Your subcontractor quit mid-project. Now what?

It happens more than anyone admits. What you can do next depends mostly on what you signed before it started.

Start with the agreement

Look for the notice required to end the engagement, how partial work gets paid, return of equipment and materials, and whether you can recover the cost of replacing them. No written agreement means you're working from emails, invoices, and state contract law. What actually matters in an independent contractor agreement covers what to put in the next one.

Holding payment

Withholding everything is tempting and often wrong. You generally owe for work actually delivered, minus what the agreement lets you offset. Holding more than that can make you the party in breach. If you offset, write down what and why.

Equipment

Laptops, tools, and access credentials are yours. Ask for them back in writing, with a deadline and a return method. Cut system access immediately; don't wait for the equipment.

Your client

If the work was for a client, read your agreement with them too. You may owe notice, a replacement, or a credit. In your client's eyes, the walkout is your problem.

Don't invite a classification question

How you handle the dispute can't fix a misclassification. If the "contractor" worked like an employee, the dispute may draw attention to that.

What to do

Send one clear written notice: what you owe, what you're offsetting and why, what must be returned and by when. Keep it factual. Next time, use an agreement with notice, equipment, and partial-payment terms. Document review and revision covers the agreement.

This is general information, not legal advice for your situation. If you want an answer for your business, book a consultation.