How to File a Contractor Complaint in Washington: L&I Complaint Process

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How to File a Contractor Complaint in Washington: L&I Complaint Process

When a contractor takes your money and doesn't deliver, or does work so poor it needs to be redone, you have recourse in Washington State. The Department of Labor & Industries (L&I) handles contractor complaints and can help recover your money through the contractor's surety bond.

This guide walks you through the entire complaint process—what qualifies, how to file, what to expect, and how to maximize your chances of recovery.

When to File a Complaint

Valid Reasons for L&I Complaints

L&I accepts complaints involving:

Failure to complete work as agreed
Substandard work that doesn't meet code or industry standards
Breach of contract (contractor didn't deliver what was promised)
Unlicensed contracting (work over $2,000 by unlicensed person)
Failure to pay subcontractors or suppliers (which could result in liens on your property)
Misrepresentation of license status or insurance
Abandonment of project without completion

What L&I Can Do

Investigate the complaint
Attempt mediation between you and the contractor
Process a bond claim to recover your money
Take enforcement action against the contractor's license
Fine contractors for violations

What L&I Cannot Do

Force a contractor to return to work
Order specific performance (making them finish the job)
Award damages beyond actual losses
Handle complaints against unlicensed individuals (different process)
Resolve purely civil disputes without contractor registration violations

For disputes that don't involve L&I violations, you'll need small claims court or civil litigation.

Before You File: Try Direct Resolution

L&I recommends attempting direct resolution before filing formally. This isn't just bureaucracy—it often works and is faster.

Step 1: Document Everything

Gather all records:

Signed contract
All written communications (emails, texts, letters)
Photos of work (including problems)
Payment records (checks, credit card statements, receipts)
Any written change orders
Timeline of events

Step 2: Send a Written Demand

Send a formal demand letter via certified mail (keep the receipt). Include:

Your name and property address
Contractor's name and license number
Summary of the contract and payments made
Specific problems or incomplete work
What you want (completion, repair, refund)
Deadline to respond (typically 10-14 days)
Statement that you'll file an L&I complaint if unresolved

Sample language:

Dear [Contractor Name],

This letter is formal notice regarding the [project type] work at [address] under 
our contract dated [date].

I have paid $[amount] for work that [describe problem: is incomplete / does not 
meet code / was never started / etc.]. Specifically:

[List specific issues]

I am requesting that you [complete the work / correct the issues / refund $X] 
by [date, 10-14 days out].

If this matter is not resolved by that date, I will file a formal complaint with 
the Washington Department of Labor & Industries and pursue recovery through your 
contractor's bond.

Sincerely,
[Your name]
[Your contact information]

Sent via certified mail: [tracking number]

Step 3: Give Them a Chance to Respond

Many contractors will respond to a formal demand letter. They know L&I complaints affect their license and bond.

If they offer to fix the problem:

Get it in writing
Set a specific timeline
Document everything

If they don't respond or refuse to resolve: Proceed to file with L&I.

How to File an L&I Complaint

Step 1: Access the Online Filing System

Go to: secure.lni.wa.gov/contractorcomplaint

You can file online or download a paper form. Online is faster.

Step 2: Create an Account (If Needed)

If you don't have a SecureAccess Washington (SAW) account, you'll need to create one. This is the state's login system for various services.

Step 3: Complete the Complaint Form

The form asks for:

Your information:

Name, address, phone, email
Property address where work was performed

Contractor information:

Business name
License number (look this up at verify.lni.wa.gov if unknown)
Contact information
Names of anyone you worked with

Project details:

Type of work
Start and end dates
Contract amount
Amount paid to date

Complaint description:

What was supposed to happen
What actually happened
What you're requesting (refund amount, completion, etc.)

Supporting documentation:

Contract
Invoices and payment records
Photos
Communication records
Any expert opinions or inspection reports

Important: Be factual and specific. Emotional language doesn't help. State clearly:

What was agreed
What was delivered
What's missing or defective
What resolution you want

Step 4: Submit and Receive Confirmation

After submission, you'll receive a complaint number. Keep this for all future communication.

The Investigation Process

What Happens After You File

Days 1-14: Acknowledgment

L&I acknowledges receipt
Complaint assigned to an investigator
Contractor notified of the complaint

Days 14-30: Contractor Response

Contractor has opportunity to respond
They may accept responsibility, dispute claims, or propose resolution

Days 30-90: Investigation

L&I reviews evidence from both sides
May request additional documentation
May conduct site visits
May interview parties

Days 60-120: Resolution Attempt

L&I attempts mediation
If contractor agrees to resolve, case may close
If no agreement, proceeds to formal determination

Days 90-180+: Determination

L&I issues findings
Determines if violations occurred
Determines if bond claim is warranted

Timeline note: Complex cases can take 6+ months. Simple cases may resolve in 60-90 days.

