Customer isn't paying - what to do?!

2/21/2012 at 6:41:49 PM

Well my friend you got a problem there. How do you know he didn't rob himself or say there was stuff missing? How well do you know this guy? Never, take on a job without a contract signed for one. If the customer doesn't want to sign a contract then that is a red flag. Not sure what you can do at this point. Consult a lawyer perhaps. Did the cops talk to the guy you hired? A lawyer is your best bet at this point. Sorry I couldn't of been more helpful.

Brent

2/23/2012 at 5:41:39 PM

Sorry about your troubles, but as Brent has outlined it is always best to have a signed agreement that clearly sets out the scope of work, cost, payment terms, remidiation etc etc. In Ontario you have a limited amount of time to file a lien. As you appear to have some paper work, like Brent I suggest you talk to a lawyer to ascertain how you are positioned to recover your money.

Good luck

Kingsway Construction Inc

Glenn Rosborough

2/23/2012 at 6:18:17 PM

Thanks for the responses guys. I think I am going to wait a little longer and see if he actually does pay and then proceed with a lien. I believe I do have enough evidence to prove that he did agree for me to do the work and for the price.

2/24/2012 at 2:52:22 AM

Seems there are some not so nice customers out there. I always get deposits on materials that have to be cut or especially ordered. $500 of material that has to be cut from the supplier equals $500 I need before proceeding. I can't take it back it is yours.

The next thing is a signed agreement that if the job extends over a period of time I ask for weekly payments and submit my hours for every week. I have never had a worry that my labour has gone for not. Of course it does help if the customer is pleased with results as mine have been. I've never had a problem working this way.

Try to get a budget from your customer. This allows you to determine if the project is within reason. If not, you can suggest options to allow the project to proceed, such as leaving the shelves out for now or the very good quality $300 taps instead of the $700 over priced quality ones that have a fancy finish or so the manufacturer would have you believe. They all wear out eventually and you saved your customer $400 that could be put to better use. Believe it or not customers really appreciate the fact that you are looking out for them. I have lots of recommendations and repeat customers for more work because I show I care.

Lots of guys out there overcharging just because they can. Be reasonable, take pride in what you do for your customer and follow the above payment schedule. They will pay.

Unfortunately small claims seems to be the answer for your current situation.

2/24/2012 at 7:49:53 PM

Hi Frank,

It looks like you are in a bind.

Just to let you know in Ontario a Lean cost about $900 and a Lawyer has to do it so its done right. Small Claims cost only about a$100 but you need to keep free time for being in court yourself.

If it starts to take too long, tell him you need some of the money to pay suppliers or they will take their items back... try to minimise the balance...

I hope this helps...

Thanks

Harry C.

2/29/2012 at 12:24:15 PM

Do you legally own and operate a contracting company in this province? Do you have WSIB, or at the very least a WSIB clearance? Do you pay any taxes at all? How about Liability insurance?

If you answer no to any of the above, the home owner that you claim owes you money, has reasons to hold back some of the money.

His threats of suing you are just that, threats. Seriously though if you are properly insured this wouldn't be an issue. I have to ask, as a 4 week "cash job" doesn't seem like a very good deal. What kind of job are you doing that requires 4 weeks of your time and materials, and is only worth 5000??

Best advice, if you do have the capacity to be able to invoice, is to prepare an invoice with the agreed upon price. Add on the HST and try to get the ball rolling legitimately. You will have a hard time getting a lawyer or the courts to help you with your claim otherwise.

Good luck

3/28/2012 at 12:32:53 PM

I don't want to sound like a jerk, but I think I would call this a $5000 learning experience.

When you start doing things under the table these are the risks that you take. I have gone through the lien process also and it can be done less expensive if you do it yourself, but in this case I am not sure what your rights are.

The guy robbing client and the work you did are likely considered separate issue (legally), but that is why you should be carrying proper liability insurance, just in case for some legal reason it is not separate (bonding, breach of contract, breach of trust, etc).

Legal advice is worthwhile, but I think it may be good money after bad. I really don't think you have any options. If this guy has the money as you indicate, a lien is no threat to him, it is just the cost of doing business.

Good luck with this. I would be interested in hearing how it turns out.

Cheers

John

John Kuehnl-Cadwell

Master Electrician

Datawise Solutions Inc

5/25/2012 at 7:04:02 PM

Sorry to hear that Frank but you should know better.

When I want to hire a person even for a week or so I ask them to provide a criminal record and I reimburse the amount. Plus I have the client sign a contract including the payment schedule if they don't wanna pay for some reason lawyer will have to do his job.

But I'm sorry to hear that you going through all that trouble.

Good luck.