Holding My Cards Close

[magictolight.com]

We are 99% complete with a project for a large national retail store builder. We were supposed to collect 25% shortly after starting. We have not seen a penny on this job which is a $12k job for us. I called the project manager at the office Friday and let him know that we would not have a final inspection until I see a check for full payment on the job site. That set this desk jockey off because he knows that he can't get occupancy until I have my final inspection. We have more than held up our end and accommodated their schedule, jumped through all their paperwork hoops, and of course they have haven't paid, been very slow on signing change orders, made us fax our paperwork to them 6 times until we had it in "their" format, and on and on. Is this a good position for us to be in or is there something I may be overlooking, that is holding the "not getting a final until I see a check" card, or should I play my cards a little more loose?

 

[Gac66610]

We are 99% complete with a project for a large national retail store builder. We were supposed to collect 25% shortly after starting. We have not seen a penny on this job which is a $12k job for us. I called the project manager at the office Friday and let him know that we would not have a final inspection until I see a check for full payment on the job site. That set this desk jockey off because he knows that he can't get occupancy until I have my final inspection. We have more than held up our end and accommodated their schedule, jumped through all their paperwork hoops, and of course they have haven't paid, been very slow on signing change orders, made us fax our paperwork to them 6 times until we had it in "their" format, and on and on. Is this a good position for us to be in or is there something I may be overlooking, that is holding the "not getting a final until I see a check" card, or should I play my cards a little more loose?

have you done work for this company before and been paid?
have you talked to other subs to see if they have been paid?

i like your cards play them how you feel best, you can't work for nothing
:thumbsup:

 

[ramsy]

Ask your contruction/contract attorney --some offer free consultations-- how to follow up on that undocumented phone call. They may suggest to get your lien paperwork in order before final.

I'm having visions of a formal letter, which politely explains the building department suggests contract fullfilment/payment before final is authorized.

 

[satcom]

We are 99% complete with a project for a large national retail store builder. We were supposed to collect 25% shortly after starting. We have not seen a penny on this job which is a $12k job for us. I called the project manager at the office Friday and let him know that we would not have a final inspection until I see a check for full payment on the job site. That set this desk jockey off because he knows that he can't get occupancy until I have my final inspection. We have more than held up our end and accommodated their schedule, jumped through all their paperwork hoops, and of course they have haven't paid, been very slow on signing change orders, made us fax our paperwork to them 6 times until we had it in "their" format, and on and on. Is this a good position for us to be in or is there something I may be overlooking, that is holding the "not getting a final until I see a check" card, or should I play my cards a little more loose?

What kind of contract wording is "shortly after starting", it sure sounds like you din't have your own contract, or lawyer close the deal.

 

[Gac66610]

you could put a lien on the building, not sure of costs, i'm sure they vary
then you can tell them you'll sign a "lien waver" when you receive check

just dont walk away without something .... been there! :thumbsdown:

 

[jmellc]

You have less leverage the longer you wait. Making you jump all those hoops is a manipulator's game. They have no plans to pay you at all if they can help it. Get an attorney involved now, someone experienced in construction issues.

 

[satcom]

you could put a lien on the building, not sure of costs, i'm sure they vary
then you can tell them you'll sign a "lien waver" when you receive check

just dont walk away without something .... been there! :thumbsdown:

He may of needed an intent to lien, on file and agreed to, before the project started, we see a lot of guys all excited about getting a big project, they just follow the fox all the way to the hole.

 

[magictolight.com]

have you done work for this company before and been paid?
have you talked to other subs to see if they have been paid?

i like your cards play them how you feel best, you can't work for nothing
:thumbsup:

We have never done business with this company before. They keep telling me "we are a $150 million company. Of course, we'll pay."

 

[magictolight.com]

What kind of contract wording is "shortly after starting", it sure sounds like you din't have your own contract, or lawyer close the deal.

I was just paraphrasing. The contract read Payment at 25% and 75% and complete payment when punch list was complete. A little vague indeed, with the exception of final payment.

