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[WA] Can a contractor be liable to a homeowner after handing off an unfinished project to another company?

TJ, Esq.
TJ, Esq.

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Good to have that additional context.

YOUR LEGAL EXPOSURE: Based on what you've described, your exposure is actually quite limited, and here's why. You completed your scope of work, obtained all required permits through the city, and had those permits inspected and finalized. That's the critical piece. Once a permit is finalized by the local authority, your work is essentially locked in as complete from a legal standpoint. The homeowner can't later claim your electrical work was defective or incomplete because the city already inspected and approved it. In Washington, electrical permits and inspections are governed by (WA Rev Code § 19.28.101), and the inspection process is meant to confirm that the wiring and equipment conform to the National Electrical Code and the chapter's other requirements.

Your lack of a signed contract with the homeowner actually works in your favor here. Without a contract, there's no enforceable agreement between you two. The unsigned estimate doesn't create binding obligations. This means the homeowner's claims against you would have to be based on something other than a breach of contract, like negligence or defective work. But again, the finalized permits undercut that because the city already verified the work met code.

IMPLIED ACCEPTANCE AND THE NEW COMPANY HANDOFF: The new company's conduct absolutely constitutes implied acceptance of your project handoff. Here's what happened: you sent a clear email stating your condition (you profit from equipment sale), the new company never formally rejected it, and then they took concrete actions that showed acceptance. They pulled their own electrical permit, which is a formal governmental action. They billed the homeowner directly, establishing themselves as the responsible party. They communicated with the homeowner for three months, further cementing their role. And critically, they sent you a check for the exact equipment profit you specified in your email.

This pattern of conduct is textbook implied acceptance. Courts recognize that when someone receives an offer, doesn't reject it, and then acts in a way consistent with accepting it, that silence plus conduct equals acceptance. For the equipment portion of the deal, Washington's commercial code similarly allows a contract for the sale of goods to be formed in any way that shows agreement, including conduct by both parties recognizing that a contract exists (WA Rev Code § 62A.2-204). The new company didn't just casually show up; they formally took over the contractual relationship by pulling permits and billing directly. The check was the final confirmation that they understood and agreed to your terms.

THE HOMEOWNER'S BREACH: The general contractor's contract with the homeowner explicitly prohibited her from communicating directly with contractors or making payments outside his scope. She violated that contract with multiple parties, including you and the new company. This is huge for you because it shows the homeowner breached her own contractual obligations. When someone breaches their own contract, it weakens their ability to sue others. She can't claim she's a victim of poor coordination when she's the one who created the problem by going around her GC.

Additionally, if the homeowner sues you, the GC could potentially be a necessary party to that lawsuit because the contract violation involves him. Washington's Superior Court Civil Rule 19 governs when a court must order that a person needed for a just adjudication be made a party. That complicates her case and potentially shifts liability toward the GC, not you.

YOUR POSITION GOING FORWARD: You're in a solid position. You completed your work, got it inspected and approved by the city, and properly handed off the remainder to the new company. You have an email trail showing your offer and the new company's implied acceptance through their actions. You have a check from the new company showing they understood your terms. And you have the fact that the homeowner violated her own GC contract, which undermines her credibility and weakens any claims against you. Washington also limits how long claims like these can be brought. (WA Rev Code § 4.16.080) sets a three-year deadline for actions on a contract or liability, express or implied, that isn't in writing, and the construction statute of repose in (WA Rev Code § 4.16.310) bars claims that haven't accrued within six years after substantial completion of construction or the end of the contractor's services, whichever is later.

The real issue isn't your exposure; it's whether the new company will stand behind their work and their assumption of the project. That's between the new company and the homeowner now. If the homeowner sues you anyway, your defenses are strong: completed and inspected work, no binding contract with her, implied handoff to the new company, and her own breach of her GC contract.

Does this answer your questions about your exposure, or is there something else you'd like to explore? Thank you for bringing me into this. I'm glad I could help you think through where you actually stand.

