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pete1

Hi,

This is my first post on the forum, and I was wondering if anyone could advise me of the best course of action to take against a customer who is unable to pay me.
I am a self employed electrician working mainly on domestic and commercial. Back in June 2011 I was contacted by a local guy who was building a new home by himself on a garden plot. I was asked to provide an estimate for the usual stuff, lighting and power, etc, and as the guy was a retired builder I agreed to give him my trade day rate, my estimate was accepted and I started work shortly after. Once work had begun the customer started making changes such as adding underfloor heating with stats in all rooms, and an air source heat pump as the main heat source, not to mention lots of extra sockets, lighting and tv points, I discussed these new requirements with the customer and offered to re-quote to which he said that he knew it would be a bit more and he was not too woried about the costs. Work carried on and after a week I had finished the 1st fix, I then asked about payment for the work so far which was stated in my terms to which I was told that, he needed to talk to me about that and would only be able to pay a little towards materials at this stage as he was waiting for a bridging loan. In the end I was paid £600 for materials but nothing for labour. Since July I have been back 2 or 3 times to do a few extras so that he could get plastering and painting underway, and to speed up the build, I recommended a mate of mine to do the plastering who was paid in advance. The customer has now asked me to come back again to move some sockets, cooker switch and a light switch in the kitchen as he has changed the plans again and also to add 4 sockets in the wet room which has now been changed to a utility room, I have again asked for payment for work so far and have been told that he would pay on completion. He still has no supply going to the house as yet and wants me back to do 2nd fix work, he is also now saying that the final costs will be way over the agreed original estimate and that we will have to sort this out with me too, and also that I didn't give him a cooling off period. I think he is building up to a refusal to pay and at this stage I don't want to be difficult and leave him with an unfinished house but I do need the money and am concerned that if I go back I am going to loose even more. All along I have tried to be reasonable and sympathetic to his situation at a cost to myself and my family but enough is enough. Sorry to rant on but perhaps if anyone has been in a similar situation or can give me any ideas as to what I should do next I would really appreciate it.

Thanks, Pete
 
walk away and put it down to experience. tell the guy that you are not prepared to carry on unless he pays you up to date and then cash in advance. the guy's a chancer and will run you ragged. cut your losses. iv'e been there and got the t shirt. believe me it hurts when you trust them after having had trouble, then they knock you again.
 
Thanks for the your reply, it does leave a bitter taste but I think your right. Onwards and upwards!
 
i would not even do that. once bitten etc. soon as i get a hint of non payment or late payment, wants alterations/additions, work stops till cash in hand or cheque cleared. if not forthcoming, then it's in the van and bye, bye mr. arsehole.
 
You should have agreed payment terms before the job started, at very least you should of walked away when you first asked for cash and never got it, would have been less of a kick for you

Good luck in getting it sorted, you should sell your debt or scare him by telling him you are going to sell it to a 3rd party company, sometimes makes people pay up as they dont want the hassle of bayliffs/courts etc....
 
Remember to put the word out in the wholesalers. He'll be screwed if everyone knows he's a bad payer
 
aint easy... good luck in whatever you decide, make that plead you need payed, and i think if you have agreement you chance your arm in saying you going to sell the debt to 3rd party compant might work, if not no work... aint easy
 
That's a good idea Trev and good to think of others too. No fair on anyone that.

Sorry to hear that Pete. Not that it will help you now but I always get the materials up front then labour 40% 1st, 40% 2nd and 20% on EIC.

You could do as suggested and get a contract for future if you decide to continue. Napit do a simple one with a new signed section for additions so you both know where you stand.
 
deal with it like they do in the wild west; stick em up punk, or still be normal and proceed through courts.... nobody does credit anymore without gurantees
 
How long between the quote being given, and work starting? Anything in writing agreeing to the quotation?
You should issue him with an Invoice right away for the work done to date, and then move to small claims after that. You'll only stand to lose what you're losing already plus the court fees, somewhere around £100-£200 by the time it gets that far.
 
He sounds very dodgy
I wouldn't just put it down to experience and walk away

Some of the advise given is very good,I would perhaps combine a few to pressure him without further commitment on your part


One other thing that you could do,its a new house, so building control will be involved
Have a word in their ear expressing your concerns that the job may not be completed by yourself, that you will not be registering the work, that you want confirmation that they accept only an eic.

Remind them (in case they are ignorant) that being the installer, the EIC ,obviously, this can only come from you, objections will be made by you if they were to disregard this duty

Stir the crap a wee bit before you walk
 
You should issue him with an Invoice right away for the work done to date, and then move to small claims after that.

This is good. Issue an invoice with a clearly specified (but reasonable) time to pay and actions following non payment.
If you have been operating since June with no payment then it is time to call time and get payment sorted before any more work is done, you have to live and this is the nature of business.
Remember that if you have not given him the written notification of the right to cancel then he can still cancel at any time until a notice is given, then he has seven days, but he must sign to say he will pay for reasonable costs incurred to the date of cancellation.
Should he pay, then for all future work get signed quotes at each stage / change with terms and conditions of payment, including the actions covering late payment.
For any additions requested write out a quick quote and get it signed (always a failure on my part).

I wish you the best of luck.
 
Written polite reminder, then 30 days later another (polite) reminder including the following statement:

"I attach my original invoice to this letter and wish to inform you, that if the invoice is not settled in full by xx[SUP]th[/SUP] yyyyyy 2010, I intend to refer this matter to the Small Claims Court without further reference to you."


Good luck
 
Written polite reminder, then 30 days later another (polite) reminder including the following statement:

"I attach my original invoice to this letter and wish to inform you, that if the invoice is not settled in full by xx[SUP]th[/SUP] yyyyyy 2010, I intend to refer this matter to the Small Claims Court without further reference to you."


Good luck

When things start to turn nasty, what can also help is if you fill out a small claims court form, and include it with one of your 'demand for payment' letters.

I had a problem with a property company a few years back who would not return my deposit, I waited about six weeks during which time I was given every excuse under the sun. The thing that really pi$$ed me off was the fact that they were a massive company with an HQ in Knightsbridge :euro:

I faxed them a final demand on a Thursday, stating that unless I had received my money by the following Tuesday AM, on Tuesday PM I would be off down to the local court to submit the attached claim form. I included a copy of the completed form to show them I was not merely talking BS but knew what I was doing. It obviously worked, as I got a cheque the very next day.

Details..

http://hmctsformfinder.direct.gov.uk/courtfinder/forms/ex306_e.pdf

The form required..

http://hmctsformfinder.direct.gov.uk/courtfinder/forms/n1_0102.pdf

Cheers
 
Sounds like to me that yo have been fair and reasonable. I'm sorry to hear you are having problems with this guy. I agree with Tel that you shouldn't do anymore work until he has paid-up. If you go back again he'll take you for a mug.

I'd issue a final letter explaining the background circumstances as you have summarised here and attach an invoice for the amount to date. Give him 21 days to pay and if he doesn't pay just use the money claim online service to commence proceedings. Dead easy to do. A CCJ against him will affect his credit rating and thus any attempts to get his bridging loan that he wants.

I'd also give the nod to building control and why not put an ad in the local paper to advertise he doesn't pay his contractors?
 

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