I've been stiffed on a $1200 dollar bill by a homeowner for work on an addition to his home.I didn't have a detailed written contract,just a written estimate and a gentlemens handshake to seal the deal.He says I'll never see the money...so I brought him to small claims court...which I have been to 4 times already and the case hasn't been heard yet.This is the 1st time in my 18 years that I've been stiffed on a bill.Other contractors have said that I should have just put a LIEN on his house.I work in Massachusetts.

What do you do to collect from deadbeat homeowners???

I work for ECs so this has not happened to me. However I have had to go to small claims court in Mass. before.

I recommend that you have any slips for stock with you with the items you installed clearly highlighted. I would also have pictures of the addition, even if just from the outside, it will be hard for this person to convince a judge that the addition in the picture has no electric.

When I went to court I won and I feel this is in part due to having as much info with me as possible.

Did you pull a permit? Did anyone?

If there where no permits pulled this could be a real issue for you and the homeowner.

Good Luck, Bob

Personally I would take my German Sheperds over there and let them have their way with him (I'd like to anyway).

You don't let these things happen to you. You sign and detail EVERYTHING and you definitely pull permits when you have to.

You can still put a lien on his property and take him to court.

I have never not gotten paid. One time this dirtbag tried but I set him straight in a hurry. Also, certain commercial service companies that I sometimes agree to do calls for try to screw me out of money but then I threaten to go to the Walgreens or the CVS or whatever and EXPOSE THEM and wouldn't you know....the check is in the PO box in a day.....
Strange the way people will pay their bills if you approach things right...

Even if this guy ends up screwing you, you'd better learn from this one and don't allow it to happen again!

;~0

Get a lien .In West Virginia with a lien you will eventualy get your money. Here you can go to the courthouse and look about other liens on the property.I did a job onetime and got 1/2 of the money about 6 months later I had a lein put on the property .When I looked in the record book it looked like everyone he had delth with had a lein on the property. later on he needed a loan the finance co called me about him. I did get my money then. In WV you are not notified that there is a lein until it is to someone else tells you like a bank,finance co,ect. Also keep track of your hours involved in the collection process charge him for that too.This is time you could be working for a paying customer. I dont want to offend you but sometimes you have to think like a lawyer.

Be aware that you need to get your lein on the property within a certain amount of tome. Consult an attorney and next time stick with written contracts.

Unfortunately, if you're in your own business, collection is part of the business. Also, forget those litte demons that tell you to rip out your work. It won't look good to a judge and you'll pay much more later.

I've only had to lein two properties in twenty years. One I got paid for and the other I didn't (bankrupcy). In total I've lost about $2,000 in twenty years, about half of it with that bankrupcy, and the rest from eight other deadbeats. I keep track of it as a percentage as cheap amusement.

Try to sharpen your intuition with new customers. Usually deadbeats will give some clues. If the early process of your business with them isn't going well (estimating, contracting, phone calls, etc.) then the work probably won't be any better.

I have to be especially careful when I'm hungry for work. It's still better to walk away from bad business.

Good Luck

Dave

quote
_____________________________________________"Try to sharpen your intuition with new customers. Usually deadbeats will give some clues. If the early process of your business with them isn't going well (estimating, contracting, phone calls, etc.) then the work probably won't be any better.

I have to be especially careful when I'm hungry for work. It's still better to walk away from bad business."

____________________________________________

Screen all your customers, Always Have a signed contract, with a deposit of 1/3 to 1/2 of the job cost, and never work without a permit.

If you go to court with a signed contract and a permit, with the estimated amount stated, you will be awarded you payment 99% of the time, and with these papers any collection agency will happy to collect for you, for a fee of course.

I never tried this but I just had an Idea. When you rent a car, equipment, or make reservations they take the customers credit card numbers as security. I know a merchant can also "precharge" something. That's where it is verified if the customer has the available credit on the card and will reduce their spending limit to that amount. Kinda like the card company holding the money.

Before the job starts get a credit card # otherwise payment is due beforehand. If the customer does not have the available credit or cash then you know right away.

The downsides are credit card service cost the merchant a percentage and monthly fees. That's why I don't take them. The card company can also charge back the merchant in a dispute.

