Here’s a practical, everything-you-need-to-know guide for the Philippines on pursuing a contractor who absconds after receiving payment—what legal theories apply, which forums you can use (courts, arbitration, agencies), what evidence you’ll need, timelines you can expect, and step-by-step playbooks. This is general PH legal information, not advice for your specific facts.

1) What “absconding” usually looks like (and why the label matters)

Typical red flags:

Contractor receives down payment/progress draw then stops showing up or vanishes.
Gives fake updates, fake licenses, or refuses to account for funds.
No mobilization or only token work; keeps asking for more money.
Unlicensed operation (no PCAB license) for projects that require it.

“Absconding” by itself isn’t a legal conclusion; you’ll frame your case under civil breach, fraud/estafa, and sometimes administrative violations.

2) Civil remedies (contract side)

A. Core causes of action

Breach of contract / damages: recover what you paid, plus the cost to complete/repair, delay damages, penalties/liquidated damages if your contract has them, legal interest (generally 6% p.a. as jurisprudential default), and attorney’s fees if warranted.
Rescission (resolution) with damages: undo the contract for substantial breach and demand restitution.
Unjust enrichment: as fallback where a formal contract is unclear but the contractor kept your money without performing.

B. Provisional remedies (very important)

Preliminary attachment (freeze assets to secure your claim for money or fraud-based claims).
Preliminary injunction/TRO (rare here unless preventing disposal/removal of materials on site, or stopping further harm).

These are requested with or after filing the case; you’ll post a bond and show specific grounds.

C. Venue & track

Amount dictates court (Municipal/Metropolitan Trial Court vs. Regional Trial Court).
If your claim fits the Small Claims monetary cap, you can use Small Claims (no lawyers in hearing, streamlined). Check the current peso ceiling in your locality before filing.
Barangay conciliation (Katarungang Pambarangay) is a mandatory pre-condition for many disputes between natural persons who reside in the same city/municipality (with several exceptions). If the contractor is a corporation/partnership, barangay is generally not required.

3) Construction arbitration (fastest for pure construction disputes)

If your construction contract has an arbitration clause (common in build/fit-out forms), disputes go to arbitration—often under the Construction Industry Arbitration Commission (CIAC) or other named rules.
Even without a clause, parties may agree to submit to CIAC. CIAC specializes in construction disputes (delays, quality, billings, change orders, variations, etc.). Awards are enforceable like court judgments and are generally faster than regular courts.

When arbitration helps: technical disputes (scope, quality, variations, progress billing) or when you want a specialized tribunal and speed.

4) Criminal angle (when the facts support it)

A. Estafa (Swindling) under the Revised Penal Code

Two common theories:

Deceit at the time of contracting—e.g., contractor pretended to be licensed, promised capabilities/resources he never had, or used false pretenses to obtain money; then no genuine intent to perform.
Misappropriation/Conversion—you entrusted funds (e.g., mobilization specifically for your project), and the contractor diverted them to his own use, refused to account, and failed to deliver.

Key: Estafa needs more than mere breach. You must show fraudulent intent (deceit or conversion), not just bad project management.

Evidence that strengthens estafa:

Fake PCAB license or fabricated credentials; screenshots, emails, text threads.
Pattern: other victims, prior similar complaints.
Admissions (“Ginamit ko muna sa ibang project,” “Wala akong lisensya”).
Proof you restricted use of funds to your project (and they were diverted).

B. Other criminal laws that can appear

B.P. 22 (Bouncing Checks Law) if the contractor issues you a bouncing refund check; different from estafa by check deceit.
Falsification if documents/receipts are forged.
Contractor licensing law breaches (see Admin section) can carry penalties.

Note on strategy: You can pursue civil and criminal routes simultaneously (they’re independent), but coordinate facts so they don’t contradict.

5) Administrative and regulatory levers

PCAB licensing (R.A. 4566): Many construction works require a PCAB-licensed contractor. If your contractor is unlicensed for the category or operates beyond licensure scope, that’s an administrative violation. You may file a complaint with PCAB; sanctions include fines, suspension, or blacklisting.
DTI/SEC: If the contractor is a sole proprietorship (DTI) or corporation/partnership (SEC), you can report deceptive practices and confirm legal existence, owners, and addresses.
Local permits: Report to the city/municipal engineering office if there are permit violations on your site.

Admin actions don’t directly pay you back, but they pressure compliance and document misconduct.

6) Evidence: what wins and what merely annoys

Must-have (preserve originals and make digital copies):

Contract / proposal / acceptance (even if via emails/texts/DMs).
Official receipts / bank transfers / deposit slips / e-wallet records.
Milestone schedule and change orders (who approved what, when).
Site photos/videos over time (to show non-performance or defective work).
Conversation trails: SMS, Messenger/Viber/WhatsApp, emails (export them), call logs.
Identity and licensing: PCAB certificate (if any), business registration, IDs, “company” names used.
Expert report (engineer/architect) quantifying % of completion, cost to complete/rectify, and delay damages (helps both in court and CIAC).

