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Ripped Off #158686 08/07/06 08:54 PM
Joined: Nov 2005
Posts: 186
HCE727 Offline OP
Member
What actions can you take when you do a job for a builder and he does not pay you. There was no contract, just a hand shake ( I know). I sent him Invioces, left messages, nothing. I have learned a lesson.


Hank
Business, Office, Estimating, Legal:
Re: Ripped Off #158687 08/07/06 09:00 PM
Joined: May 2005
Posts: 706
T
Tiger Offline
Member
Talk with a lawyer and discuss a Workman's Lien on the property. If you know the owner, send them a letter of Intent to Lien.

Good Luck.

Dave

Re: Ripped Off #158688 08/07/06 09:03 PM
Joined: Dec 2004
Posts: 1,064
D
Dnkldorf Offline
Member
Lien, before settlement.........

He can't sell it with a lien on it.

Re: Ripped Off #158689 08/07/06 11:34 PM
Joined: Jul 2002
Posts: 717
M
macmikeman Offline
Member
quote"also a credit check on any GC will help to avoid problems"

LK, have you actually ever been able to get a GC to submit himself to filling out a credit report application for you? You must meet up with much nicer contacts than I ever have.

Re: Ripped Off #158690 08/08/06 02:06 PM
Joined: Jun 2006
Posts: 34
CDS Offline
Member
Had similar situation .
Builder is not always the man with the money .
Find the property owner or if he has a financial backer . Be nice to them but explain that builder refused to pay and you would like to avoid taking a lien . They may talk to the builder and get better results than you will .
It could be that the financier is unaware of builders practices . If this works you get your money without law fees .
1. Don't eat yellow snow
2. don't trust builders [Linked Image]

Re: Ripped Off #158691 08/08/06 05:30 PM
Joined: Feb 2006
Posts: 138
P
PE&Master Offline
Member
Send M&M notice to GC and to homeowner.

Send it certified, return receipt requested. There's some specific wording you need to have in it but when the homeowner has to go to the Post Office to sign for a letter, he'll know you mean business.

If the homeowner knows you've done work in his house you should be good to lien it. There are very specific timing rules for notices so be carefull on not letting the timeline slide. GC's go to school to learn how to delay payments till it's too late or u get too busy to spend time to collect.

Re: Ripped Off #158692 08/08/06 07:40 PM
Joined: Jan 2003
Posts: 1,429
L
LK Offline
Member
In my state, you need to file the intent to lean, before you start the job, advance notice to consumer that you intend to place a lean on the property, it is like this in many other states, so check you state laws.

"LK, have you actually ever been able to get a GC to submit himself to filling out a credit report"

We have a credit agent, do the credit check, we let the GC know up front, that we will check his credit, if he refuse, then we just don't take the job.



[This message has been edited by LK (edited 09-20-2006).]

Re: Ripped Off #158693 08/08/06 07:57 PM
Joined: Jun 2004
Posts: 1,273
T
Tesla Offline
Member
Oral agreements are contracts...

If you have a contractor's license...

And if you performed...

You can legally claim.

Unsatisfied judgements are grounds for the GC to lose his license.

Unsatisfied judgements normally stand as claims against the real property, typically BEFORE all other debts as a 'mechanics lien'.

It's this preference that kills bankers interest in accepting a mortgagee position.

If the property is being financed... lien claims are a killer. ALL boilerplate from ANY lender REQUIRES that the borrower keep the property clear of all liens.

As general advice: never get so entangled with any specific contract that the cash flow ... or lack of... will bring you down.

Counting on EVERY customer/contractor to pay on time per the deal is a sure path to insolvency.

Any time the other party realizes that they have you over a cash flow barrel: you'll suffer.


Tesla
Re: Ripped Off #158694 08/11/06 07:13 AM
Joined: Apr 2005
Posts: 197
L
LearJet9 Offline
Member
We have found just a threat of a lien usually does the trick and when that fails, the actual lien really does the trick.

Re: Ripped Off #158695 09/10/06 09:02 AM
Joined: Aug 2006
Posts: 6
M
Minuteman Offline
Junior Member
Quote
What actions can you take when you do a job for a builder and he does not pay you. There was no contract, just a hand shake ( I know). I sent him Invioces, left messages, nothing. I have learned a lesson.


Another thing you could do is track him down and talk to him face to face. Take a witness (like your wife or a small man - so he won't feel intimidated.) Do not threaten him.

Hand him an invoice. He may say that he hasn't been paid or that he has had some other issue. If he cannot pay right now, get him to sign the invoice (acknowledging recept}. Now you have a contract.

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