Just a thought
Tom

Tom,

We do accept credit cards and it sure helps with additional business, and If you are offering a service, under a contract, put Installation Contract on the credit slip invoice, if there is a dispute, then contract law will determine the outcome, so always get a signed contract.

Call em back and tell him you forgot to tell him about your cousin who is a debt collector and his last name is Gambino.
They will gladly take care of it.

I did pull a permit on the job, and finished the rough stage of the work...and received rough payment.He owes me $1200 for finish work on the addition.The homeowner was acting as the GC for the addition and the job was very unorganized.
We go to court this week,unless he can come up with another excuse to delay the hearing.I'll post the results.
Does anyone know what the time limit for a LIEN is in Massachusetts?

shortcircuit

Two things I'm curious about:

Shortciruit: "He says I'll never see the money."

shortcircuit, was there some sort of incident that led to his posture? Did you guys have some falling out before he said this? Or do you think he planned it from the start?

CJS: "One time this dirtbag tried but I set him straight in a hurry."

CJS, Just for the amusement, what did you actually tell him?

[This message has been edited by MONOLITH (edited 09-26-2004).]

Shortcircuit, I feel your pain. Nothing worse than a deadbeat. Check out: www.mass.gov/legis/laws/mgl/gl-254-toc.htm
chapter 254 of the general laws of the Commonwealth. Look at section 1,2 ,4 & 8.

Also you may try getting your supply house to help collect your money. A friend here in MA. was being stuck by a local church. After the supply house informed the church a lien was being placed against them because the EC could not pay for his materials, checks started arriving real fast.

[This message has been edited by capt al (edited 09-26-2004).]

I won in small claims court!The deadbeat homeowner who stiffed me has to pay the $1200 plus court costs and interest.

So I finally got my day in court.We get into the room in front of the clerk and it goes like this:
clerk:has this been settled yet?
shortcircuit:no sir, it is not,I'm ready to move forward ( I then pull out 2 copys of all the paper work to back up my claim and give one to the clerk and 1 to the deadbeat homeowner)and before I say another word...
deadbeat:let me say something
clerk :Plaintiff talks first
deadbeat:Well I do owe him the money and he did do the work, but I'm not going to pay him
clerk:Why not?
deadbeat:because he is stupid (and he said this in a load voice and he is gettin hot around the collar,clerk looks over to the court officer and says "get ready")
clerk:WHAT
deadbeat:he says to me...remember the phone call on feb 5th
shortcircuit:I don't recall
deadbeat:well thats when you threatened me and told me I could not replace you because you had the permit on the job
clerk:he threatened you in what way,did he say he was going to kill you,or going to beat you up??
deadbeat:he said I couldn't replace him...
clerk:thats not a threat,you've said that you owe him the money,when can you pay him?
deadbeat:he shrugs his shoulders while shakeing his head
clerk:LISTEN(clerks pointing his finger at the deadbeat) you may have wasted his time,BUT YOUR NOT GOING TO WASTE THE COURTS TIME,payment is due in 30 days in the amount of $1200 plus court costs of $40...judgement for plaintiff

He says to me to have a seat and wait 5 minutes and has the court officer escort him out and they watch to see him get in his car and drive away then escort me out and watch me drive away.
Well, he can still appeal,but I don't think he has a pot to piss in after what he said in small claims court.
Justice is served

shortcircuit

[This message has been edited by shortcircuit (edited 10-01-2004).]

Good Job Shortcircuit! I had a deadbeat try the same thing a couple years ago. The judge told him to shut-up and pay his bill too.
KB

hi,
sorry to hear that you are having trouble. here is what i would do.

write the guy a letter explaining that you have to be paid for your work. now do not expect to be paid for substandard work. explain that if you do not get paid you will file a lien and take all necessary action to recover.

next, go get your self a written proposal or contract. NEVER do any work over $500-$1000 without a written agreement. this puts them on notice that your a business man and will use the legal system if needed.

try to be professional do not get into a big cuss out. do not threaten.

finally, GET A DEPOSIT NEXT TIME. I always get 40-60% UP FRONT...call it MOBILIZATION or whatever..

you wont be able to get attorneys fees if it is not spelled out in an agreement.

good luck

MUSTANG