Client Willing To Pay For Canceled Jobs

Gitrdone

Twice last month we had clients we were working with cancel due to complications that were unrelated to the work we were to perform. Both offered to pay us for our time, but we had not signed a contract for work to be performed yet. We try to make sure the contract price is right on and not full of allowances so our pre contract time can tend to drag out. There is no way we could bill for our actual time spent doing legwork for their project. Of course both clients say they will pick things up with us again when their situation is better but only time will tell. I told them not to worry about paying us, but I can tend to be a too much on the clients side and not enough on my own. I just wanted to know what others would do in this situation.

In hindsight we should have gotten a deposit and a pre-construction agreement when they agreed on the initial estimate with the allowances in it.

Thanks for any replies.

deckndave

Ouch. Like my mother always says. "GET IT IN WRITING". You performed all the legwork then they decide not to go with you. I wonder if they got a lower bid from someone else. Keep tabs on this "client" and see if they really are putting off the project, or just putting you off.

Island1

I wouldn't charge for pre-construction selections, planning and consultations, even though they offer to pay for your time. It sounds to me like you've invested quite a bit of time with these people, which means they've invested a lot into you as well.

If they cancelled after that, it usually means they have some big personal issues they are dealing with. I wouldn't be an additional burden on them. Not to mention they are probably pretty dissapointed about putting their project on hold.

But I would try to parlay the relationship if possible. You shouldn't let a good deed go unnoticed. Express your concern and understanding. The may feel obliged to help you. I've had cancelations recently too, but they we're happy to pass business cards along and recomend me.

One cancelation from last June just called and started things back up!

Gitrdone

Thanks for your replies,

DeckNDave, No, they did not get a lower bid. Do you have an agreement for clients who have not finalized what they want yet but have accepted your rough estimate? In my case the scope of work in the estimate was not clearly defined enough for me to feel comfortable presenting a construction contract.

Island1, you are right the client is unhappy about pulling the plug also. Congat's on getting to reopen your old client file.

wellbuilthome

Well Ive had 250k walk on me since June 08 . One guy canceled the job as my track ho and loader was pulling off the trailer .
Ive been collecting a small deposit 4000 dollars +- on a 80k job . My jobs are sold 6 months out .
Pretty much the money is spent in plans and permits and it is impossible for me to give the deposit back .
I think if the job is canceled with no notice days before you are to start they owe you profit & over head .
If you don't have a contract it would be hard to charge them .
Ive been giving the unspent deposit back or keeping the money for future work It depends on the circumstance .
I work in a small area and i don't want to have any one saying negative thing about me . John

concretemasonry

Inform the permitting organization (city, county) in writing that you are not involved in the project and send a copy of the letter to the owner. At least, that way you will be off the hook and possibly make the owner think twice before he pulls the same thing again.

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Dick

Engineer, designer and consultant recently active domestically and internationally on construction and design in about 35 countries.

Constructive1

I've had a huge amount of work cancel or postpone in the last 18 months due to financing issues, the city deciding they wanted a property to make a park, and a guy getting depressed and starting new med's. Most of the cancellations/postponements occurred a week or two before the actual start date.

So...new policy/contract language is that there is a nonrefundable scheduling deposit in addition to the initial draw. The amount is determined based on the size of the job, and the impact the customer's inability to perform would have on us.

The good news is that some of the above projects will happen at some point.

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