Contracting - Customer Backed Out.

 
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Old 10-09-2009, 12:20 AM   #1
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Contracting - Customer Backed Out.


I am not a contractor..Yet.. I just work as a sub.

I do gutters and don't need to pull building permits to do so.

Anyway, I bid a fairly good sized copper job not too long ago. Total job $6500.00

He signed the contract to do the work and gave me $2500.00 down.

I said ok, I will start when this batch of rain passes. He says great!

Call him a few days ago and say, I am coming out to get the job done, we have 2-3 days good weather here and its time to get er done.

He says, you know I have been thinking about it and I think I actually want to wait till spring. The weather is just not holding up. -I say, Well, they are forcasting 48 degrees and sunny for the next 3 days. He says, no I need to wait till spring. I tell him copper prices flucuate rapidly so this is going to be a problem. He says if it goes up it goes up we will re negoatioate. I say, ok sounds good.

Then he says, Well then, send me my $2500.00 and I will call you in the spring.

I say, well, this is why our company takes the security deposit to protect us when we invest in materials, planning etc......

He starts getting all mad and says I don't need the money if I am not doing the work intill spring. Yada yada.

I sent the money back. I really didn't want to deal with it. Either this guy is really anal about the weather or he is having buyers remorse and he just doesnt want to go through with the job. I sent the money back stating that I am returning the deposit under good will, and do not void our contract and plan on still honoring the agreement between us.

Alright - What did I do right/wrong.

Thanks,

Ryan

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Old 10-09-2009, 12:24 AM   #2
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Re: Contracting - Customer Backed Out.


You didn't have a "fancy" enough truck
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Old 10-09-2009, 08:25 AM   #3
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Re: Contracting - Customer Backed Out.


Ryan you did the right thing here. Sounds like cold feet on the owners part, that's happening a lot these days. Stock market goes up, people call. Market goes down, they lose focus and back out. You can't really pressure the guy without doing the job under duress, and who needs it? Maybe he actually will call you in the spring. And maybe copper will go down.
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Old 10-09-2009, 09:12 AM   #4
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Re: Contracting - Customer Backed Out.


How do the HO's new gutters look?
My guess is he got a better price. How does weather have any effect on installing gutters?

I would've held back $750-1000 of reminder money to cover your time. If materials had been ordered and/or days blocked out (and unable to fill) deposit would've stayed with me.
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Old 10-09-2009, 09:28 AM   #5
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Re: Contracting - Customer Backed Out.


That's why you require a deposit. To hold the dates, lock in the job. I would have held back a portion of the deposit. Call it a rescheduling fee and tell him that you would deduct it from the total when the job was complete.
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Old 10-09-2009, 09:47 AM   #6
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Re: Contracting - Customer Backed Out.


I've got an entry door replacement going on 5 months now. They are "Yes", "No", "Yes", "No"... on and on. I just ignore most of it, and tell them, "When you're ready..." Meanwhile, life goes on with other jobs.
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Old 10-09-2009, 09:57 AM   #7
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Re: Contracting - Customer Backed Out.


Returning his deposit----was the right move

Trying to hold him to the agreement in the spring-------wrong move

Move on, this guy is gone. G
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Old 10-09-2009, 10:04 AM   #8
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Re: Contracting - Customer Backed Out.


Quote:
Originally Posted by SeamlessGutters View Post
I sent the money back stating that I am returning the deposit under good will, and do not void our contract and plan on still honoring the agreement between us.
The way you stated the above, you are screwed if copper prices go up.
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Old 10-09-2009, 11:18 AM   #9
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Re: Contracting - Customer Backed Out.


You did wrong by not stating in your contract that deposits are not refundable. You'll never hear from the guy unless he is just a total kook. Most likely he found out his brother in law slept at a Holiday Inn the week before and now knows how to install gutters at 1/3 the price even though he has never installed any before.
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Old 10-09-2009, 11:26 AM   #10
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Re: Contracting - Customer Backed Out.


