As a one man shop (up until a week ago - I finally hired an apprentice)I've learned that the best thing to do when a customer shows ANY hestiation at paying out the contract is to get in my vehicle and immediately go to small claims court and file both a claim for final payment and put a lien on the property. I make a point of telling the customer exactly where I'm going and what I am going to do and what the repercussions of non-payment are going to be.
I won't put up with pussy-footing around with a "reneg" on the contract, and I carefully and fully explain that to the customer before any work starts. One of the things on my pre-work checklist that I always mention is the civil action that WILL result from non-payment. I make a point of it, while trying to be as polite about it as I can and explain that both the customer and I are under an obligation to uphold the terms of the contract.
I also explain to the customer (mostly home-owners) that there is an option for them if I don't uphold my end of the contract as well and that they have as much legal right to sue me as I do them if the work is not completed as we have precisely agreed to. In the last 208 jobs I haven't had a problem.
209 jobs ago was my first one.
I was paid in two days. (And yes, I did go back and look at my work contracts and did count them). I haven't had one since then.
Out of all the estimates and contracts I've taken on, I've never had anyone back out from this approach, to the point that about 90% of the folks I deal with have thanked me for my honesty and told me to carry on.
Hope that helps in the future.
