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#33831 - 01/28/04 04:13 PM Deadbeat contractors
johnd24 Offline
Member

Registered: 07/11/01
Posts: 66
Just wondering how some of you deal with contractors that you sub for deal with not getting paid.I have talked to a couple of lawyers and they say i can sue and win but when your dealing with theses type of contractors they know that it doesnt meen i'll get paid...any advice would be helpful.
I live in ohio if that helps.

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#33832 - 01/28/04 04:31 PM Re: Deadbeat contractors
HotLine1 Offline

Member

Registered: 04/03/02
Posts: 6804
Loc: Brick, NJ USA
JohnD24:

You ask a tough question....the method that I used is as follows:

Our Association (NJECA) has a collection agency, and if necessary a lawyer that 'assist' the electrical contractor members. The agency works on a commision, of what they collect, and need be the attorney works for a percentage of what he collects also. (NO out of pocket costs)

The best solution is to steer clear of the deadbeats. Other EC's (your competitors) MAY spread the word of the deadbeats, if you talk to them.

Luckily, I have a very good customer base now, and don't have these problems anymore. The bad apples were weeded out, I took my lumps, got what I could. Recently got a check from a bad debt from 8 yrs ago. Had a lein on the guys house, he wanted to re-finance, the lein showed up in the title search, I got $$$, and yes, the agency got there cut....they did all the legwork, paperwork, etc.

Be careful & good luck

John
_________________________
John

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#33833 - 01/28/04 04:55 PM Re: Deadbeat contractors
sparky Offline
Member

Registered: 10/18/00
Posts: 5545
i had inquired to a number of collection agencies , many of whom had letter writting campaigns focusing on customer retention.


i couldn't quite figure out the rationale of sucking up to someone that was screwing me so i passed them on

until one young man (who came to my office)informed me that his agency was not to be used unless i wanted to 'go for the throat'

after some background checks (BBB, state AG, and the locl cop shop for any known body count) i signed on...


btw~
note on the mech liens, you loose if the dwelling goes up for tax sale folks!

(unless your the winning bid, yet even then they can exercise right of redemption)

~S~

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#33834 - 01/28/04 06:26 PM Re: Deadbeat contractors
johnd24 Offline
Member

Registered: 07/11/01
Posts: 66
We can lein and sue but that does not force them to pay us what were owed.We have no rights,even if we have a written contract.
I guess all we can do is look for the aces in the deck and do some weeding....I think we can also use inspections as a meens of getting paid...like final inspection when paid in full......its a shame that it has to be that way...thanks guys

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#33835 - 01/28/04 07:20 PM Re: Deadbeat contractors
Attic Rat Offline
Member

Registered: 12/14/03
Posts: 530
Loc: Bergen Co.,N.J. USA
..John, I got stiffed 1-1/2 yrs ago for $6000.00 and although I pursued the S.O.B., he sure enough went belly up on me and declared bankruptcy..I should've seen the warning signs..he started shafting the home owners first, then us, the tradesmen...We're thinking he's just gonna high-tail it back to Poland, and live like a Czar, with the money he stole from everyone...I was naive,..that was my fault,..he took advantage of a good soul, and he'll get his in the end...I've learned alot from this, and now it's no more Mr. Nice Electrician,...Money up front,...or...so long..from now on...
..It's a terrible thing when someone ruins something for everybody else...
AR
_________________________
.."if it ain't fixed,don't break it...call a Licensed Electrician"

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#33836 - 01/29/04 04:01 AM Re: Deadbeat contractors
sparky Offline
Member

Registered: 10/18/00
Posts: 5545
 Quote:
no more Mr. Nice Electrician


i like it!, maybe i'll alter my biz card Attic Rat...

~S~

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#33837 - 01/29/04 04:31 AM Re: Deadbeat contractors
cavo148 Offline
Member

Registered: 01/19/04
Posts: 79
Loc: New Jersey
I could never figure out why so many well established electricians paid for such expensive ads in the yellow pages, then a friend/elec.contractor told me why. He said it was better business to deal with the end user, the customer, directly. He had many financial difficulties working as a sub for contractors, late payments or being practically held hostage for your money and having to do some unpaid extras to get full payment. It's best only to work for GC's you know. Sometimes you have to ask yourself why a GC, whom you never met before, wants to give you the new guy thousands of dollars worth of work. He most likely thinks he will make more money for himself with you, one way or another!

Andy

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#33838 - 01/29/04 04:48 AM Re: Deadbeat contractors
johnd24 Offline
Member

Registered: 07/11/01
Posts: 66
Amen brother...........How do you go about setting up a pay schedule with a new gc that you are leary about?

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#33839 - 01/29/04 05:09 AM Re: Deadbeat contractors
Attic Rat Offline
Member

Registered: 12/14/03
Posts: 530
Loc: Bergen Co.,N.J. USA
..Whats wrong with asking for references???
They'd ask you,if they were so inclined to..
If I were getting together with a new GC,and he's proposing some "big" work, I'd run a check on him fer sure!!,,also it helps if its a larger company..These little fly-by- nite guys scare me...I've had one GC,for about 2 years now,and its good work..at least I know him and his company, and it doesn't hurt so much when he penny-pinches now and then...at least I know what I'm in for,and I guess you can say, I'm used to it..at very least,he pays...which is more than I can say about some other people...
AR
_________________________
.."if it ain't fixed,don't break it...call a Licensed Electrician"

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#33840 - 01/29/04 05:16 AM Re: Deadbeat contractors
earlydean Offline
Member

Registered: 12/22/03
Posts: 749
Loc: Griswold, CT, USA
This is an age old problem.
I remember my first year of apprenticeship ('71) and the contractor I worked for (Wasatch Electric)had us load up all of our material we had just unloaded the week before, park the trucks at the shop, and sent us to a job in the next town. Seems the general contractor was late on his payment. Three days later all was well, and we finished Salt Lake's First Hilton Hotel on time.
Sometimes you gotta send a message to the GC. BTW, all the trades pulled out together. There is power in unity.
Earl
_________________________
Earl

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