Question about customer paying bill

[IrishRugger]

On monday I asked a customer of mine if I could get some money from him for the work performed on his bathroom remodel and some other wiring done in his home. He asked me to bring him a bill the next morning, He said that he would like to settle up in full.

This bathroom remodel was started in late october of 09 and due to the cotractor doing the remodel, and indeciseive customers it was not able to be finished until last week. during this time he had requested that I do some other wiring in different parts of his home.

Also during this period I updated his home's service from a 100Amp to a 200 Amp service. He had paid me in full for the service change out.

I presented him a bill on tuesday morning as he requested for the bathroom remodel and other performed. There was no contract price due to the nature of the remodel. He said he needed to move some money around to pay me and he would call me. This guy is not hurting for money.

It has been since tuesday morning and I have not heard from him. Is it appropriate to call him and ask for payment. I need to pay some bills. Next week is the end of the month.

 

[satcom]

There was no contract price due to the nature of the remodel. Yes, we all need to pay some bills, that is why getting a signed contract and permit filed on every job, puts you in a better position to secure your payment, once the inspection is completed, even your AHJ may be able to help you get paid, but without a signed contract and inspection, you will just have to wait and hope for the best. Did the permit for the service upgrade cover the other work?

 

[IrishRugger]

There was no contract price due to the nature of the remodel. Yes, we all need to pay some bills, that is why getting a signed contract and permit filed on every job, puts you in a better position to secure your payment, once the inspection is completed, even your AHJ may be able to help you get paid, but without a signed contract and inspection, you will just have to wait and hope for the best. Did the permit for the service upgrade cover the other work?

yes the permit covered the service up grade and the other work. My question is, is it appropriate to call him after a couple of days in regards to his bill. I appreciate your advice Satcom in regards to contracts, The service change out was on a contract, the bathroom remodel and other work was not because the scope of work for this particular customer is frequently subject to change.

 

[satcom]

yes the permit covered the service up grade and the other work. My question is, is it appropriate to call him after a couple of days in regards to his bill. I appreciate your advice Satcom in regards to contracts, The service change out was on a contract, the bathroom remodel and other work was not because the scope of work for this particular customer is frequently subject to change.

Sure, you should not have to chase him for a payment, but I learned many years ago to get the payment before leaving the job, but even them you get some customers, that have of habit of slow or no pay, they stall everyone they owe, and usually are living on the edge, they have nice homes and nice cars, and their homes are well furnished, but they are one day from loosing everything, it is not wrong for you to ask for payment.

 

[480sparky]

....... but they are one day from loosing everything, it is not wrong for you to ask for payment.

Then one day they either DO lose everything, including the ability to pay you, or else they KEEP everything, except the desire to pay you.

 

[IrishRugger]

Sure, you should not have to chase him for a payment, but I learned many years ago to get the payment before leaving the job, but even them you get some customers, that have of habit of slow or no pay, they stall everyone they owe, and usually are living on the edge, they have nice homes and nice cars, and their homes are well furnished, but they are one day from loosing everything, it is not wrong for you to ask for payment.

Thanks for the advice satcom. My big problem is building up the courage to ask for or insist on payment. Did you have that problem too and if so how would I best overcome this problem of mine. Customers of mine rarely balk at my prices unless they are family, friends, or they are just price balkers.

 

[macmikeman]

My big problem is building up the courage to ask for or insist on payment. Did you have that problem too and if so how would I best overcome this problem of mine. .

You either need to develop the courage or get yourself another occupation. I know this sounds harsh, but believe me, this won't be the only time you find yourself having to demand payment. Speaking of which, if he keeps avoiding you, an option to investigate is sending a registered mail, receipt required, demand for payment letter. If it gets returned unopened, do not open it yourself. Take it right away unopened to your attorney. This is not meant to provide legal advice, but there usually are laws to protect you from those who won't pay, and your attorney will know about those laws much better than your or me. I've been on that road a number of times, surprised by the types who attempt it. Good Luck.

 

[shepelec]

I love the excuse "Oh my husband/wife has the check book" after they were told it was a COD call on the phone and when I showed up.

There is nothing wrong with calling a customer requesting payment. For some reason people don't realize that this is our "pay check". They think all contractors are independantly wealthy and have tons of money to finance their project.:roll:

 

[satcom]

In my area many of the trades will not even respond to a job without first securing a credit card service call payment in advance, and then hitting the card for payment again when they are finished.

 

[cadpoint]

One thing that stuck out in your statement was that they wanted to settle up and then didn’t.

He asked me to bring him a bill the next morning; He said that he would like to settle up in full.

This is a chess move, and a bad bluff or move on the clients’ part.
As soon as they said they need to shift money (a sudo red flag), I would have asked for a post dated check.

I feel you didn't get a firm commitment of closing this account.

Your counter move would be to get a signed and dated in full to suit a small time frame.
Be it forty eight, or seventy two hours.
I don’t know if I’d of let the week end.

You can agree to call first to confirm that his finances are in order and not cause any more hardship, cash the check, check mate, game over.

 

[Paelectrician]

I think you are in trouble as far as getting payment. Even if you go to court how are you gonna prove thats the amount you two came to an agreement. If you got a permit for the work than why not add it to your contract also. I would be on the phone!!!!

