When a homeowner engages a contractor to do work on his or her house, there is potential for conflict at many different junctures of the construction process. The purpose of this article is to provide information on the practical and halachic aspects of this relationship so that the parties can foresee and preempt these potential problems. We will also discuss halachic solutions to this type of conflict.

A homeowner who is considering a construction project will typically call a number of contractors for estimates, and will need to make a decision about which contractor to use. The decision may be based on multiple factors, such as price, personal comfort level with the contractor, and the general reputation of the contractor. It is permitted for the homeowner to ask a potential contractor for references. This does not violate any laws of lashon hara, because the intent of the information is for a constructive purpose (toeles).  If one is being asked about an experience they had with a contractor, it is imperative upon the speaker to be precise in the information that he or she relates. If they do have any first-hand information that is not positive, they must not exaggerate to make it sound worse than the reality, and they must intend to communicate the information for a constructive purpose. For any questions of halacha that may arise, the reader is encouraged to seek guidance from a competent halachic authority.

After this research, the homeowner may be ready to sign a contract with the contractor. It is important that the contract be as detailed as possible so as to avoid any future misunderstandings between the homeowner and contractor. The contract should specify the scope of the project in detail, itemizing each component of the project along with its cost.

For example, the contract may discuss the details of an extension on a house. It should itemize the work needed for framing, installation of an HVAC system, plumbing, electrical work, flooring, siding, and roofing, along with the cost of each of these components. It should also be specific about the dimensions of the different rooms in the project. The contract should specify a draw schedule, which delineates what funds the homeowner must advance as each percentage of the project is completed. The contract should specify an allowance for specific items, such as light fixtures, tiles, and flooring materials, and should clarify whether the contractor or homeowner is responsible for the purchase of these items. If the contractor is responsible for scheduling municipal inspectors and ensuring that the work passes inspection, that too should be specified. 

For issues that may arise that are not specifically mentioned in the contract, it is important for the homeowner and contractor to have open communication. The following is one small example: When the contractor is responsible for the purchase of materials, the homeowner typically chooses the color of paint, the type of flooring, cabinets, etc. The homeowner and contractor should clarify who is responsible for providing samples of the different options.

Even after a contract is signed, the homeowner will often wish to make changes or additional requests of the contractor. These change orders should be done with some sort of documentation, such as an email or text describing the work requested and the price of the additional work. Both sides should communicate clearly as to whether the change replaces the cost of existing work or if it is in addition to the cost of existing work.

The contract may or may not have a time frame of when the work will be completed. When a time frame has been agreed upon, if the contractor is not able to maintain the original time frame, it is important that the homeowner and contractor come to a new agreement. Some delays may be beyond the control of the contractor, such as delivery of materials or scheduling of municipal inspections. Other delays may be within the control of the contractor, so it is imperative that the two sides come to an understanding.

Typically, the contractor will wait to start the project until proper funding has been secured. If the homeowner is borrowing funds for construction, the contractor should wait until the loan application is formally approved and the funds are available from the lender. After the project is underway, a potential point of contention may be about what percentage of the project has been completed, with the homeowner and contractor disagreeing as to whether the next installment of funds is due.

In any of the above mentioned areas of conflict, the initial approach of both homeowner and contractor should be to have a conversation about the issue at hand and come to an agreement. While this is ideal, the parties may need a more formal arrangement to resolve the conflict. Mediation should be considered as an option, where a third party is engaged by the parties to help reach a resolution. Mediators often have formal training in helping parties resolve conflicts and reach an agreement. It may also be helpful for the parties to solicit the opinion of a mutually-chosen neutral party who has expertise in construction. Another alternative is to approach a bais din. The bais din serves as an arbitration panel to give a halachic decision about the relevant issues.

Litigation in civil court for areas of conflict is forbidden by halacha if the defendant is someone under the jurisdiction of bais din – namely, a Jew who should be responding to bais din. (see Choshen Mishpat 26:1, which uses harsh terms for one who violates this halacha). It should be noted that even if the defendant is irreligious or a gentile, if the defendant party will submit to bais din, the claimant is required to adjudicate through a bais din (see the Minchas Pitim on Choshen Mishpat 26).

In summary, when a homeowner and contractor engage with each other, if the parties enter with an approach of foreseeing and avoiding potential conflict, along with clear and respectful communication with the other party, the experience can often go smoothly. In the event that an intervention is necessary, the Torah guides us in how to go about resolving the issue according to halacha.

Rabbi Yosef Rosenfeld is the Administrator for the Baltimore Bais Din. He may be reached for comments at RYR@baltimorebaisdin.org.