Feb 25, 2026
Hiring a contractor for a home renovation is a major decision, especially when it comes to large-scale projects that can cost six figures.
Susan from Dayton, Ohio, called into The Ramsey Show seeking advice after she and her family had dumped over $300,000 into a home addition that was scheduled to be completed in the fall.
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“It was supposed to be done by Thanksgiving, and it’s not anywhere close to being done right now,” she said in a clip posted Feb. 2 (1).
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She says the family had a retainage of $11,000 left on the $313,000 project, and she was wondering what their options were to get the project moving.
Susan’s situation raises questions about what legal and financial options are available to homeowners once a major renovation goes off the rails — and what safeguards could have been put in place before work began.
'That's a low bar'
Some homeowners sign contracts without fully understanding how issues such as delays, supply shortages and subcontractor issues could derail a project.
“We just kind of trusted our contractor,” Susan said.
The contractor is Amish, and she says there have been some days when his community obligations have taken priority, but otherwise he’s been very communicative and doesn’t appear to have given up on the project.
“Yeah, that’s a low bar, though, Susan,” co-host Rachel Cruze said.
Either way, he’s blown the project far past its deadline. Cruze recommended Susan’s family sit down and have a serious conversation with the contractor in which they establish new terms and deadlines that are reasonable. And if that fails, it may be time to explore legal action to recoup any money.
When timelines drag on and work stalls, families can be left paying mortgages on unlivable homes. But keep in mind you’ll have to meet a certain bar to justify a legal claim.
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Read the fine print
Homeowners may have options after a renovation goes awry — but protection starts at the contract level.
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“If the agreed-upon deadline for construction has passed, or the delay is considered unreasonable, you may have justification for a claim unless it was out of the contractor's control,” according to Rocket Lawyer (2). But, if the delay is beyond the contractor’s control — and if it isn’t addressed in your contract — then “there may not be much that can be done.”
That’s why a formal contract is so important. Before you sign on the dotted line, review the contract carefully, ideally with a lawyer. The contract should include:
- A detailed scope of work
- Total price and payment schedule
- Start and finish dates (don’t leave this open-ended)
- Change order procedures
- How disputes will be handled
- How delays will be addressed
- What’s considered a breach of contract or abandonment of the project
- Under what circumstances a contract can be terminated
It’s also widely advised to never pay in full upfront. Stagger your payments so the contractor can afford labor and supplies, and don’t deliver the final payment until the work is completed and you inspect it.
Unfortunately for Susan, her family has paid out nearly all of the money already, so she may have to go through the courts if she wants any of it back. Otherwise, she can hold on and hope the contractor agrees to and delivers on a new deadline.
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The Ramsey Show Highlights (1); Rocket Lawyer (2)
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Vawn Himmelsbach is a veteran journalist who covers tech, business, finance and travel. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, CBC News, Yahoo Finance, MSN, CAA Magazine, Travelweek, Explore Magazine and Consumer Reports.
