Getting paid...I hope

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VoltzElectric

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Location
Hudsonville Michigan
Looking for advice. Recently did a large job wiring up a multilevel bar. I provided a written quote, and we agreed on pricing and such. Upon starting the job, the original timeline was 3 months. it got bumped up to having to be done in 5 weeks. But......I had to wait for framers, and other trades to finish their rough in. So, im down to 2 1/2 weeks to finish, and everyday more and more gets added on, engineering prints change due to city planning and zoning, and the job triples in price. I keep telling the owner its getting very expensive, i feed him some numbers along the way. Now, the bar is done, i hit my dates, but had to hire some other electricians to help in the time crunched allotment. I explained before i hired them that skilled trades were not cheap, and to hit his deadline they were going to cost a pretty penny.

So....We have a temp. occupancy to let the bar open (my inspector came through, had a few minor things to finish up), and I am ready to call for my final sign off. The problem lies here........Due to the job price going way out of control, the other trades ran into the same thing, and the owners budget is off by approx. 100k. He is out of money, and owes me approx 20k. My options are do I not get the final until i get my money, or get the final let him open and make money to pay me..........and the other 1000 people he owes money to. I know he should have stopped production if he didnt have funds, but I dont want to piss him off so that im the last one to get paid (if I do). ...anybody else ever been in the situation.

Side note: Have done some work in the past for him, and have developed a friendship with him, he has always paid in the past. My mistake......agreed to the quote, but never signed a contract:mad:...
My bad.....
so....in a nut shell.......final or no final?
oh, and I am filing out paperwork to put a lein on the place (should have done that at the begining):)
 
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VoltzElectric

Member
Location
Hudsonville Michigan
One other thing..........part of the bar is a private bar that will be financed by "Members". The concept of this bar is with 40 members and the owner that the bar will be paid off 100% thus withstanding any economic swing. But.........only has a few investors and he spent their money already....says hes expecting more any time now....(25k per membership.......if he gets anyone else to sign up).......im worried though that if i give final, I have no more negotiating room with him, and offer him no incentive to pay me in a timely manner.
 
mcclary's electrical

mcclary's electrical

Senior Member
Location
VA
VoltzElectric said:
Looking for advice. Recently did a large job wiring up a multilevel bar. I provided a written quote, and we agreed on pricing and such. Upon starting the job, the original timeline was 3 months. it got bumped up to having to be done in 5 weeks. But......I had to wait for framers, and other trades to finish their rough in. So, im down to 2 1/2 weeks to finish, and everyday more and more gets added on, engineering prints change due to city planning and zoning, and the job triples in price. I keep telling the owner its getting very expensive, i feed him some numbers along the way. Now, the bar is done, i hit my dates, but had to hire some other electricians to help in the time crunched allotment. I explained before i hired them that skilled trades were not cheap, and to hit his deadline they were going to cost a pretty penny.

So....We have a temp. occupancy to let the bar open (my inspector came through, had a few minor things to finish up), and I am ready to call for my final sign off. The problem lies here........Due to the job price going way out of control, the other trades ran into the same thing, and the owners budget is off by approx. 100k. He is out of money, and owes me approx 20k. My options are do I not get the final until i get my money, or get the final let him open and make money to pay me..........and the other 1000 people he owes money to. I know he should have stopped production if he didnt have funds, but I dont want to piss him off so that im the last one to get paid (if I do). ...anybody else ever been in the situation.

Side note: Have done some work in the past for him, and have developed a friendship with him, he has always paid in the past. My mistake......agreed to the quote, but never signed a contract:mad:...
My bad.....
so....in a nut shell.......final or no final?
oh, and I am filing out paperwork to put a lein on the place (should have done that at the begining):)
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Restaurants are the worst!!! Their famous for this happening. I'm working on one in charlottesville that is the same way right now. I'm been in your situation last year. I let the owner get his inspaections and get operating. HE DID PAY, even though it was slow. It was about $6,000. That's alot less than yours, so I'm not sure what to tell you other than restaurants/bars, it happens all the time.
 
W

wireguru

Senior Member
i wouldnt worry too much about withholding the final, he can just as easily get a new permit and new contractor to finish up after you.

You need to protect your interests NOW or you will be chasing your money long after the place is out of business. You dont want to wait and end up at the back of the line behind other trades and vendors he owes. Once a bar is in financial trouble it is very hard for the owners to line up more investors, and any sort of bank financing for the restaurant/bar business is pretty much nonexistant.

I would immediately retain an attorney, prepare a lawsuit against the owner alleging fraud so you can go after triple damages, then give the owner an option of entering into a repayment agreement with you paying X dollars a month, and you receive a security interest in his assets (both the bar' entity, and his personal assets -down to his kids toys (yes harsh, but he is taking food off your table)) The threat of suit will be good leverage at the stage he is at, because he sure wont be able to get any investors or loans if he is being sued. Whatever you do, dont fall for the 'just one more month, i have an investor the money is coming soon' move NOW.
 
H

hardworkingstiff

Senior Member
Location
Wilmington, NC
What about asking for a personal guarantee prior to getting your inspection? See if he is willing to put up his personal assets as a guarantee?

Edit: Of course, in writing and notarized.
 
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VoltzElectric

Member
Location
Hudsonville Michigan
oh..........did i also mention that hes an attorney. LOL. When I dig my holes, i dig them deep!!!!

Triple the damages? Thats if he doesnt file for bankrupcy or something like that. I wonder if he would just try to litigate me to death and make it so the 20k would be eaten up in a lawsuit.
 
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wireguru

Senior Member
VoltzElectric said:
oh..........did i also mention that hes an attorney. LOL. When I dig my holes, i dig them deep!!!!

Triple the damages? Thats if he doesnt file for bankrupcy or something like that. I wonder if he would just try to litigate me to death and make it so the 20k would be eaten up in a lawsuit.
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ugh....an attorney bar owner???
 
V

VoltzElectric

Member
Location
Hudsonville Michigan
He was an investor several years back, and the original owner got into financial trouble and he ended up with the bar. SO, hes making the most of it and taking it from a small sports bar to a multilevel bar with bars within the bar.......ON MY FRICKIN DIME! I should get some stock out of this or something
 
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