Hello, I am the owner of a small GC company and I’m having issues with a certain customer. I was hoping to get advice here so I can weigh in my options.
So I recently finished installing 450 feet of baseboard, 150 feet of casing, a closet door and two 36" bifolds for a customer who is looking to sell their house for maximum profit.
Said customer had told me they had almost all the material needed to complete the project including the bifolds so I gave her a ballpark estimate of 2000 to 2500$ for the labor.
After looking through the material she had on hand, I had a total of 64’ of baseboards which I couldn’t match (used in closets) maybe 14 feet of casing that was actually sort of useable (also used in closets) a door that was too small and we had to re frame and her bifolds were both mismatched and way too small for the closet opening.
I communicated several times throughout that I needed to purchase material to complete the job. I charged a little less for labor but now the job came up to 3000$ with all the material. Customer is now throwing a fit claiming a 50% markup when in reality I’m charging less for the actual labor than I initially estimated. I’m even charging her my rate for the material with no mark up.
I got off the phone with them and they said they would pay us what they were “comfortable with” which I find is the most entitled thing I’ve ever heard.
What are my options here? I have the receipts. I have the proof in text. The job is complete and I even went through everything with her to make sure it was OK. I’ve been very patient throughout the whole ordeal but I refuse to let someone devalue my work and dictate what they pay me. At the same time, a bad review hurts a lot and I can’t actually get them to pay me.
I’m incredibly frustrated. I’m fanticising about just walking in there with my hammer and flat bar and removing all the trim but I know thats asking for trouble lol. Would threatening with a lien be a suitable option if I can’t get paid? Or would you go a different route.
Any advice is greatly appreciated.
OP, I’m a small structural engineering firm owner (sole prop) that often works as a sub to GC’s or framing contractors to help with remodels/reno’s/etc. In the three years I’ve been open, I’ve missed out on at least $25K in uncollected fee’s, at least $10K of which was directly a result of failing to adequately research and understand my state’s timetables and requirements for filing a mechanic’s lien.
My advice to you is simple: pay a local attorney a couple hundred bucks for a consult and get an understanding of the lien laws & requirements specific to your state and specifically, the counties you do most of your work in (they can vary county to county in my state). Establish a standard of care for your business for poor payers/non-payers - First Reminder, Second Reminder, Nastygram on attorney letterhead, notice of intent to lien to owner, lien filing, etc.
Some things you’ll want to ask about: time requirements for filing, notification requirements to the owner, lien position relative to other debt, standard forms for your county or attorney prepared template forms, etc.
It MAY be relatively easy to filing a lien in your state (mine has a simple two page form with 6 lines I need to fill out in to do it) but there can be strict deadlines and other requirements (legal description of the property and client’s name specifically were mentioned to me) that ,if not followed, invalidate any claim you’d make against the property. You may not get a second chance to correct any errors so make sure everything on the intent to lien is CORRECT the first time you file. Triple check it and then check it again.
God speed OP; I’m pulling for ya!