# Problems getting paid



## Wilsjac1 (Nov 6, 2015)

So I run a medium sized renovations company about 12 guys, almost all parts of my business is running smoothly except for I am having problems getting people to pay me when work is completed and the customer is satisfied, a lot of them just give me excuses why they can't pay me. It is starting to become a serious problem. Any suggestions on how or what I should do to keep this from happening, or is there anything i can do?
Thanks for any help I can get


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## heavy_d (Dec 4, 2012)

What seems to be the common theme among these customers that won't pay? You get progress payments throughout the job right, and they just don't want to pay the final?


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## griz (Nov 26, 2009)

How does your contract language cover this issue?


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## TNTRenovate (Aug 19, 2010)

I have never had an issue getting paid so I can't help much.

How do you qualify your clients? Seems to me that you are hiring the wrong clientele.


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## barnabas (Nov 16, 2013)

All in the contract wording, and what your state allows. Payment at signing of contract, payment on material delivery, payment upon substantial completion. < Yes my contract allows me to get paid before the job is finished. I dont do that but it allows me an out if i have a problem customer or just need it for my own protection. 

Its all in the contract. here in MD its against my license to do work without one.


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## griz (Nov 26, 2009)

TNTSERVICES said:


> I have never had an issue getting paid so I can't help much.
> 
> How do you qualify your clients? Seems to me that you are hiring the wrong clientele.


Yea, something doesn't seem right.

You got the job, finished as promised, no issues, client happy, why would there be a problem getting paid?

WHAT DOES YOUR CONTRACT SAY ABOUT PAYMENT???????


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## Wilsjac1 (Nov 6, 2015)

heavy_d said:


> What seems to be the common theme among these customers that won't pay? You get progress payments throughout the job right, and they just don't want to pay the final?


Yes I get progress payments throughout the large jobs but most of my remodels that I am having problems with are only one day to one week jobs so I require 50% down and 50 % when completed and that obviously is not working


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## griz (Nov 26, 2009)

Do you even have a contract?


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## Wilsjac1 (Nov 6, 2015)

Yes I have contracts on all my jobs, it might need to be revised but right now if someone does not pay me it takes me 90 days just to get them to court and then it can take up to another 6 months to actually get all my money out of them


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## heavy_d (Dec 4, 2012)

Wilsjac1 said:


> Yes I get progress payments throughout the large jobs but most of my remodels that I am having problems with are only one day to one week jobs so I require 50% down and 50 % when completed and that obviously is not working


What is a 1 day remodel? Changing some baseboard? So it is your smaller jobs that are resulting in no pay.. You see, I believe you already know the answer to your problem. The answer is always staring us right in the face, we usually just decide to ignore it (or hide from it). You probably aren't using a contract for these small jobs, right?

No matter how small a job, if it is for a first-time client I will always bust out a contract. 

You have given us very little information, probably for a reason.


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## Wilsjac1 (Nov 6, 2015)

So it sounds like I have contract issues obviously, so any suggestions on how to make my contract better, more bullet proof? I should probably see my lawyer about that though haha


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## heavy_d (Dec 4, 2012)

Wilsjac1 said:


> Yes I have contracts on all my jobs, it might need to be revised but right now if someone does not pay me it takes me 90 days just to get them to court and then it can take up to another 6 months to actually get all my money out of them


Okay good you have contracts. So why aren't they paying??? Give us an example of what they say... 

"Oh I can't pay you today because I spent all my money on twinkies", or "Oh I can't pay you because you did a horrible job and I hate you"


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## heavy_d (Dec 4, 2012)

Wilsjac1 said:


> So it sounds like I have contract issues obviously, so any suggestions on how to make my contract better, more bullet proof? I should probably see my lawyer about that though haha


We haven't seen your contract.......... How could we make it better? You leave out this many details on your jobsites?


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## Wilsjac1 (Nov 6, 2015)

heavy_d said:


> Okay good you have contracts. So why aren't they paying??? Give us an example of what they say...
> 
> "Oh I can't pay you today because I spent all my money on twinkies", or "Oh I can't pay you because you did a horrible job and I hate you"


Pretty much the Twinkie example, I very rarely have complaints about quality and if I do I make it right. I think my problem is they just don't have the money a lot of them after the job is done ask me if they can make payments to me on the remainder of the balance, I have even had one guy tell me that he figured if he did not pay me I would just send him to collections and he did not care. Is there a way I can make sure people have the money before I do the work like have money put in a escrow of some sort?


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## TNTRenovate (Aug 19, 2010)

I am not sure how you walk out without getting paid. A contract is crap if the guy enforcing it is spineless. You have to stand there and demand to get paid. If they don't tell them that you are going to call the police for theft of services. (It doesn't hold much water, but it might be enough to scare them into writing a check). Let them know that if there is an issue with the check (not clearing) you will not only file charges for theft of services you will also be filing check fraud charges for knowingly writing a bad check.

You really need to be ready and able to ask for your money. Seems like you are just dropping your head and kicking the ground waiting for them to do the right thing. People will walk all over a door mat.


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## Wilsjac1 (Nov 6, 2015)

heavy_d said:


> We haven't seen your contract.......... How could we make it better? You leave out this many details on your jobsites?


I apologize I am using my iPad in bed and can't type very fast on it so I am trying to sum everything up. A lot of these people act like a contract does not mean anything to them. And i always win in court but I don't want to have to take everyone to court In order to get paid it is a huge hassle, waste of time, and holds my money up so i am looking for a solution to eliminate this it might be a contract issue it might be I just do work for a bunch of sleaze bags.


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## Wilsjac1 (Nov 6, 2015)

TNTSERVICES said:


> I am not sure how you walk out without getting paid. A contract is crap if the guy enforcing it is spineless. You have to stand there and demand to get paid. If they don't tell them that you are going to call the police for theft of services. (It doesn't hold much water, but it might be enough to scare them into writing a check). Let them know that if there is an issue with the check (not clearing) you will not only file charges for theft of services you will also be filing check fraud charges for knowingly writing a bad check.
> 
> You really need to be ready and able to ask for your money. Seems like you are just dropping your head and kicking the ground waiting for them to do the right thing. People will walk all over a door mat.


You are right I definitely need to improve in that aspect i never thought about that


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## thehockeydman (Dec 19, 2012)

heavy_d said:


> ....You leave out this many details on your jobsites?


What's with the aggression? Are you personally invested in his business? No need for it.

TNT is right. If the problem actually is that your customers are giving you BS excuses, you need to start coming across as more heavy-handed. That, and perhaps you need to look at how you qualify your customers. A BS detector is as valuable a tool as any other.

This should not be a problem you have on a regular basis.


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## heavy_d (Dec 4, 2012)

thehockeydman said:


> What's with the aggression? Are you personally invested in his business? No need for it.
> 
> TNT is right. If the problem actually is that your customers are giving you BS excuses, you need to start coming across as more heavy-handed. That, and perhaps you need to look at how you qualify your customers. A BS detector is as valuable a tool as any other.
> 
> This should not be a problem you have on a regular basis.


I don't put Agression in text on websites. I save it for my wife and dog. Just kidding.


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## Anthill (Mar 23, 2013)

You need to quit working for those kind. Raise your rates or get payment in advance or something. By taking those jobs you just leave a trail of pain. Even if you do get paid after court and all that, its not likely that they'll refer you to others (not that you want to work for their friends anyways). If every job ends in a fight then fix it or get out.


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