contractors how do you deal with non-paying clients?

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go-B

climber
Hebrews 1:3
Jul 14, 2013 - 08:09pm PT
Just as there is a better business bureau, there should be a better customer bureau, to let others know!
Anxious Melancholy

Mountain climber
Between the Depths of Despair & Heights of Folly
Jul 15, 2013 - 12:36am PT
Law in CA is 10% or a thousand bucks as down payment. Any of you licensed contractors asking for more should know better, and if a client refuses to pay 50%, they are well within their rights.

License and a signed agreement is golden. They don't pay, you can easily/leagaly hamstring them. Not licensed? Pound sand.
Jon Beck

Trad climber
Oceanside
Jul 15, 2013 - 09:02am PT
A contractors license is not required in CA for that sort of job. Handyman type work (less than 500 bucks? exempt from licensing). Window for filing a mechanics lien is quite short, do it anyhow to get their attention. In CA you can sue in small claims, it is cheap and quick. If they still fail to pay file an Abstract of Judgment in every county they own property in. Judgment lasts 10 years and can be renewed indefinitely and earns 10% interest. They will be unable to sell or refi their property until they pay you.
Jon Beck

Trad climber
Oceanside
Jul 15, 2013 - 09:18am PT
and the courts didnt afford me shit

It is your attorney's fault, sue him.
E

Ice climber
mogollon rim
Jul 15, 2013 - 10:15am PT
My experience with this type of situation is
like posting on the internet
dont do anything that you might regret later
if you walk away... you have the moral high ground
200 bucks is not worth the problems that will arise if you do anything
however calling at about 3 am for a week will usually work
plus invoicing.
always be really nice because one job leads to another...you dont want to
break the chain.

contractor/psycologist is the name of the game.
just my 2 cents after 23 years of business.

EE
Norwegian

Trad climber
dancin on the tip of god's middle finger
Topic Author's Reply - Jul 15, 2013 - 10:25am PT
i made one more effort
to accomodate the client.
i told him that im not rich either,
and that i understand his financial situation,
so i'd be happy lowering the fee to 50 bucks.

2 days later, no call back.
so i resort to retaliation,


this morning i dropped a phone tip
to the building department with the address of
the dude's backwoods trailer set up
and hillbilly septic / leach field, and many other
no-no's.

the war starts here, f*#ker (right bluering?)


shame on me,
im sure there will forever be
excrement in my eternal fan.
Gunkie

Trad climber
East Coast US
Jul 15, 2013 - 10:30am PT
Wow, you west coast guys are a trip :)

As the Staten Island saying goes, "accidents happen, fires can start anywhere."
Reeotch

Trad climber
4 Corners Area
Jul 15, 2013 - 10:49am PT
Classic! Good for you norwegian.

These folks just sound like freeloaders. If you are going to live that way, it is best not piss people off who help you out.

I assume you've written off the $200 . . .
Peter Haan

Trad climber
Santa Cruz, CA
Jul 15, 2013 - 10:50am PT
Good Norweeg. Don't be surprised if you get some blow-back from the deadbeats somehow, so be ready. You are obviously the complainant though your complaint is strictly anonymous.

In California Contractors law (Business and Professional Code #7048), because your work was less than $500, you can meanwhile sue them in your county or city. It is quite easy to do this also and since the money was the original problem, don't slough off now and not sue them. You don't use a lawyer in Small Claims. It is cheap. When they fail to appear and you get a default judgement on their assets, there are a number of ways of proceeding. It usually works well.
thekidcormier

Gym climber
squamish, b.c.
Jul 15, 2013 - 10:50am PT
Part of being in business sometimes is dealin with loss. Sometimes it's temporary and they pay when they can, or they just continue to dodge you.

Running a legit business it's best to just move on to the next job.
E

Ice climber
mogollon rim
Jul 15, 2013 - 10:50am PT
trailer set up!
hum? client with questionable integrity
carry on and keep posting details
justthemaid

climber
Jim Henson's Basement
Jul 15, 2013 - 10:51am PT
I usually start out real nice.. persistent but polite reminder phone calls, re-invoicing. Guilt does eventually get to some people.

If a few months go by and they absolutely refuse to pay.. I've been know to resort to retaliation as well. Petty I know.. but it makes you feel better when you're getting stiffed and you've tried to be reasonable.