 

[satcom]

Yup, if he gets a lawyer involved now he may salvage some money from the project.

 

[magictolight.com]

He may of needed an intent to lien, on file and agreed to, before the project started, we see a lot of guys all excited about getting a big project, they just follow the fox all the way to the hole.

The general told me we could lien the project, just so I would get that final. I told him we had been down that road before, and for now waiting on the final was what we were comfortable with, before he hung up on me!

 

[mivey]

We have never done business with this company before. They keep telling me "we are a $150 million company. Of course, we'll pay."

"Umm, OK. But my concerns are my $12k, not your $150M". Lien 'em. Also, bonding on your part should make them comfortable about paying you for the job

 

[satcom]

We have never done business with this company before. They keep telling me "we are a $150 million company. Of course, we'll pay."

Plenty of $150 million companies go belly up every day, and with construction companies it may be every hour, in these times, never minde what they claim always run your own credit check before entering a contract.
If you go to buy a new truck, think of all the hoops you have to jump, and credit checks, and insurance checks, before they let you leave with the truck, they just left the project with your truck, and never made a payment.

 

[satcom]

Get an attorney involved and relax, let him try and help 12K is a lot of money, who knows the national company may be having some problems and the attorney may be able to get you some money.

 

[Gac66610]

The general told me we could lien the project, just so I would get that final. I told him we had been down that road before, and for now waiting on the final was what we were comfortable with, before he hung up on me!

Sounds like he knows how to deal with liens, IMHO get the job 100% done, call the inspection office tell them that you are the only one to call in for final no one else (not sure how yours work)

get a lawyer show them contract get options

just to add : getting hung up on ... makes you want to reach through that little phone line grab him by his scrawny little neck and squeeze til his little eyeballs pop out!

 

[satcom]

Sounds like he knows how to deal with liens, IMHO get the job 100% done, call the inspection office tell them that you are the only one to call in for final no one else (not sure how yours work)

get a lawyer show them contract get options

When he talks to the inspection office, he should notify them that he has not been paid a thing to date and they may be able to help him get paid.

 

[iceworm]

First: I want to be up-front that I have no clues as to the laws on getting payment.

As an owner's agent, I can tell you that when a third party, a supplier, sent me a ""Notice of Intent to Lien", it got my attention. I called the supplier and asked, "Whatsup?". The response was, "We are going to get paid for the material - one way or aother. Contractor doesn't pay up, you will. The notice is not a bad thing, just protection for us."

We liked the contractor and they were known to be fairly honest - at least as contractors go. So a few days after the payment that included a bill for the material, I called the vendor and asked it they had been paid - they said yes and I let it drop.

Had the vendor said no, I would have informed the contractor they were not getting any more payments until the vendor was paid. I don't know how well that would have worked, but that was my plan.

ice

 

[templdl]

Stand your ground!! You are not a charity. You have finantial obligations to meet and they do. Don't get caught sucking hind tit.
No money, no inpsection, no occupancy permit plain and simple. When you get the money make sure it clears the bank free and clear before proceeding.
I've gotten caught by a customer not paying according the terms and conditions of sale and it was like pulling teeth for 3 monthes to get paid. The next time they need a transformer built it was 1/3 due and payable at order entry, 1/3 upon order release and the balance due and payable before it was put of a truck period.
It's screw me once shame on you, screw me twice shame on me.

 

[magictolight.com]

Is it conceivable that these companies hold payment just to make more dollars. I figured if a company like this held $100 million in payments for 30 days, invested at 6% interest, they would make an extra $500,000 just off holding guys like me up. Half a million ain't chump change. I'd bet they play every angle for profit, even leaning on the little guy!

 

[ptonsparky]

One of my supliers had offered help if i needed it. Unfortunately i had paid all my bills for that job. Supplier was no longer any help other than the 18% interest they charged me for other projects. Took two years. Don't just threaten start the paper work now.