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bth0mas20

Senior Member
Location
Maryland
I did a job for a friend GC and the rough in has been completed for 3 months now and havent recieved a dollar yet. I put a hold on the final for this reason. Ive finished all the work and its ready for final. He said he will pay but never does when he says hes going to. The home owner claims she has paid him in full.

What route would you take?

Small claims, collection agency, lien......
The price is $1650
 

dan55

Member
Location
South Dakota
I started my business about a year and half ago. Only had this problem once so far. Found out that here lien on property cannot happen after 90 days from invoice. Small claims is maybe your next option but the longer you wait the less likely a judge will rule in your favor ( so I am told.) Which leaves a collection agency which around here they take a percentage (30%) and only if money is collected.
 

jrannis

Senior Member
bth0mas20 said:
I did a job for a friend GC and the rough in has been completed for 3 months now and havent recieved a dollar yet. I put a hold on the final for this reason. Ive finished all the work and its ready for final. He said he will pay but never does when he says hes going to. The home owner claims she has paid him in full.

What route would you take?

Small claims, collection agency, lien......
The price is $1650

Double check on the exact 90 days. You can file the paperwork late as a bluff if you are past the deadline
 

dan55

Member
Location
South Dakota
It could of been 120 days , but I was past both 90 and 120 so It didn't matter. I suppose each state is different though. That particular job I had given a bid on so they knew what the cost was upfront , except a few minor extras. So that was frustating. And the other thing was this person was making small payments then quit. After I started to apply more pressure they claimed that we may have left a side vent open on the house that caused some water damage. A. this was about 7 mos. after the job was over . and B. we never went thru the vent (for attic access) . A week later I sent this to collections. But I did learn a lesson , on not letting something like that go on to long.
 

hillbilly

Senior Member
bth0mas20 said:
I did a job for a friend GC and the rough in has been completed for 3 months now and havent recieved a dollar yet.

What route would you take?

Straight to his place of business....or to his truck the next time I saw it on a job site.

I've gotta get paid....I did the work, so cough it up.
Write me a check right now....and if it bounces, I'll have you arrested.
Post date it if you have to, but write it for the full balance.

Either that or get ready to eat some teeth.

I can't stand liars and cheats.

That's just me and my opinion....yours may vary.

steve
 

bth0mas20

Senior Member
Location
Maryland
my local small claims court says 120 days for a lien and if the homeowner has paid the gc than you cant place a lien on homeowner. Also you need to have a judgement from small claims before you can place a lien.
 

jrannis

Senior Member
bth0mas20 said:
my local small claims court says 120 days for a lien and if the homeowner has paid the gc than you cant place a lien on homeowner. Also you need to have a judgement from small claims before you can place a lien.
Around here the homeowner should have a release of lien for all of the subs and suppliers before they issue a final check
 

jmsbrush

Senior Member
Location
Central Florida
hillbilly said:
Straight to his place of business....or to his truck the next time I saw it on a job site.

I've gotta get paid....I did the work, so cough it up.
Write me a check right now....and if it bounces, I'll have you arrested.
Post date it if you have to, but write it for the full balance.

Either that or get ready to eat some teeth.

I can't stand liars and cheats.

That's just me and my opinion....yours may vary.

steve
Thats the way most feel about liars and cheats, but that isnt the way to handle business!! I personally know someone who made a death threat over $30,000 . The conversation was recorded, and guess what? He went to prison for awhile. The Judge made an example out of him. He never did get his $30,000. Moral of story: Be Careful what yo say and do.
 

nakulak

Senior Member
explain to the homeowner (nicely) that you haven't been paid, and that you may, as a last resort, have to cancel the permit, in which case the gc may have to hire another electrician and have the walls ripped open in order for the work to be reinspected by the new contractor. Tell them you don't want to do this, but you haven't been paid. send a letter to the contractor threatening to cancel the permit, and also to file a lien, and that he has 3 days to pay you in full. see what happens. in the meantime consult your lawyer.
 

Sparky555

Senior Member
It might be late for a Notice of Intent to Lien, but you could still write a certified letter to the homeowner saying you haven't been paid & you'll have to Lien the property. They'll usually call the GC with some threats & get you paid.

In the future,
Lien in a timely manner according to your state law.
Front-load your contract with about 85% due at rough.
State in your contract that work is stopped w/o timely payment, and
Never trim if you haven't been paid for rough.

Dave

PS Guess your GC friend wasn't a very good friend.
 

bjp_ne_elec

Senior Member
Location
Southern NH
You have to check local regs, but a mechanic lien is a possibility, but certainly you've got the hammer, as the permit is on your name. Try to stay on top, as the homeowner could have you in court, and again make sure you understand local regs.

In NH you have to give notice before the job regarding a mechanics lien. If you don't lay it out up front, you can't play that card.
 

wewirepgh

Member
Location
pgh steelers
:smile: here in burg I'm going thru the same thing sent a certified letter to HO getting a little response if you lien the HO its cheaper for the HO to pay twice and GC gets some heat:smile:
 

Dennis Alwon

Moderator
Staff member
Location
Chapel Hill, NC
Occupation
Retired Electrical Contractor
bth0mas20 said:
Ive finished all the work and its ready for final.
Why, in the world, did you do all the final work without getting paid for the rough in. I would not have gone near that job other than to hound the SOB and get my money.

By doing the work you set yourself up for more loss and no leverage. Lesson learned, I hope
 

km5qd

Member
Location
Lawton, OK.
I've been in business 17 years. I have learned to only do jobs that are bonded. You minimize your risk that way. Since doing only bonded jobs, I have never had any problems with collecting.

When doing smaller jobs, I was always chasing my money. When new in business you have to start somewhere. I would automatically file a lien after 45 days past due, no matter who they were.
 

sparky 134

Senior Member
Location
Joliet, IL
I would mail out two letters, certified. One to the GC and one to homeowner. I will give both parties 5 days to pay the outstanding balance. I would also inform both parties in this letter that you will be removing your name from the permit effectively placing the project on hold.

I would also call the building department and remove your name from the permit on the sixth day. Then I would install my mechanics lien the same day.

I now inform homeowners (when I've been hired by a GC) they should require lien waivers from all subs before dispensing any funds to the GC. I inform the homeowners that I will install a mechanics lien on the house if I'm not paid by the GC. This infuriates some GC's. These are the guys that are using money from this job to pay off the last job.
 

c2500

Senior Member
Location
South Carolina
You may also have recourse with your state licensing board. I know a sub that cannot place a lien on the property because the builder was paid in full (we have builders and gc's). The lien would attach and then be removed when proof of payment was shown. Then it all is back on the builder (who is flat broke). Since it is against state law here not to pay subs, they can yank his license, and perhaps activate his bond....if your laws are like South Carolina's.

c2500
 

sparkfree

Member
there is a little used law in md. that states if a g.c. has been paid for work and doesn't pay you you can get a judge to demand payment, ask a lawyer friend if you have one,or call me xxx-xxx-xxxx I'll call someone to get the name of the law mitch
 
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