ECN Forum Forums General Topics of the Trade Business Related Discussion trying to get payment from a gc

You can learn the greatest things from the most unusual places ....

If you saw the movie "Goodfellas," you saw a film based on the biography "Wiseguys." It is the story of a half-Italian kid, growing up into a fringe role in organized crime.

His mentor would often front the money to start a small business, such as a restaurant - then show up every week to collect his payment. According to the author, the same story played out again and again. After a few timely payments, the guy would come up short one week. A drop in business, unexpected expenses, all manner of stories. Some might even have been real. Yet, the response of the mobster was always the same: "Gee, that's too bad. Now where's my money?"

I think you see the point here. The whole purpose of working is to get paid. If you don't get paid, you won't be able to continue operations.

That said, be aware of what your local laws allow. For example, the fine print of our contracting law can allow the customer as much as 30 days to pay (depending on circumstances). You may not just 'stop work;' you need to have a 'legal reason.' Since the Contractors' board is not very explicit as to what they consider a 'legal reason,' you don't want to act rashly. A call to your board might be the best dime you'll ever drop.

I've been in the same boat before. It stinks. Your main problem here is you don't have a signed contract...The simplest thing to do is tell the G.C. you need to go take care of other jobs,and you may be off site for an undetermined amount of time. they will either expediate paying you or there will be some other guy there the next day. either way... your not giving away your services. The other thing that others have touched on here. Alot of larger companies don't pay the day they recieve the invoice. I've heard of a 90 day period. I personally would not do any more work for them, because i o u's don't pay my bills, not sure about you...

As others here have said, you need to do a few things now,
1) get a signed contract.
2) Find out who the bonding company is
3) Inform them that work will not resume untill all invoices are paid up to date.
4) future late payments will have late payment fees added and all work will stop untill paid in full including late fees.
5) find other work some place else.

First, u can't take down work you've put up. Once it's installed, it's no longer yours. Taking it down is illegal.

Walking off the job will result in contract cancellation in which you may never get paid (tried that one). They'll take your money and pay the next guy. Watch the contracts carefully, especially the AIA ones. They're not written fairly and take the side of the GC in all cases. You'll go broke signing them.

Clause like 'pay if paid' and no definite payment dates have always killed me. Ever wonder why the GC has a nicer office than you?

The bond company may take years to get money from (if at all), don't count on that as a guarentee. They have floors of lawyers that work at finding ways of not paying out.

We prefer to work for the owner and not dilute the relationship thru the GC.

No kidding. I'm spending over $30K a month in just basic overhead and that's without keeping fat inventories like I used to. Insurance and gasoline are out of control all by themselves, not to mention multiple licenses, exorbitant permit fees, office utilities and rent. I'd love to have low or no overhead, but it's against the law to operate that way in these parts.

GC's make their money off of their subs and they will squeeze them as much as they can. It is a fact of life. If you don't nail them down from day one, you will always be a puppet on their string. If you are good and offer fair (realistic, not low) pricing, they will respect your position and work with you. They need you as much as you need them. The low ballers are the ones that thy love to jerk around because they already know that you are desperate to be selling work for less than market value.

Price= Market value, not what low or no overhead allows. When a GC sees prices that are too good to be true, sure they will take advantage since low prices are usually indicative of a low budget for legal representation.

Too " low budget for legal representation."

Pretty much says it all.

This post just made me want to pay the 200+ an hour for the legal fees and go after the GC that did not pay me my final check. I am sick of the empty promises by this GC that owes me money. It sucks that con artist losers get away with crap like this. Honest people are becoming very hard to find.

Willfescon,
something is really wrong here... bonds don't kick in until a bailout is requested. if you have a long (one year) track record with this contractor and never had a problem with payment, talk to him about your concerns and, MAYBE give him the benefit of doubt. If you don't know him all that well, assume somethings up and demand payment on the work completed. simply tell him that you NEED "X" amount to continue, and no other explanation is necessary. and Talk to other subs, see if it's everyone or just you, but remember his subs maybe more loyal to the contractor than to you, so NO gossip.

Oh dear.

Willfescon,

Contracts, contrary to popular opinion, is NOT the be all and end all to your problem.

If the amount is less than $7,000 (in some states)you can still make a claim in small court. sometimes just the threat of legal action is enough to get paid. the judge will scold BOTH of you for not knowing better about haviong a signed agreement, but when that's done it will come down to the facts.

plenty of pictures, and paperwork, should get you paid plus time spent on court prep and show.