"That is not enough to get a lawyer involved, just turn it over to a collection agency and maybe you will get some of it back."
Once a collection agency get involved, nobody really wins either, but the agency will get paid no matter what the results are for either party, same as the lawyers.
When you get a collection agency involved, a few things may happen that may actually cause you to get no payment, what some don't understand is the credit reporting effect, lets say you turn over a payment for collection, the agency will then send in a credit report on the GC, now the GC who might of had a tempoary cash flow problem, now has a credit line problem, you just componded his ability to pay, and now with the higher credit line charges, money that he may have beeen able to pay you with is gone, it's now going to pay increased intrest charges, and this is what can put a small GC out of business, so before you shoot your foot off, try talking to the GC and ask if it is cash problems, and if it is, try to work out some terms that will assure payment.
A collection agency works, it gets you paid, if the party has the money, or makes sure you never see payment, by putting the party in a position that drives them out of business.
Another thing to think about, is this someone you would like to continue business with, if they are just going thru a cash flow crisis, collection agencies should be a last resort, only after all other options have run out.
[This message has been edited by LK (edited 03-08-2007).]