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I am a licensed electrical contractor who performed work on a residential project. I completed my scope of work, and all of my electrical permits were pulled, inspected, and finalized by L&I. There was no signed contract with the homeowner, only an unsigned estimate. My former partner joined a new company. I sent the new company an email asking if they wanted to take over the remainder of the project's AV and electrical scope, with the only stipulation being that we would profit from the equipment sale. The new company never formally responded, but they did show up to the project, pulled their own electrical permit, billed the homeowner directly, and communicated with her for approximately three months. They also sent me a check representing the profit on the equipment sale, the exact condition I laid out in my email, though they purchased and sold the equipment directly to the homeowner themselves. The homeowner is now threatening to sue all parties because the project is not being completed. The general contractor has informed me that the homeowner's contract with him explicitly prohibited her from communicating directly with contractors or making payments outside of his scope, which she apparently did with multiple parties including us.

My questions are: What is my actual legal exposure given the finalized permits, unsigned estimate, and the new company's assumption of the work? Does the new company's conduct (pulling permits, billing, and honoring my stated condition) constitute implied acceptance of the project handoff? And does the homeowner's breach of her own contract with the general contractor affect her ability to bring claims against me?

Lexi

Lexi, Chatbot

I understand that this situation with the homeowner and the new company must be quite stressful for you. Can you clarify if you have any written communication or documentation regarding your agreement with the new company about the project handoff?

I sent the new company an email asking if they wanted to take over the remainder of the project's AV and electrical scope, with the only stipulation being that we would profit from the equipment sale. The new company never formally responded, but they did show up to the project, pulled their own electrical permit, billed the homeowner directly, and communicated with her for approximately three months. They also sent me a check representing the prof

Lexi

Lexi, Chatbot

Have you had any prior disputes or legal issues with the homeowner or the general contractor before this situation arose?

No.

Lexi

Lexi, Chatbot

Is there anything else the Lawyer should know before I connect you? Rest assured they'll be able to help with your legal exposure.

No.

TJ, Esq.

TJ, Esq.

Hello! My name is TJ, and I'm an attorney with over 20 years of experience. Thanks so much for the opportunity to assist you!

Your exposure is pretty limited here. You completed your scope, got permits finalized, and never had a binding contract with the homeowner. The new company's conduct, including showing up, pulling permits, billing directly, and paying you the equipment profit, looks like implied acceptance of your handoff offer. The homeowner's breach of her GC contract (communicating directly and paying outside his scope) actually weakens her position against you since she violated her own contractual obligations. What state is this in, and do you have that email to the new company in writing? PS: I do my best to keep chats going in real time, but if there's a delay on my end, please don't worry. The chat doesn't close and I'll get back to you as soon as I can. There's no rush on your end either!

[name redacted] Fri, May 16, 2025, 8:19 AM to my former partner [name redacted], I wanted to see if the new company is interested in acquiring the [redacted: project name] project for the remainder of the electrical and AV scope, including the homework system. With the only condition that me and you sell the homework equipment and make a profit on the parts and smarts of that system. Due to the high demand of solar projects on our plate, we have very limited capacity to continue this project without unfortunately creating a negative customer experience. I wanted to see if you guys are interested in taking it over and running it. There's also a [redacted: project name] home project that unfortunately I will not be able to do as well and I will be letting the customer know that I wanted to see if you guys were interested in praying as well at no cost. Let me know your thoughts, [name redacted] Founder / CEO [business name redacted] Phone: [phone number redacted] Email: [email address redacted] Website: [redacted: business website]

TJ, Esq.

TJ, Esq.

Good to see the email. This actually strengthens your position quite a bit. Your email to your former partner was clear and specific: you'd hand off the project if the new company profited from the equipment sale. The new company's silence followed by action, including pulling permits, billing the homeowner, communicating for three months, and then sending you that equipment profit check, is pretty strong evidence of implied acceptance. They didn't just show up casually; they formally pulled their own permit and took over the contractual relationship with the homeowner. Sending you the check for the exact condition you stated shows they understood and agreed to your terms, even without a formal written response. Your legal exposure remains minimal. You completed your work, got permits finalized, and had no binding contract with the homeowner. The new company became the party responsible for the remainder of the scope once they took over. The fact that the homeowner violated her GC contract by dealing directly with you and the new company actually helps you because it shows she breached her own obligations, which limits what she can claim against you. The real question is whether the new company will stand behind their work or try to distance themselves. Did the new company ever communicate with you after sending that check, or has there been radio silence since? Thank you for sharing that email. It makes a real difference.

A representative of the new company my old business partner went to go work for them. He was in communication with me. He just asked me questions about the project, but nothing direct from the new company besides a video call that I had with my former partner and the owner of the new company, just going over the project itself and passing it off.

