Customer Wants Deposit Back...what To Do?

toddcla2002

So last year in October I have a client sign a contract for a 12k job and I get 3k deposit. In my contract it states that I don't start the job until I have all the colors (so there are no delays once I start other than weather etc.). I did a couple test patches (6) and he still hadn't made a decision. I told him that I will not start the work until colors are chosen. He calls and asks me to come out and do some caulking and wood cleaning and reviving. I tell him I won't START the job until he chooses colors. He then decides early December that since I didn't have the job done by Thanksgiving which would have been a possibility if we had colors in a timely manner that he would like for me to return his deposit check and cancel the contract. According to what I have in my contract and I believe the law is that after three days I don't have to give him a refund and it's liquidated damages. Now he's threatening that if I don't give him the 3k back that he had his lawyer look at my contract and it would "take him 20 seconds in court" to get an order issued for me to return his money. I am assuming that you will tell me to lawyer up and I probably will....this is just stressful.

I am a simple paint contractor and he was a big shot realtor making 350k a year and maybe a little hot headed but I think he realizes he's in over his head with his new huge house and now he doesn't have any homes to sell now and wants to paint it himself. This type of stuff just chaps my hide. If you have any advice please help....thanks.

~todd

ottik1

give back the deposit......even tho the guy is a dick....hes a realtor....if you did earn it, keep it, otherwise, if it was me, id give it back. also figure, the guy may be a dick, but hes a realtor, word of mouth goes a long way, if you did some work, but not 3k worth, take out a fair amount that you feel your entitled too.....just what id do

ottik1

also, figure that you did an estimate, color patches, and time figuring materials etc.... those are legal deductions. for some reason, he chose you to do the work, either your good, or cheap, hehe, (just kidding), ive found, the best way to exact revenge is to not lift a finger for them again, ever!!!!!!

bjg5240

I agree with OttiK1, take what is owed to you, then return the rest. Why waste money with an attorney & then end up giving him his 3k back & wind up with legal fees that come out of your own pocket.

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MarkNoV

Did you spend the deposit?

Mark

firemike

I Agree with ottik1 and bjh5240, make up an invoice using your standard hourly rate for the color samples you did, plus any other "recoverable" costs you incurred, and send him the balance with the invoice. Recoverable costs vary from state to state, if you have a lawyer friend or client it might be worth a call to see exactly what your entitled to.

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Any Season

Why did you take so much up front? I usually take a 10% deposit and its alot easier for me to say no way if someone were to ask for the deposit back, and its more likely for them to understand with a smaller amount.

22rifle

1. Make him put the request in writing.

2. Do what is right but do not prostitute your principles for the pie-in-the-sky possibility of him talking good or bad about you.

TigerFan

You're on his "talk bad about that guy" list, regardless.

I would line item detail every little cost, overhead and allowance I could and return the remainder.

I did this once with a customer - we mutually canceled a contract. He wanted $6k back. I line item detailed every single expense and overhead and owed him $2400. And I did not take ANY profit on the part of the job we did (about 10k worth of work).

To this day, they talk bad about my company. All I can do is counter with signed mutual termination and his agreement to my returning of every single penny on his job that was not a direct cost to his job.

It's actually won me a few customers - but most don't get to see my side of it - they just hear his and his wife's.

Bottom line is I could have returned the $6k and still gotten talked **** about.

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DavidC

I'm TigerFan on this one. Stressing the idea of a written/signed agreement terminating your contract. You could most likely include the cost of a meeting with your lawyer to decide what's best.

Don't worry so much about what he may say about you. Cultivate postitve comments from the customers that you prefer to deal with as an effective countermeasure.

Good Luck
Dave

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mickeyco

Tell him you'll send him a refund but it will take a while because you can't decide what color check to use.


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Mitch M

I know, RED. No, BLUE. No, GREEN. No, I don't know. hmmmmm this might take a while.

silvertree

That is the funniest answer!

This is what I would do---------------------------

Take money for your time and give back the rest, itemize it. His lawyer won't do squat if you have good paperwork.

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rbsremodeling

I once gave back a 100k deposit on a job hardest check I had to write

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22rifle

ouch man!

what happened?

rbsremodeling

Was suppose to do a condo conversation plans where almost approved then at the last minute the zoning board tanked the project. Talk about a Downer don't think I was sober the whole next month.

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BKFranks

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boman47k

I just came across this again. Care to tell the final outcome?

Carport King

Wow did I miss something or is this an old-old thread? You signed a contract in October? Let's see this is July? I guess you do not use Start or Finish dates on your contract?

I would be glad to give the guy back his interest free deposit. Hell you use the money over 6 months what's a client to think?

Not picking the color to me is lame. As a business owner why would you let this happen. Do the right thing and give the realtor his money back.

If I where you I would learn from this experence.

Schmidt & Co

Hey Carport...
I agree that giving the deposit back is the right thing to do. But I NEVER start a paint job without a complete color schedule. It will always kills the job profitibility.