Was the deposit stated in the contract if so i would have kept the deposit and told him to call in the spring when he was ready stating that he signed a contract and that he hired you to do the job, always hold the contract he found someone cheaper to do it and not by chance he told someone your price and they beat it and he wanted out you were in the right and should have kept the deposit
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Old 10-09-2009, 11:43 AM   #11
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Re: Contracting - Customer Backed Out.


Write in to the contract a non-refundable feel of 2 - 5 % of the job. Don't work for free.
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Old 10-09-2009, 12:46 PM   #12
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Re: Contracting - Customer Backed Out.


Will you do a job in Elk River? Your post might make you feel better. 1 story ranch that is half built into hill side so no ladders on 3 sides? Let me know. Post reply and I'll send you my phone#.
Otherwise you did the right thing but you did loose the job.
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Old 10-09-2009, 02:29 PM   #13
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Re: Contracting - Customer Backed Out.


Quote:
Originally Posted by J F View Post
You didn't have a "fancy" enough truck

Or a generator
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Old 10-09-2009, 04:40 PM   #14
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Re: Contracting - Customer Backed Out.


You did right by returning the deposit, only because you did not have a clause in your contract stating that part of the project cost or deposit is non-refundable if the h/o cancels the contract after the 3 day recission period.

As far as not voiding the contract, you are just asking for it. If copper skyrockets, and this guy comes back in 6 months, he will want the job done at the first mentioned price. With the returned deposit means the contract is null and void.

However, all this may be pointless, as you will never hear from this guy again. Drive by the property and take a look at how good (or bad) his new gutters are.
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Old 10-09-2009, 08:50 PM   #15
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Re: Contracting - Customer Backed Out.


FremontREO - Always looking for more work! Elk River is close. Call anytime 320-237-7001 ryan
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Old 10-09-2009, 08:53 PM   #16
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Re: Contracting - Customer Backed Out.


Thanks everybody for you advice. Well, Either way, you just can't get them all, some people just sign when they are not ready, and I really don't want to do a job for somebody unless they really want me out there.

I am just glad I didn't buy my materials and had to pay a restocking fee! Luckily, It looks like I got two jobs to bid from this posts! And also, I got another copper referall today! Live and learn!

Thanks again,

-Ryan

http://www.seamlessguttersminnesota.com/

Last edited by SeamlessGutters; 10-09-2009 at 08:57 PM.
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Old 10-09-2009, 09:00 PM   #17
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Re: Contracting - Customer Backed Out.


Quote:
Originally Posted by SeamlessGutters View Post
Well, Either way, you just can't get them all, some people just sign when they are not ready,
I think you forget he already did sign.

Quote:
Originally Posted by SeamlessGutters View Post
He signed the contract to do the work and gave me $2500.00 down.
Ryan
I understand you don't want to work for somebody who doesn't want you to do the work. But keep in mind he did want you to do the work at one point, that's why he hired you and wrote you a check for 40% down.

I would make some changes to avoid this in the future. You may not realize it, but there are probably a lot more people like him that we all deal with all over the country who never get to the point he did with you, all because of something in the contract worded a certain way that just makes them doubt their success at trying this stuff.
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Old 10-09-2009, 10:00 PM   #18
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Re: Contracting - Customer Backed Out.


Hey thanks, Could you further explain? I am going to go to contractor school don't have time now. For the small seamless gutter job like $1200 bucks most people are pretty normal. But on these larger copper jobs it gets more complicated.
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Old 10-09-2009, 10:02 PM   #19
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Re: Contracting - Customer Backed Out.


Quote:
Originally Posted by SeamlessGutters View Post
I am going to go to contractor school don't have time now.
I still have no idea how to take this...sarcasm or serious?
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Old 10-09-2009, 10:40 PM   #20
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Re: Contracting - Customer Backed Out.


Quote:
Originally Posted by CookeCarpentry View Post
I still have no idea how to take this...sarcasm or serious?

Why, was carpentry school a joke?

The guy sounds honest and wants to learn.
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