TJ, Esq.

TJ, Esq.

Good to have that additional context.

YOUR LEGAL EXPOSURE: Based on what you've described, your exposure is actually quite limited, and here's why. You completed your scope of work, obtained all required permits through the city, and had those permits inspected and finalized. That's the critical piece. Once a permit is finalized by the local authority, your work is essentially locked in as complete from a legal standpoint. The homeowner can't later claim your electrical work was defective or incomplete because the city already inspected and approved it. In Washington, electrical permits and inspections are governed by (WA Rev Code § 19.28.101), and the inspection process is meant to confirm that the wiring and equipment conform to the National Electrical Code and the chapter's other requirements.

Your lack of a signed contract with the homeowner actually works in your favor here. Without a contract, there's no enforceable agreement between you two. The unsigned estimate doesn't create binding obligations. This means the homeowner's claims against you would have to be based on something other than a breach of contract, like negligence or defective work. But again, the finalized permits undercut that because the city already verified the work met code.

IMPLIED ACCEPTANCE AND THE NEW COMPANY HANDOFF: The new company's conduct absolutely constitutes implied acceptance of your project handoff. Here's what happened: you sent a clear email stating your condition (you profit from equipment sale), the new company never formally rejected it, and then they took concrete actions that showed acceptance. They pulled their own electrical permit, which is a formal governmental action. They billed the homeowner directly, establishing themselves as the responsible party. They communicated with the homeowner for three months, further cementing their role. And critically, they sent you a check for the exact equipment profit you specified in your email.

This pattern of conduct is textbook implied acceptance. Courts recognize that when someone receives an offer, doesn't reject it, and then acts in a way consistent with accepting it, that silence plus conduct equals acceptance. For the equipment portion of the deal, Washington's commercial code similarly allows a contract for the sale of goods to be formed in any way that shows agreement, including conduct by both parties recognizing that a contract exists (WA Rev Code § 62A.2-204). The new company didn't just casually show up; they formally took over the contractual relationship by pulling permits and billing directly. The check was the final confirmation that they understood and agreed to your terms.

THE HOMEOWNER'S BREACH: The general contractor's contract with the homeowner explicitly prohibited her from communicating directly with contractors or making payments outside his scope. She violated that contract with multiple parties, including you and the new company. This is huge for you because it shows the homeowner breached her own contractual obligations. When someone breaches their own contract, it weakens their ability to sue others. She can't claim she's a victim of poor coordination when she's the one who created the problem by going around her GC.

Additionally, if the homeowner sues you, the GC could potentially be a necessary party to that lawsuit because the contract violation involves him. Washington's Superior Court Civil Rule 19 governs when a court must order that a person needed for a just adjudication be made a party. That complicates her case and potentially shifts liability toward the GC, not you.

YOUR POSITION GOING FORWARD: You're in a solid position. You completed your work, got it inspected and approved by the city, and properly handed off the remainder to the new company. You have an email trail showing your offer and the new company's implied acceptance through their actions. You have a check from the new company showing they understood your terms. And you have the fact that the homeowner violated her own GC contract, which undermines her credibility and weakens any claims against you. Washington also limits how long claims like these can be brought. (WA Rev Code § 4.16.080) sets a three-year deadline for actions on a contract or liability, express or implied, that isn't in writing, and the construction statute of repose in (WA Rev Code § 4.16.310) bars claims that haven't accrued within six years after substantial completion of construction or the end of the contractor's services, whichever is later.

The real issue isn't your exposure; it's whether the new company will stand behind their work and their assumption of the project. That's between the new company and the homeowner now. If the homeowner sues you anyway, your defenses are strong: completed and inspected work, no binding contract with her, implied handoff to the new company, and her own breach of her GC contract.

Does this answer your questions about your exposure, or is there something else you'd like to explore? Thank you for bringing me into this. I'm glad I could help you think through where you actually stand.

I think this answers my question about exposure. I feel good about it. I'll see what happens.

TJ, Esq.

TJ, Esq.

That's great. You've got a solid foundation here, and you've handled the handoff properly. Just keep that email and the check safe in case you ever need to reference them. You're in good shape. Is there anything else you'd like to clarify, or are we good? Thanks so much for using the service. Feel free to come back anytime if anything comes up.

TJ, Esq.

TJ, Esq.

24,722 satisfied customers

TJ, Esq.
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