Gave a wanna be “contractor” an invoice three weeks ago. We are siding a spec house. We keep getting the run around about getting paid. Didn’t get a down payment becase he said he had been taken by siders before. How do you deal with this situation?
Thanks,
Dave
Edited 6/6/2007 2:37 pm ET by ganjo
Replies
Our terms are net 30, What were yours? Were you clear at begining of job?
Our terms are "due upon receipt". Staes it clearly on the invoice and in the contract.
http://courts.mt.gov/how_do.asp
I prefer municipal court. It's quick and easy to make your case when you have the proper signed documents. Just receiving a summons is usually enough to get action from such people.
The link above will explain how it's done out your way.
"Justice delayed is justice denied." William E. Gladstone
I'm new to being self employed. Usually just charge materials, because I haven't had to work for anyone I don't trust! Yet.
net 30? does this mean 30% down?
Thanks in advance for sharing this knowledge!
dave
Its a horse thing!
net 30 Means balance due within 30 days of completion.
another one you might see is 2/10 net 30 or some fashion there of.
Most of our suppliers offer it, which means we get a 2% discount if we pay in 10 days, if not payment is expected in 30 days.
We pay many bills on a company rewards card, when doing that we usually loose the 2/10 because it costs our sub/supplier roughly that amount in credit card fees.
I'd strongly urge you never allow someone to dictate your terms of business in the future. So if they don't want to put the money down then you don't do business.
The company I work for ALWAYS gets a deposit, even for a 4 hour T&M job. It might only be $100.00 down, but it's something. On the other hand we rarely give a down-payment to our trade contractors or suppliers, however those that require them we don't argue with.
As for the guy who's not paying you. 1) file the lien and check into your local laws to find out what the rules are. 2) become a pain in his asz, call him daily, on his cell phone, his home phone, if he has one his office line. last, and I'm not sure if this legal or not, but I'd call the bank holding the note on the property and inform them you have not been paid and have filed the lien.
gotcha! So if I claim 30 net,, I'll make sure to up the price from day one to cover the interest hanging on my credit cards! Golly, I wish they taught buisness in tradeschool!
just got the gerstrel book. Seems like its laid out pretty well. I should incorporate,
then get some staff,, but not before getting some nice juicy jobs eh?
Thanks for helpin' out the young (ish) guy!
dave
Its a horse thing!
to cover the interest hanging on my credit cards
That's a dangerous road to travel down in my opinion and the very reason you need the down-payment, at least until your cash flow is so that you are not personally financing other peoples projects.
To be honest I'm most sure why more trade contractors do not require a deposit, other then most GC's would throw a sht storm. ;)
I noticed your in Canada, so I have no idea what the rules are up there but you may want to consult other contractors and/or a lawyer to find out what your local laws are for interest.
There are a number of Canadian contractors on here that may be able to help more.
Good luck to you, there are several people here much more qualified to talk business then myself.
And for the record, you're older then me ;)
Spent a few years snowboarding, mountain biking, kite building, then had a run of making beer and wine. Got into a reno- apprenticship when my first child came around! So late start! No regrets, except not buying houses sooner! Its a horse thing!
Give fair warning of the threat to lien. Then file the lien.
Then if he hasn't done anything by open house show date. Stand in front of the house with protest signs stating he's not paid you.
Give know quarter to slackers. This might be the most valuable lesson a contractor wannabee could learn.
He might even send you a thank-you card after it's all over.