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If you believe a contractor misrepresented important information, charged for work that was never performed, or engaged in other deceptive conduct during a construction project, you may be wondering: Can I sue a contractor for construction fraud in Orange County?
The answer to that question depends on the facts and circumstances of each case. There are many situations where a construction fraud claim may arise. Some of those situations include home renovation projects, home repair jobs, commercial construction, and new development. Gaining an understanding of how these types of claims work and what evidence may be important can help homeowners, property owners, and businesses understand their rights and options.
Hire a Construction Fraud Lawyer
Engels-Janzen advocates for clients in construction-related disputes in Orange County and throughout Southern California. Christopher Engels can approach these issues from the perspective of having worked in the construction industry for 25 years before becoming an attorney.
That background knowledge, along with the firm’s experience litigating construction and business disputes, provides real-world insight into the types of problems that can occur in residential and commercial construction.
What Must Be Proven in a Construction Fraud Case?
Not all construction disputes result in a fraud claim. A common point of contention is whether the contractor’s false statements, concealed information, or other deceptive actions influenced the homeowner’s decision.
Construction fraud claims often involve misrepresentations of facts about the cost of the project, time required for completion, materials, or the contractor’s license, qualifications, or the scope of the project.
The analysis of a potential claim often involves an assessment of what information was provided before and during the project, whether another party relied on such information, as well as the specific facts and circumstances involved with the project.
What Evidence Can Support a Construction Fraud Claim?
Evidence is often one of the most crucial elements of assessing a potential construction fraud claim. The facts of each case will determine what evidence is available and may include contracts, change orders, invoices, payment records, estimates, project schedules, photographs, emails, text messages, and other communications between the parties.
Permit records, inspection reports, and project correspondence may also provide evidence of the work that was promised and ultimately delivered. Since construction projects can last for a long time, preserving documents during the life of a project can be important. Gathering and reviewing any available evidence can help to clarify the facts and evaluate potential claims and defenses.
Contractor Licensing Misrepresentations
Contractors’ licensure status and qualifications may be important considerations for a property owner in selecting a contractor to perform a project. A contractor may face allegations that they made misrepresentations as to licensing, insurance, bonding, certifications, or construction experience. California Business and Professions Code § 7028 outlines penalties for conduct by unlicensed contractors.
Depending on the facts involved, allegations concerning licensing status may become part of a broader construction fraud dispute. A thorough review of licensing records, advertisements, proposals, contracts, and other communications may be necessary to evaluate what representations were made and whether they were accurate.
What Damages May Be Available in a Construction Fraud Legal Claim?
The types of damages sought in a construction fraud case can vary significantly based on the dispute’s nature and the actual losses sustained. A property owner, for example, may claim that purported fraud resulted in additional construction costs, expenses to repair defective work, project delays, or other financial losses.
Cases can also sometimes involve payments for work that was never done or materials that were never provided. In other cases, the amount of alleged damages may need to be established by looking at contracts, invoices, and payment records, professional evaluations, and other project documentation. The damages in question will usually turn on the facts of the specific case.
FAQs
How Many Fraud Reports Are Submitted to the FTC Each Year?
In 2024, the Federal Trade Commission received close to 6.5 million consumer reports about fraud, identity theft, and other consumer issues. Although not all of these reports are about contractors or construction projects, they do show why it’s so important to research companies, keep records, and carefully read over agreements before making a large financial commitment to a home improvement or construction project.
Should I Continue Paying a Contractor if I Suspect Fraud?
Whether you should continue paying a contractor if you suspect fraud depends on the situation with the project and the contract. Homeowners who are concerned about fraud often document their concerns, preserve project records, and carefully review payment requests before releasing additional funds. Acting too hastily in either direction may lead to further problems. It is important to have a full understanding of the situation before deciding on a course of action.
What Happens if a Construction Fraud Dispute Cannot Be Resolved Informally?
If a construction fraud dispute cannot be resolved through negotiation, then there are other options for dispute resolution. Based upon the facts, the dispute may go through mediation, arbitration, or trial. Some construction-related disputes in Orange County may end up in the Orange County Superior Court. This may depend on the claims, the contract, and the willingness of the parties to settle.
How Much Money Is Recovered Through False Claims Act Cases?
Government enforcement actions related to fraud also continue to produce substantial recoveries. The United States Department of Justice reported that in fiscal year 2025, settlements and judgments under the False Claims Act surpassed $6.8 billion.
While many of these False Claims Act cases do not arise from private residential construction but rather projects funded by the government, the number illustrates the substantial financial consequences that fraud-related allegations can create in certain cases.
Contact a Construction Fraud Lawyer
Accusations of construction fraud can be very fact-specific, depending on what was said, promised, written, and ultimately performed during the course of a project. Some issues may be the result of a simple misunderstanding or a dispute over contract performance. Others may involve allegations of deception or misrepresentation.
Engels-Janzen has significant experience with construction-related disputes and is familiar with the legal and practical issues involved when fraud is alleged in connection with a construction project. Schedule a consultation today to hire a construction fraud lawyer.
