When a contractor quits mid-project

aquafire

Active member
Feb 14, 2024
26
3
When the contractor quits before the project is finished, does the building permit still remain active, or does the homeowner have to apply for another permit? My gazebo project has turned into a nightmare. I can't blame the contractor for taking a more lucrative job, but it sure has put us in a tough spot.
AdobeStock_457085182.jpeg
 
Location
United States
I'm not sure if it's specific to your location or not, but I know that the permit stays with the project itself here. The permit is issued to the person who applies for it. When a contractor does it, it's usually on behalf of the homeowner, which the permit states. You should call the issuing authority to check, but I bet your permit is still active.
 
Mantis is right, the permit should be in your name.

Also, maybe you already did this, but I'd probably take another look at the contract you signed (assuming you signed one) and see whether there was any breach of contract on the contractor's part. You said, "I can't blame the contractor for taking a more lucrative job," so it sounds like you and the contractor parted ways amicably. But if the contractor suddenly quitting caused you to incurred damages, you should probably consider filing a claim.
 
Had that happen to us years ago when we hired a contractor to expand a closet. Unfortunately the contractor had a family emergency and had to put the work on hold. Of course you don't know how long that is going to take, so it then relies upon you to find another contractor to continue the work, or just wait it out. Some construction crews might even have contractors on the ready for when another contractor has to bow out.

In this case though, I'd say do what @Eric said, if there was a contract you signed with the contractor, then they can't just leave whenever and take work elsewhere. Especially if there is work to be done and some of the money has already gone to them.
 
The permit will be under your name and should always be. If not, then the permit is useless to you I believe, as it needs to be in the homeowners name. At least that's what I'm aware of. Or what I believe.

Sadly, sometimes contractors have to cancel a project and let others take over. I've never had a contractor quit on me, but I'm sure it's a common thing.

Though, if there was a contract that was signed off on, and the contractor left without fulfilling it, then they may be on the hook for fees and other such things.
 
I'm sorry to hear about the trouble you are facing with your gazebo project. In most cases, the building permit remains active even if the contractor quits before the project is finished. However, you still need to check the regulations and requirements in your specific area, as they can vary depending on local building codes and ordinances.
 
When a contractor quits mid project it can be a huge setback but there should always be a backup plan to cover that sort of thing. Usually the permit is under the homeowners name or via an accessible means in case an issue could possibly arise but once the contractor is gone it is all dependent on the codes and regulations set forth by your jurisdiction to continue the following steps
 
When the contractor quits before the project is finished, does the building permit still remain active, or does the homeowner have to apply for another permit? My gazebo project has turned into a nightmare. I can't blame the contractor for taking a more lucrative job, but it sure has put us in a tough spot.
AdobeStock_457085182.jpeg

The permit still remains active, but up to the homeowner to update the new contractor and provide that information to the city/county.
 
When the contractor quits before the project is finished, does the building permit still remain active, or does the homeowner have to apply for another permit? My gazebo project has turned into a nightmare. I can't blame the contractor for taking a more lucrative job, but it sure has put us in a tough spot.
AdobeStock_457085182.jpeg
Technically the permit is owned by the property owner. But the jurisdiction may have a specific process to add a new GC which often includes providing a letter from the property owner along with the GC information - just be sure the GC is licensed and has current insurance.
 
If the contractor applied for the permit, then a new permit will need to be applied for either by the owner or the contractor.

If the owner applied for the permit, then they can submit a change with the new contractors' information.
 
When a contractor quits mid project it can be a huge setback but there should always be a backup plan to cover that sort of thing. Usually the permit is under the homeowners name or via an accessible means in case an issue could possibly arise but once the contractor is gone it is all dependent on the codes and regulations set forth by your jurisdiction to continue the following steps
Yeah it's good to have a backup plan just in case, you never know when a contractor might have to leave for personal reasons, or they can't fulfil the work outlined. Or if they happen to be bad at their job. Always have a back up. Having a few contractors in mind helps.
 
It depends if the permit is still active. If it is expired (depending on how long) a fee can be charged to reopen, or a new permit application can be required by the Building Official.
 
When the contractor quits before the project is finished, does the building permit still remain active, or does the homeowner have to apply for another permit? My gazebo project has turned into a nightmare. I can't blame the contractor for taking a more lucrative job, but it sure has put us in a tough spot.
AdobeStock_457085182.jpeg
In our county, a building permit remains active or open until the work is completed--if a contractor quits mid-project the homeowner just requests a transfer of applicant. Someone must be accountable for the work being completed to code.
Whomever applies for the permit is who is liable for the work being completed to code. If a property owner applies--they are liable for the work being completed. If a property owner assigns a designated agent (typically the contractor) to pull the permit paperwork--the designated agent (contractor) is liable for the work being completed unless the property owner releases them with a written report.
 
In our county, a building permit remains active or open until the work is completed--if a contractor quits mid-project the homeowner just requests a transfer of applicant. Someone must be accountable for the work being completed to code.
Whomever applies for the permit is who is liable for the work being completed to code. If a property owner applies--they are liable for the work being completed. If a property owner assigns a designated agent (typically the contractor) to pull the permit paperwork--the designated agent (contractor) is liable for the work being completed unless the property owner releases them with a written report.
That's how it should be everywhere. I believe that's how it's done here in Michigan as well. A friend of mine had work done on his property, and the contractor hired had to quit. They were able to move the permit over to them and I believe they just hired another contractor. I hear the process can be quite easy.
 

For further information on this GPT, visit the U.S. National/Federal GPT page.

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