I am renovating a bathroom for my customer. I have finished the tile work and started the installation of toilet, vanity, shower etc. I have finished toilet and vanity. but the shower and the medicine cabinet was damaged.
Now the owner told me that it will take about 10 days to get the cabinet and shower because it was coming from USA. And he is also holding 35% of contract price, but I think he should hold only 10% because I have finished most of the work.
Is he legally allowed to hold the money in such case? What if get other job during this waiting time and I am not able to finish his work? Can I claim that money he is holding?
Ya 35% is high. Call lawyer referral and they will be able to refer you to a lawyer for 1 hour for $25. Dont have the number handy but just google it. It would help if you had a written contract too.
I personally would just chat with your customer and say that you have done most of the work and need some money. Tell your next job that you will have to skip out for a day when the vanity arrives.
The client can withhold whatever they like within in the terms and conditions of the contract you signed.
If you do not have these terms and conditions included in your contract agreement, as a contractor you are shooting yourself in the foot.
ON YOUR CONTRACT, YOU MUST DETAIL HOW YOU ARE TO BE PAID, THE PAYMENT SCHEDULE, FEE AND HOLD BACK SCHEDULE, AND ANY FINANCE/LATE PAYMENT FEES.
Otherwise, you have nothing to show to a judge displaying why you think you should be paid X $$.
I'm guessing that you haven't done so in this instance. In order to cover yourself and your accounts receivables, I suggest you file a lien on the property you were doing the work on. On that lien, make sure you make provisions for the cost of time it took to lien, and any fees etc incurred to file.
If you had nothing to do with damaging the material the client should not hold back 35%. A 10% to 15% hold back is reasonable.
Having said that, things happen, so if you get another contract in the mean time, be sure you make it clear to the new client that you will disapear for a day or two and explain why.
Seems fair to me. You have done about 2/3 s of the job and he's paid you for that. He's holding the rest
till the work is done. This way he knows you will finish.
You may not be able to finish on the exact day the material arrives, but were not talking about a ton of work. The medicine cabinet will take you about 15 min. to install not sure whats all involved with the shower, but I am assuming it wont be a lot of work. so do it on a weekend if you have other working pressing.
Whether the owner is legally allowed to hold the money is not the issue. I do not think there are any laws or legislature that deals with your situation. You can claim the money but if the Owner does not write the cheque then there is a problem.
Maybe you can discuss with the Owner to settle on an amount that is between your amount and his amount. I guess he is concerned that you may not come back to do the finishing and that is why he is holding the payment.
Try to settle on something as it is better if the money is in your pocket or bank.
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