Collecting Bad Debts

[blybrook PE]

If legal action doesn't get you payment, then it may be best to write it off and avoid all future contracts with the individual.

If you are one to retaliate; although not the ideal solution as it could bring legal action back on yourself for destruction of property, etc... There are a few different routes; none of which are considered legal that I know of. I won't even go into some of the different actions I'm aware of utilizing as it could cause issues with "lawyers" should something ever happen.

 

[pbrme]

^This

Chalk it up as a learning experience and write it off. If you can't put it to bed, and must meet the guy face to face, remember to be the better person. Bring copies of "the contract" and explain your stance. It might take some negotiation.

 

[RIP - VTEnviro]

Is this client simply short on cash or actively being a dick?

My last job was mostly public sector, so they pay up on time. But we did have a private client (small private school) that rang up a big bill and couldn't get funding for the project. We basically just went on an installment plan with them, they meant well, and paid when they could. Compare that to a big developer we once did work for (restaurants, hotels around New England) that was just a cheap bastard. We hit them with a retainer for a third of our estimated fee, and whenever we got close to that amount, we held the plans over them as leverage to get paid.

 

[MA_PE]

We've encountered clients that don't pay or are very sluggish to pay until they need us again for another project. Then they pay the outstanding balance in full and start the process over again. We tolerate it because they are a repetitive client and a good sized operation, but to me it's a crummy way of doing business. They just want to hang onto their cash and get the interest as long as they can. Not so much these days but a few years ago it could be significant.

 

[cdcengineer]

This guys is just being a dick. He has the money, but he feels that because I wasn't able to give him the answer he wanted, he didn't get any value. Therefore no payment.

I'll write it off, but not till I stop in and hand him the bill face to face. I won't do anything but I want him to feel like a dick in front of me so I can see him squirm. Small community equals bad reputation. I have been here for 18 years and will pass it along that he's a turd.

 

[EM_PS]

This guys is just being a dick. He has the money, but he feels that because I wasn't able to give him the answer he wanted, he didn't get any value.

Happens too many times to mention with surveys, when the corners don't fall where they thought they'd be, or wanted them to. In those instances a mechanic's lien on the property is always available...tho success of getting paid still up for grabs.

 

[MA_PE]

Small community equals bad reputation. I have been here for 18 years and will pass it along that he's a turd.

be prepared that he will tell anyone that listens that you do crappy work which is why he didn't pay. just sayin'

 

[cdcengineer]

Bring it. I can sling it with the best of em' I grew up in Lynn the city of sin. So I'm not letting the possibility of his slander stop me from sticking it in his face.

 

[YMZ PE]

I think it's good you're not going to blast him in the local scum alert. The high road, although not immediately satisfying, is always better.

 

[cdcengineer]

Does anyone have a generic mechanic's lien waiver form they can send me. The County recorder tells me it's a simple process. will type from scratch if necessary. Just fun giving him heartburn while I'm slow at work anyway.

 

[solomonb]

I would pass on doing anything. We got stuck the same way. Client was a "Good Christian", he and wifey both mentioned that 100x while we were discussting engagement. Things were tough, did not have funds now, however, would be able to pay in full in 3 months. We NORMALLY get a 50% up front payment, however, we waived it this time. Did the work-- which was kind of challenging, gave it to client. Client told everyone in town how happy they were with work.

Wifey got pictured in local woman's magazine, etc. etc.for being a business owner, etc.

3 months comes-- we go to collect-- firm shut down, no forwarding address, nothing. Started sending bills every month, never got any returned. 5 months into process, sent letter registered. Letter was returned, "Undeliverable."

Talked to lawyer-- he said go to small claims court. Looked at process, not onerous at all, however, did not do it. Turned client into collection agency. Lady at collection agency said that we were "way down the list" because everyone else in town was ahead of us.

BOTTOM LINE-- We wrote it off-- lost $~4000 on project-- real dollars for a small firm. Lesson learned-- ALWAYS get a retainer fee, no matter what. DO NOT BUY into the hard luck story, no matter how bad it sounds.

 

[cdcengineer]

Good advice