What Happens When a Contractor Abandons a Project in Texas?

When a contractor abandons a construction project in Texas, it can cause inconvenience, project delays, and additional costs. In fact, abandonment is a material breach of contract under Texas law. In such cases, the property owner has the legal right to terminate the agreement, hire a replacement contractor, and pursue financial damages through a construction claim in Texas.

What Constitutes an Abandonment?

Under Texas law, abandonment occurs when a contractor’s actions (or omissions) indicate that they do not intend to complete the work as promised.

Examples of abandonment include:

• Leaving the job site indefinitely without explanation
• Removing tools, equipment, or materials necessary to complete the project
• Repeatedly failing to respond to communication
• Making no reasonable effort to return and complete work

To be sure, not every delay is abandonment. A contractor facing supply chain delays, weather issues, or other legitimate disruptions may not be considered abandonment. In some cases, contractor abandonment is discovered only after serious construction defects are uncovered, such as unsafe electrical work, structural issues, or code violations, that make continuing projects impossible or dangerous

When abandonment and construction defects overlap, property owners may have multiple legal claims that require careful evaluation.

Steps to Take If A Contractor Abandons the Job

If you suspect abandonment, you should take specific steps to protect your rights and prepare for a potential abandonment claim. 

1. Document Everything

You should thoroughly document signs of the contractor’s abandonment. You should:

• Take detailed photos and videos of the job site
• Keep all emails, texts, and voicemails
• Record the timeline of events and all payments made (receipts, checks, bank statements)

This evidence will help show abandonment and calculate damages.

2. Send Written Notice

Before escalating the issue to a courtroom, contact the contractor to ask for clarification on whether they intend to complete the project. There may be a legitimate reason for the stoppage. If you cannot reach a resolution, send a formal written notice stating:

• That work has ceased
• The contractor is in breach
• A deadline (often 7–10 days) to “cure” the breach and resume performance

This step is often required by contract and helps protect your rights if you choose to pursue legal action.

3. Terminate the Contract

If the contractor fails to return or respond, you may terminate the contract for cause. It is crucial to:

• Send a termination notice in writing
• Retain all proof of extra costs incurred in completing the work with a new contractor

It’s important to note that terminating a contract prematurely can have legal consequences if not justified by the contractor’s conduct. 

For non-residential projects, Texas law requires that you notify any subcontractors or suppliers in writing within 10 days of the contractor’s abandonment or termination. This is crucial to avoid unexpected mechanics’ liens being filed against your property.

Remedies Available in Abandonment Claims

When a contractor abandons the project, you can sue for breach of contract. Potential damages include:

• Additional expenses above the original contract to finish the job
• Delays preventing occupancy or business use
• Costs to protect incomplete structures or materials
• Expenses related to permit renewals, temporary housing, or lost profits in some commercial contexts

An experienced lawyer can help you identify and calculate all the damages you’ve incurred due to the contractor’s abandonment. 

Consult a Houston Construction Attorney for Help

Legal claims involving construction abandonment can be complex. An experienced construction lawyer can help you:

• Navigate breach of contract and lien law
• Evaluate the contractor’s defenses (e.g., force majeure, owner delays)
• Send notices to the contractor and subcontractors
• Pursue compensation or negotiate settlements over the abandonment

Contact an experienced attorney to schedule a confidential consultation to learn more about your rights. Porter Law Firm provides private case reviews to help you understand your legal options.