I had a client refuse to pay a balance once a stained glass window was installed. I went and un-installed it leaving a big hole in the front of her house. Got my money the next day. I've called a building inspector on an a-hole contractor building without permits who refused to pay a $2000.00 balance. I had a client refuse to pay the agreed amount after a window repair one time. I got tired of the guy trying to bully me into 1/5 the price and simply put a hammer through the glass...and then called the only other repair place in town and told them to charge the jerk triple when he called.
Norwegian

Trad climber
dancin on the tip of god's middle finger
Topic Author's Reply - Jul 15, 2013 - 11:09am PT
russ you talking about clance?
huh, im really dumb, and i have zero wit and even lace on
the fringes of my undrgarment, so your suggestion
merged with my psychedelic flashbacks
and now nonsense prevails once again.

peter i can endure blowback. i work from home and squat the
premisis pretty much constantly.
i've actually had some blowback from our lovely supertopo
crew when i got caught up in spat about bolts being drilled
next to our local cracks.

i say bring it, i got war in my blood and it aint ever
allowed to flow much anymore.


i know for a fact the internet service that i hooked up for the fella
runs 95 a month.

so his song of low cash flow is crockpot of steaming shite.
he can eat that slow cooked pile for dinner.

and i'll dine on my graphite dusted will.
Reilly

Mountain climber
The Other Monrovia- CA
Jul 15, 2013 - 11:35am PT
I was back 'home' in Chicago a few years ago talking to my cousin. He was
telling me that his lawyer dropped by his office a few weeks before and he
was bitching to his lawyer about some deadbeat business clients. When he
mentioned this one 'company' his lawyer's eyes narrowed and he said,

"Dale, I wouldn't press those guys for that four grand too hard. You know
what I mean?"

You gotta know who you're doin' business with, even in California.
Hawkeye

climber
State of Mine
Jul 15, 2013 - 11:38am PT
this morning i dropped a phone tip
to the building department with the address of
the dude's backwoods trailer set up
and hillbilly septic / leach field, and many other
no-no's.

the war starts here, f*#ker (right bluering?)

why didnt you tell the dude that you would report him if he didnt pay up? that way you get your money....
Barbarian

climber
Jul 15, 2013 - 12:49pm PT
Friend of mine was a paint and body man. He did some extensive work repairing a custom paint job a Mercedes - The car had been keyed by someone who had a beef with the owner. The car owner paid him by check and stopped payment. After many unsuccessful attempts to collect the debt, my friend informs the car owner that he was going to "reposess" all the work he had done. The car owner still refused to pay and my friend went over to his place of business with a little 60 grit and performed the deed.

No money, but tons of satisfaction!

BTW, he also notified the other shops in the area that the car owner was not to be trusted, so he had a bit of trouble getting the work re-done.
phylp

Trad climber
Millbrae, CA
Jul 15, 2013 - 01:58pm PT
I learned a lot on that trip. From that point on every international trip I guided was cash up front.

Weeg, just skimmed through this...

I suppose it depends what kind of business you do but for my work I only do work on retainer - I require payment for a certain number of hours in advance.
darkmagus

Mountain climber
San Diego, CA
Jul 15, 2013 - 02:46pm PT
Has it been mentioned yet...? Small Claims Court!

It's designed for the scenario in which you KNOW you will win the case if you can only take the offending party to task on it...

They'll be ordered to pay your court costs in addition to the rest. That'll learn 'em.
labrat

Trad climber
Auburn, CA
Jul 15, 2013 - 04:07pm PT
Small Claims Court if the person has a job that you know about so you can attach his or her wages.......

It takes a bit of time and trouble but it works.
JEleazarian

Trad climber
Fresno CA
Jul 15, 2013 - 05:28pm PT
why didnt you tell the dude that you would report him if he didnt pay up? that way you get your money...

The short answer is that blackmail is illegal in all 50 states. The rest of this response assumes you're in California.

I've sat as a judge pro tem in small claims court many times over several years. From what you've posted, Weege, you'd get a judgment that would include both the $200.00 and the costs of filing and serving the small claims complaint. Note, though, that the defendants have an absolute right to demand a trial de novo if they lose. That trial would be in the regular court and attorneys may participate, although for $200.00 I doubt that they would.

The trick comes after that; you need to collect. From my perspective of 34 years in the law of debtor-creditor relations, I rather suspect that they can't pay, at least now.

I have never had to deal with an unpaid dish installer, so I can't say whether you need a license to assert a mechanic's lien in your situation, but I rather doubt it. California Civil Code Sections 3110 and the following sections probably answer that question, and you can get official copies of the code sections for free on the internet at this site:

http://leginfo.legislature.ca.gov/faces/codes.xhtml

Ultimately, though, I find myself in the curious position of agreeing with rSin: Your best strategy is knowing when to say "no" to a potential client.

That said, if you choose to pursue small claims and want some free help, send me a message, and I would be glad to do what I can.

John
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