 

[satcom]

I think you are in trouble as far as getting payment. Even if you go to court how are you gonna prove thats the amount you two came to an agreement. If you got a permit for the work than why not add it to your contract also. I would be on the phone!!!!

I agree, with signed contract, and permit he would be in a better position.

If he had a contract, and permit for the service upgrade, all he needed was an additional signed T&M or scope of work contract, and a permit update, and he would be in a great position to collect your payment.

 

[petersonra]

On monday I asked a customer of mine if I could get some money from him for the work performed on his bathroom remodel and some other wiring done in his home. He asked me to bring him a bill the next morning, He said that he would like to settle up in full.

This bathroom remodel was started in late october of 09 and due to the cotractor doing the remodel, and indeciseive customers it was not able to be finished until last week. during this time he had requested that I do some other wiring in different parts of his home.

Also during this period I updated his home's service from a 100Amp to a 200 Amp service. He had paid me in full for the service change out.

I presented him a bill on tuesday morning as he requested for the bathroom remodel and other performed. There was no contract price due to the nature of the remodel. He said he needed to move some money around to pay me and he would call me. This guy is not hurting for money.
It has been since tuesday morning and I have not heard from him. Is it appropriate to call him and ask for payment. I need to pay some bills. Next week is the end of the month.

Needing to move money around to pay you, and not hurting for money do not seem like they should be in the same sentence to me.

Its seems to me like things done on an ad hoc basis like this should be paid for on completion.

 

[IrishRugger]

Well I have had made two phone calls to the customer on his cell phone and left messages. The lack of courage problem I had earlier has evaporated. I'm going to make one more call in about an hour. The customer may not realize his wife gave me their unlisted home phone # (yes I know another red flag) Time to build some character and "esto vir"

 

[satcom]

Well I have had made two phone calls to the customer on his cell phone and left messages. The lack of courage problem I had earlier has evaporated. I'm going to make one more call in about an hour. The customer may not realize his wife gave me their unlisted home phone # (yes I know another red flag) Time to build some character and "esto vir"

Don't beat up on yourself, just about all of us have been there, usually when we first started out in business, we din't all have mentors, to guide us thru the business part of electrical contracting, but over the years we all learn from our bad decisions, and chart a new course for the way we do business. My rock in the business end, came from my wife and her support in teaching me the proper methods for operating a contracting business, I never thanked her for all her coaching, and now when I visit the grave site, I thank her, and try to pass on some of the practices I learned from her. Her help is what allowed me to bring in a decent living, and provide for the family. Remember your family depends on your income, so make those collections, and kiss the wife every day.

 

[btharmy]

Just let him know you will be on that side of town and will be by at x:xx to pick up his payment. "Leave the $ in the planter on the porch of you will be out at that time". It's really none of his business why you need "your" money but you could mention you need to pay your own bills that are due.

 

[wawireguy]

Sounds like you don't have a good system in place for billing. You should come up with a method and use it. I worked for a company and they billed by mail. Just like getting your credit card bill. It was spelled out how long they had to pay on the bill. They pretty much set up a system where the customer knew it was expected that they had to pay the bill. If someone didn't pay after 120 days or whatever, called the lawyer and kept on trucking. That system won't work for everyone but you need a system where the customer gets a written/documented bill and it's not just word of mouth billing. I'd also consider/research some kind of agreement to start work that the customer signs. I'm unsure on how that exactly should be worded but something to show that the customer hired you.

 

[readydave8]

On monday I asked a customer of mine if I could get some money from him for the work performed on his bathroom remodel and some other wiring done in his home. He asked me to bring him a bill the next morning, He said that he would like to settle up in full.

This bathroom remodel was started in late october of 09 and due to the cotractor doing the remodel, and indeciseive customers it was not able to be finished until last week. during this time he had requested that I do some other wiring in different parts of his home.

Also during this period I updated his home's service from a 100Amp to a 200 Amp service. He had paid me in full for the service change out.

I presented him a bill on tuesday morning as he requested for the bathroom remodel and other performed. There was no contract price due to the nature of the remodel. He said he needed to move some money around to pay me and he would call me. This guy is not hurting for money.

It has been since tuesday morning and I have not heard from him. Is it appropriate to call him and ask for payment. I need to pay some bills. Next week is the end of the month.

You can be polite but persistent, call him every day.

If I have to wait for another sub or GC before I can continue a job, I turn in a progress draw. Bill early and often, it improves collection rate.

I hate when I hire someone and they let dollars and time pile up before they bill me, I'm not always prepared when the day finally comes.

 

[jaylectricity]

It's not a matter of getting up the courage to ask for your money. It's already your money. It's a matter of understanding that. Like it was mentioned..."I'll be in your area at x:xx time, leave the check where I can get it," etc...

Also, satcom: How can the AHJ help you get paid? And do you mean the wire inspector, or the actual authority having jurisdiction?

 

[Buck Parrish]

Like it was mentioned..."I'll be in your area at x:xx time, leave the check where I can get it," etc...

I agree with this, stop by his house. With your hand out.
Have a $ sign drawn with pen on your palm also write "Pay Me"

I saw that on TV :grin: