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Old 11-15-2006, 04:28 PM   #1
tomcutt
Trade: renovation contractor
 
Join Date: Nov 2006
Location: Ontario, Canada GTA
Posts: 14
Delinquent client , what next ??

Hi everyone

I have just recently found your site , kudos to you all for the invaluable advice.
I am a one man show doing renovations in Ontario. This my fourth year in business

I have been very fortunate so far in regards to payments etc,
However I have a client who is full of excuses/lies regarding the arrival of final payment for a bath project . I have a very detailed contract (scope of work)not so detailed for payment schedule , I have collected 50% of $9500 so far.
Verbally it was agreed that the balance was to be paid upon completion, and they have indicated they are very pleased with the work .
In my contract I included the installation only of a client supplied vanity
however 5 weeks after the bathroom is complete we still have no vanity to install . Hence delaying completion and payment

I have requested another 40% but get nothing but broken promises and lies . The client is a referal from a longstanding ($$$)existing client of mine. They have never stated they won't pay or any issue


As it stands now I requested via letter further payment and or contact within 5 working days but that has passed with no contact

Any advice is greatly appreciated

I found this board researching contract disclaimers etc. while updating my current contract to avoid this delema in the future.

Thanks tomcutt

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Old 11-15-2006, 06:03 PM   #2
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Not sure about the lien laws in CA, so really don't have any real-world advice for ya. But, it couldn't hurt to contact a lawyer. Occasionally I have my lawyer fire off a nasty sounding letter, and that is all it takes to light a fire under the customer's a$$ and scare them into making a payment. These letter cost me around $25-$30. Good luck!
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Old 11-15-2006, 07:39 PM   #3
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Old 11-17-2006, 08:57 AM   #4
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Tomcutt

Are you in Ontario, Canada, or California?
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Old 11-21-2006, 03:19 PM   #5
tomcutt
Trade: renovation contractor
 
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Location: Ontario, Canada GTA
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resolution

Thanks for the advice , it is amazing how you get someones attention when you threaten to put a lean on their property.

$30 letter from lawyer
$16 overnite delivery

certified funds for the balance in my mailbox the next morning !


Mark, I am located in Ontario, Canada
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Old 11-21-2006, 05:02 PM   #6
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Man, don't you wish it was always that easy?
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Old 11-21-2006, 06:01 PM   #7
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Tom, congrats on getting such a quick response to your letter.

Did you bill them for the $46 it cost you to get their payment?
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Old 11-22-2006, 10:30 AM   #8
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Tom, I'm in Toronto. If you have a similar situation, let me know and I'll walk you through small claims. I've been on average once a year for 27 years, and I've never lost. Ever.
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Old 11-24-2006, 07:31 AM   #9
tomcutt
Trade: renovation contractor
 
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Location: Ontario, Canada GTA
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Yes in a round about way I did charge them , I inadvertently charged them 7% gst instead of the new rate of 6% , not sure how that happened (??) ,

thank you to Stone M for the offer hopefully I will never need it .

Tom
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Old 11-24-2006, 12:13 PM   #10
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Tom:

I have found the Canada Mortgage and Housing Corporation a very useful resource. Their publication #60944, Renovator's Business Guide, costs $24.95 and is worth every penny.

Also, Canadian Home Builders Association has an excellent website. The section Get It In Writing has some useful canadian legal content. (Google CHBA)

I am glad you stood your ground and got your money. Too often, contractors give up their rights for a sake of referrals.

Mark
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