Contract Problem--Breech?

GunnCon

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PipeGuy

If they won't make some kind of payment immediately, get a good lawyer involved NOW. The management company is apparently more of a credit risk than you anticipated. Take action now to protect yourself.

Bob Kovacs

What does your contract state for payment terms? Is it a straight "payment within 10 days of invoice" type of arrangement, or is there a "pay when paid" or "pay if paid" clause?

If it's either of the latter, you're stuck with what the contract says- you'll get paid when/if the management company gets paid. If not, and you're contractually entitled to payment within a fixed time frane, demand payment or stop work- the management company's cashflow problems aren't yours to bear unless your contract says they are. In most commercial projects, the "pay when/if paid" clauses string out everyone down the line, which benefits everyone except the first guy downstream who didn't incorporate the same clause into his contracts with his subs/vendors.

Bob

Glasshousebltr

I've seen so much of that he said then she said, I will, second Monday, in the mail, when I get, have to talk too crap I can't hardly stand it anymore. However I guess it's part of the title.

Anyhow my observations concerning this are that most the big management corps work a lot like insurance companies, they have full time people trying to think their way out of paying. The fellas are right, strike now.

Bob

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Bob

red_cedar

presuming you will be within your right........no pay---no work

GunnCon

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red_cedar

Get an attorney.
If it does not state when the downpayment is due, then I would think that it is not clear to you or them. So go ahead and make it clear, verbaly, then add it to the contract. Sounds like you could stop work anytime, safely. If I were to think in laymans terms, down payments usually means 'before'

DecksEtc

Personnally, I don't start ANY work until the deposit/downpayment has ben received - no exceptions!

Bob Kovacs

So am I to assume that you haven't done any work yet on the project? If not, move on- go get another project, blow them off, and refuse to work for them ever again. If they do call to tell you the DP is ready to pick up, tell them your price just doubled. If they respond with "we have a signed contract", remind them that they have nothing, because no "consideration" (money) has changed hands yet. If they threaten to sue, mention that you'll be counter-suing for lost profits, lost opportunity, etc., while you waited around for them to start.

Bob

PipeGuy

IMO, you're ill-advised to take any of the above action without first consulting with a good attorney.

If your contract fails to define a 'start date' and does not establish a time frame for downpayment you may be obliged to perform regardless of the delay. Talk to an attorney now and determine what your options are.

GunnCon

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red_cedar

I thought you had already started.
I would not have waited almost 2 months.

Jeremy England

My situation is not as large however I am seeking some advice on what to do.

I was approached by a couple that wanted me to give them a bid on their house plans, after I completed it about two weeks went by and then they call me and tell me they would like me to contract their house. Anyway, I give them a contract for the estimated amount and everything is going ok. Then the wife gets with me and tells me she would like a bunch of changes, I tell her no problem, we will just write change orders for each.

She thinks this is fine but the bank says no change orders because these people are getting 100% financing. So I redraw the contract without change orders but the new changes reflected in the contract amount.

A week goes by and then the couple calls and says the bank will not finance them with me as their builder. So they decided to build with someone else.

Meanwhile I have already paid 800 dollars for their water meter to be set, and ordered a stake out that I got canceled just in time. I also had a porta john dropped on the lot. I have signed agreements with sub contractors for the plumbing and framing of this house.

I know better now than to do any work, ANY, until people close on their loan,

Any suggestions?

Mike Finley

Learn to spend other people's money and not your own. 1) All those expenses should have been covered by the deposit you took. 2) You should have a termination clause in your contract that their deposit is forfeit & they could be liable for even more expenses should they terminate the contract.