Nice-to-have:

Comparative quotations from other contractors to establish market cost to complete.
Neighbors’/workers’ affidavits confirming abandonment.

7) Step-by-step playbooks

A. If you want your money back (or to fund a replacement contractor)

Put the contractor in default: send a formal demand giving a clear deadline (e.g., 7–15 days) to (a) return money, or (b) mobilize and meet specific milestones.
Secure a replacement estimate (cost to complete/repair).
Decide forum:
- Arbitration (CIAC) if your contract allows or both sides agree.
- Court if no arbitration; consider Small Claims if within cap.
- Barangay first if required (both natural persons, same LGU).
File civil case with preliminary attachment if there’s risk of asset flight.
Parallel pressure: file PCAB complaint (licensing) and consider criminal estafa if facts support deceit or conversion.
After judgment/award: pursue execution—garnish bank accounts, levy on properties, or enforce against surety (if you required a performance bond).

B. If you still want the contractor to finish (risky if trust is broken)

Cure plan in writing: narrow scope, strict milestones, no further advances; use escrow or retention only against verified progress.
Supervise with your architect/engineer; require delivery receipts and proof of purchase for materials.
Keep your civil/criminal options open if they default again.

8) Demand letter essentials (short, sharp, effective)

Subject: Final Demand – [Project Address/Contract Date]

Dear [Contractor Name/Company], You received ₱[amount] on [date(s)] for [scope] under our agreement dated [date]. As of today, you have failed to mobilize/perform despite repeated assurances. You are hereby given [__] days from receipt to (a) return ₱[amount] and deliver all paid materials to site, or (b) immediately perform the following milestones: [list measurable items with dates]. Failure will leave us no choice but to (1) rescind the contract and hire a replacement at your cost, (2) file civil action with preliminary attachment, and (3) pursue criminal charges for estafa and administrative complaints with PCAB and relevant authorities. This is without prejudice to liquidated damages, interest, attorney’s fees, and other relief. Kindly treat this as our final demand.

Sincerely, [Name & Address]

Send by registered mail/courier (with tracking) and email/messenger; keep proof of service.

9) Money math: what you can claim

Restitution of advances for undelivered work/materials.
Cost to complete/repair (based on expert/competing contractor quotes).
Liquidated damages if the contract specifies (courts/arbitrators may reduce if unconscionable).
Moral/exemplary damages where fraud or bad faith is proven.
Attorney’s fees and costs (discretionary; stronger when the other side acted in bad faith).
Legal interest (generally computed from date of demand or filing; rate per prevailing jurisprudence).

10) Licenses, bonds, and risk controls (for next time)

Hire PCAB-licensed contractors appropriate to your project category.
Require performance bond/surety and retention (e.g., 10%) until acceptance.
Pay by milestones verified by your architect/engineer (no big advances).
Put change orders in writing (scope, price, time).
Require official receipts and delivery receipts for materials.
Keep a site diary (photos, deliveries, manpower logs).

11) Common pitfalls to avoid

Relying on verbal promises; not documenting change orders.
Paying full mobilization without safeguards.
Filing criminal estafa on a purely civil breach (weak case); build the fraud record first.
Skipping provisional remedies—by the time you win, assets are gone.
Forgetting barangay conciliation when required; your case can be dismissed for lack of that precondition.

12) Quick checklists

Before filing

☐ Contract/proposal & scope, messages, photos
☐ ORs/transfers for every payment
☐ Expert estimate: cost to complete/repair
☐ Final demand + proof of service
☐ Decide forum (CIAC vs. court; barangay requirement?)
☐ Draft for attachment/injunction if needed
☐ Consider criminal and PCAB complaints in parallel

During the case

☐ Keep site secure; document condition
☐ Hire replacement only after formal rescission/termination (or be ready to account)
☐ Update damages computation (actual costs incurred)

After award/judgment

☐ Move for execution promptly
☐ Garnish bank accounts, levy properties, serve writs on debtors of contractor
☐ Enforce against surety if bonded

13) Key takeaways

You typically have three levers: civil (breach/rescission/damages), criminal (estafa when fraud/misappropriation is provable), and administrative (PCAB licensing).
Arbitration (CIAC) is often the fastest avenue for construction disputes; courts remain essential for asset freezes and enforcement.
Evidence discipline (payments, photos, messages, expert quantification) wins cases; emotion doesn’t.
Use provisional remedies early to prevent the “win but can’t collect” problem.

If you want, share (redact sensitive info) your contract, payments, and the latest messages, and I’ll draft a tailored final demand, plus a civil complaint theory and an estafa complaint outline you can bring to counsel.