble damages and attorney's fees. Maryland makes an unlicensed home-improvement contract void and the unlicensed contracting a criminal misdemeanor. Florida classifies unlicensed contracting as a misdemeanor (felony if in a state of emergency); the Construction Industry Recovery Fund is unavailable to unlicensed contractors.
Mechanic's liens are a common retaliation tactic and a serious consumer problem because they cloud title and can block a sale or refinance even if facially invalid. Every state allows the homeowner to bond around a lien — typically by recording a surety bond of 150% of the lien amount (e.g., NY Lien Law § 37) — and to petition to discharge a lien that is facially defective, late-filed, or unverified. New York's Lien Law §§ 39 and 39-a void the entire lien if any portion was willfully exaggerated and entitle the owner to bond premium plus interest plus reasonable attorney's fees plus the exaggerated amount. California, Massachusetts, and other states have analogous slander-of-title or abuse-of-process claims. Mechanic's liens by unlicensed contractors are typically invalid by operation of statute (e.g., CA Civ. Code § 8400 incorporates the § 7031 licensing requirement).
State variations
What changes by state.
Not a comprehensive list. Confirm your state’s current statute before sending.
- California
- Bus. & Prof. Code §§ 7159, 7031 (disgorgement), 7107 (abandonment), 7113 (failure to complete). Deposit cap: $1,000 OR 10% of contract, whichever LESS (12-pt bold required). CSLB Check a License + complaint. Unlicensed contractor: § 7031 disgorgement of all sums paid.
- New York
- Gen. Bus. Law Art. 36-A (§§ 770–776); Lien Law § 71-a (escrow). Contracts >$500. No flat deposit cap but all pre-completion payments must go into NY trust/escrow within 5 business days or be bonded. No statewide license — verify with local jurisdiction (NYC DCWP, Suffolk, Nassau, Westchester, etc.).
- New Jersey
- Consumer Fraud Act N.J.S.A. 56:8-1 + N.J.A.C. 13:45A-16 (Home Improvement Practices) + Contractor Registration Act (compliance bond $10k–$50k as of April 2025). Contracts >$500. Any unwritten contract = per-se CFA violation = TREBLE damages + attorney's fees.
- Maryland
- Md. Code Bus. Reg. Title 8 (MHIC) + CL § 13-301 (Consumer Protection Act). Deposit cap: 1/3 of contract price. MHIC License Search. MHIC Guaranty Fund pays up to $30,000 per claim after final order. Unlicensed contract void + criminal misdemeanor.
- Florida
- Fla. Stat. §§ 489.126 (permits 30/90 days), 489.129 (license discipline), 489.140–.144 (Construction Industry Recovery Fund $50,000/claim, $250,000/licensee). Unlicensed contracting under § 489.127: misdemeanor (felony in emergency); Recovery Fund unavailable.
- Massachusetts
- G.L. c. 142A + c. 93A § 9 (UDAP — 30-day demand letter required). Contracts ≥$1,000. Deposit cap: 1/3 of contract OR actual cost of special-order materials. HIC Guaranty Fund up to $25,000 (registration required).
- Illinois
- Home Repair & Remodeling Act, 815 ILCS 513 + Consumer Fraud Act, 815 ILCS 505. Contracts >$1,000 must be written + signed; must deliver "Home Repair: Know Your Consumer Rights" pamphlet. No statewide license (roofing licensed by IDFPR). IL AG Consumer Complaint.
- Texas
- Bus. & Com. Code § 17.41 (DTPA) — 60-day pre-suit notice required under § 17.505. Property Code Ch. 27 (RCLA) — 60-day pre-suit notice under § 27.004; contractor gets up to 3 inspections within 35-day window. No statewide GC license; verify TDLR licensed trades.
If this doesn’t work
Your next move.
If the contractor doesn't respond or refuses, the four-track escalation is real and effective. Track 1: state licensing board complaint (CSLB, MHIC, DBPR, Mass HIC, NJ DCA). Track 2: state Recovery / Guaranty Fund claim — Florida CILB Fund up to $50,000, Maryland MHIC Guaranty Fund up to $30,000, Massachusetts HIC Guaranty Fund up to $25,000 — typically requires a final judgment or order first. Track 3: civil suit for breach + UDAP — Massachusetts Ch. 93A § 9 awards mandatory attorney's fees and up to treble damages for inadequate response to the 30-day demand; New Jersey CFA awards treble damages and attorney's fees for any HIP violation. Track 4: criminal referral where the conduct involved deposit theft (Florida § 489.126; California serial-offender provisions; most state AGs). For mechanic's lien retaliation, file a petition to discharge and counterclaim for willful exaggeration (NY Lien Law § 39-a is the model). Many consumer-protection attorneys take contractor cases on contingency because of the attorney's-fee provisions.
Questions people ask
FAQ.
My contractor cashed my deposit and never showed up. Is that just breach of contract, or a crime?
Often both. In Florida, taking more than 10% deposit and failing to pull permits within 30 days or start work within 90 days of permit issuance can be a misdemeanor or felony depending on amount (Fla. Stat. § 489.126). In California, abandonment without legal excuse violates Bus. & Prof. Code § 7107 and is grounds for license discipline. Most states' AGs also treat "deposit and run" as criminal theft above a threshold.
How much can a contractor legally take up front?
Varies sharply by state. California caps at $1,000 or 10% of contract, whichever is LESS. Maryland and Massachusetts cap at 1/3. New York has no flat cap but pre-completion funds must sit in a trust account. Florida doesn't cap the amount directly but ties the deposit to permit-pulling deadlines.
The contractor is licensed but ghosting me. Will the licensing board get my money back?
Sometimes, indirectly. CSLB, MHIC, and DBPR can pressure restitution as a condition of keeping the license. Florida CILB and Massachusetts OCABR have Recovery / Guaranty Funds (up to $50,000 FL, $25,000 MA, $30,000 MD) but only after you obtain a judgment or final order. CSLB explicitly says it cannot guarantee a refund — consumers whose primary goal is restitution should pursue damages through the courts as well.
Do I have to send a demand letter before I sue?
Almost always yes if you want enhanced UDAP damages. Massachusetts Ch. 93A § 9 requires a 30-day demand; failure to send forfeits multiple damages and fees. Texas DTPA requires 60-day demand under Bus. & Com. Code § 17.505; TX RCLA also requires 60-day pre-suit notice under Property Code § 27.004. Even where not strictly required, demand letters reset settlement leverage and document the contractor's refusal.
Can I cancel the contract if I just changed my mind?
If the contract was signed in your home (not at the contractor's office), the FTC Cooling-Off Rule (16 C.F.R. Part 429) gives you 3 business days to cancel any sale of $25 or more. California, New York, and many states layer additional 3-day (or 5-day for seniors in CA) rights for home-solicitation sales. Cancellation notice must be postmarked by midnight of the third business day.
Nervous about sending it yourself?
we’ll read it over with you.
Email the situation and a volunteer attorney will respond. No commitment, no invoice, no judgment — just an honest second pair of eyes from someone who actually understands the law.
info@imfrustrated.org