Your Role During Investigation

Respond promptly to L&I requests
Provide additional documentation as needed
Be honest and accurate
Don't exaggerate claims
Keep records of all communication

The Bond Claim Process

If L&I determines you're owed money and the contractor won't pay, you can file against their surety bond.

How Bond Claims Work

L&I determines valid claim exists
You file bond claim (separate from complaint)
Bond company investigates
Bond company pays valid claims (up to bond limit)
Contractor must replenish bond or lose license

Bond Limits

Washington contractor bonds are limited amounts:

Bond Type	Amount
Standard contractor	$12,000
Increased (some contractors)	Up to $72,000

Important: If multiple claims exceed the bond, claims are paid proportionally. First-filed claims may get full payment; later claims may get cents on the dollar.

This is why filing promptly matters.

What Bond Claims Cover

Money paid for work not performed
Cost to complete abandoned work (difference from contract)
Cost to repair substandard work
Unpaid subcontractors/suppliers (to release liens)

What Bond Claims Don't Cover

Consequential damages (hotel stays, lost rental income)
Emotional distress
Punitive damages
Attorney fees
Amounts exceeding the bond limit

Other Legal Options

L&I isn't your only option. Consider:

Small Claims Court

For claims up to $10,000 (individual) or $5,000 (business):

File in district court where work was performed
No attorney required
Filing fee: ~$35-75
Faster than civil court
Can be used alongside L&I complaint

Civil Court

For larger claims or complex disputes:

Consult with a construction attorney
Can recover broader damages
More expensive and time-consuming
May be necessary if contractor is unlicensed (no bond)

Arbitration or Mediation

If your contract includes an arbitration clause:

May be required before court
Can be faster than litigation
Review contract terms carefully

Maximizing Your Recovery

File Quickly

Bond claims are paid in order received. If the contractor has multiple complaints, early filers get paid first.

Document Thoroughly

Strong documentation = stronger claim:

Written contract (signed)
Clear payment records
Photos of incomplete/defective work
Written communications
Professional inspection reports (if applicable)

Be Specific About Damages

Calculate exactly what you're owed:

Money paid minus value received
Cost to complete work (get quotes from other contractors)
Cost to repair defective work (get quotes)

Follow Up

Don't assume L&I is moving your case. Check status regularly:

Call the contractor complaint line
Reference your complaint number
Ask about next steps

Consider Professional Help

For large claims or complex situations:

Construction attorneys specialize in these disputes
Initial consultation may be free
Contingency arrangements possible

What to Expect: Realistic Outcomes

Best Case

Contractor resolves complaint directly
Full refund or completion
Timeline: 30-60 days

Good Case

L&I mediates successful resolution
Significant recovery through bond
Timeline: 90-180 days

Moderate Case

Partial recovery through bond
Contractor penalized by L&I
Timeline: 6-12 months

Challenging Case

Contractor bond insufficient for all claims
Partial payment (proportional)
May need additional legal action

Difficult Case

Contractor unlicensed (no bond to claim)
Contractor disappeared
Must pursue through civil court

Preventing Future Problems

After a bad contractor experience, protect yourself next time:

Always Verify License First

Use verify.lni.wa.gov before hiring. Check:

Active status
Bond amount
Complaint history

Get Everything in Writing

Detailed contract
Scope of work
Payment schedule
Timeline
Warranty terms

Limit Upfront Payments

Never more than 1/3 upfront
Progress payments tied to milestones
Holdback until completion

Document Throughout

Photos at each stage
Written approval of changes
Communication in writing

Trust Your Instincts

If something feels wrong, pause. Better to lose a deposit than fund an entire failed project.

Resources

L&I Contractor Complaint Line:

Phone: (800) 647-0982
Hours: Monday-Friday, 8 AM - 5 PM

Online Complaint Filing:

secure.lni.wa.gov/contractorcomplaint

License Verification:

verify.lni.wa.gov

Construction Dispute Resolution:

Washington State Bar Association lawyer referral: (800) 945-9722

Need to find a licensed, verified contractor for your next project? Use our Washington Contractor Directory to search L&I-verified professionals with visible complaint histories—so you can avoid problems before they start.