Customer won't pay bill

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Sonny Boy

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I have a customer who refuses to pay the bill that covered excavating a trench 40' long x 3 feet x 2 feet wide (Utility requirement), installed 3" Schedule 40 PVC from the utility transformer location to the 100 amp meter base on the customers building (Home Depot Red Barn), installed a 8/16 space 100 amp main breaker service panel, 3-20amp branch circuits and 1-30 amp branch circuit. Provided branch circuits for future heat and A/C.

I hired an excavating contractor to dig the trench and the bill was 300 bucks to dig and backfill the trench. I researched what it would cost if I and the customer rented a backhoe and did the trench ourselves. The cost would have exceeded the excavators charge.

The customer gave me a 500 dollar deposit prior to starting the work Any ideas how to resolve this situation?

And no, I didn't sign a contract for the work (kicking myself in the azz!). I offered to write up a contract but he said there was no need. He said he would fire me if he wasn't "happy" with my work.

Thanks,
Mike
 
Sonny Boy said:
...he said there was no need. He said he would fire me if he wasn't "happy" with my work.
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Sounds like he did just that.

A contract protects not only the customer but you as well.
 
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Contracts, IMO are not a full proof way to ensure payment. Hopefully you can reason with your customer to "make him happy"..btw what was the reason he refused to pay?
 
Let me guess, the customer thinks the manhours should be ridiculously low. Which probably equates to a real rip-off for you. I realy hate to see others getting taken advantage of, esp in the buisness we are in. You may be better off in taking what this creep is willing to give you for payment and learn from it for next time.
 
What were the total labor hours for a 100 Amp. service? Total Cost?

I normally bid a job like this with the customer knowing the cost up front. The cost may be high but if they are going to choke I would rather they do it before the work starts.

How much is the customer willing to pay? I may agree with Luketrician.
 
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Sonny Boy said:
He didn't like my total labor hours, which I reduced $150.00, and the 300 bucks for digging and backfilling the trench.
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Why would you reduce it????? Doing that just justifies what the customer already thought.............you overcharged him.

I try to get almost all my money before I call for an inspection. At least it gives you some leverage
 
Sounds to me your customer intended to do this from jump street!!!!! Otherwise why on earth would he not want a set in stone contract, without which you don`t have a leg to stand on.He/she knew this and planned no matter what to pluck you for whatever he/she could.Take what you can get and learn a valuable lesson from it.Sure you could take him/her to court but it would your word against his/hers.
 
Small claims court is relatively simple and inexpensive. No lawyers can be involved so cost is really low. I believe verbal contracts can be just as binding as written ones. Might be worth a shot. Once the guy receives the court papers, he may be more willing to settle up. Never know what skeletons he has in his closet.
 
IMO you encouraged him by agreeing to lower your price.

I think it is foolish to go into any such arrangement without both parties having a clear idea just what the charges are going to be, and what those charges include.

Any adders should be pointed out as they appear. One of the things customers have a real issue with is they get an estimate of $1000 for a T&M job, and get a bill for $3000, with little in the way of notice along the way that the extras are adding up.
 
muskiedog said:
REPO your work. If he didn't pay for the materials and man hours start disassembling.
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In some jurisdictions that is illegal. And regarding small claims court, if your company is incorporated you will probably need an attorney.
 
muskiedog said:
REPO your work. If he didn't pay for the materials and man hours start disassembling.
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Here depending on the situation that could be viewed as theft.

We usually get paid monthly on jobs. If they have been paying each month much of that installed equipment is already theirs.
 
I'm going to cut my losses....

I'm going to cut my losses....

and learn from this incident.

He agreed to pay 250 bucks for the backhoe work. I'll ask the excavator if he can reduce his bill by 50 bucks.

He wants me to sign a release of lien? I'm thinking if he pays in full, why do I need to sign the release.

I have to go to the customers place Friday to set GFCIs and check out the rest of the installation.

Thanks for the advice.

Mike
 
What ever you do, have an alibi. : )

I once knew a guy that hired a company that guaranteed to get his money. The next day they showed up handed him his money, less their cut of course, and later he read in the paper where his customer was found beaten in his driveway.
 
Sonny Boy said:
and learn from this incident.

He agreed to pay 250 bucks for the backhoe work. I'll ask the excavator if he can reduce his bill by 50 bucks.

He wants me to sign a release of lien? I'm thinking if he pays in full, why do I need to sign the release.

I have to go to the customers place Friday to set GFCIs and check out the rest of the installation.

Thanks for the advice.

Mike
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A waiver only gives a limited amount of protection to a customer unless it is accompanied by waivers from the people who supplied you the materials.

But on a small job, I agree there is not much benefit as long as he can prove he paid in full.
 
cowboyjwc said:
I once knew a guy that hired a company that guaranteed to get his money. The next day they showed up handed him his money, less their cut of course, and later he read in the paper where his customer was found beaten in his driveway.
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Is this company still in business? I like their sincerity and professionalism.
 
cowboyjwc said:
What ever you do, have an alibi. : )

I once knew a guy that hired a company that guaranteed to get his money. The next day they showed up handed him his money, less their cut of course, and later he read in the paper where his customer was found beaten in his driveway.
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I had a brief thought to go out there and cut all the cables at the outlets and service panel? But I've been told by people that I have too much Catholic in me.
 
Small claims court is relatively simple and inexpensive. No lawyers can be involved
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Not in my state, if your a corporation, professional, or LLC you need an attorney in small claims court, every state, has different laws.
 
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