The Pigs Are Cleared For Take Off!

smellslike$tome

In June '05 I completed an extremely difficult sewer installation for a new house (back when I was still doing new construction) consisting of approximately 160' of 4" sch 40 on what was as I recall about a 30% grade (very steep). I took some enormous chances because of the pressure the builder was putting on me to get it done. Specifically the last 15' of piping connecting to the lateral in a 10' plus hole with no shoring and recent t-storms. Everytime it would rain, even for just a minute, I would have to stop and pump out the hole from all the runoff from the hillside and the uncovered sewer ditch. Looking back on it I'm kinda embarrased that I put myself in that very dangerous situation. Never again!

After the install was complete (and I survived) I presented the builder with the invoice for the sewer. It no sooner hit his hand before he started huffing and puffing and telling me there was no way he was paying that amt inspite of the fact that the terms were agreed to long before ground ever broke on the house. This event was my personal education about the importance of signed contracts. Because I had done work for this man before, and although I had written a contract, I never forced him to sign it. So now my $5k plus invoice is being negotiated in the midst of a very heated pissing match down to $2500 "take it or leave it". Sensing that it was probably the only money I was ever going to see, I agreed. I was steamin' mad and left to go straight to the bank before anything else happened. It is not my practice to go running to the bank everytime I get a check in my hands but I could see this was a bad situation getting worse. Sure enough, before I could even get to the bank, he had stopped payment on the check. So he is a crook and I got stiffed. I of course tried to get back in touch with him and he of course would never answer the phone. At that point I went and filed a lien in the amount of $4000. I debated over the next 6 months (which I thought was the allowable time period to file suit on the lien) whether 4k was worth all the hassle, upset, lost time, and expense or if I should just let it go. In the end I decided it was not worth it and never pursued it further. At the end of the 6 mo. period I just wrote it off and accepted the fact that I would never be paid and vowed never to do any project over $1500 again without a signed contract.

Now flash forward to 1/22/07. I get a call from an attorney. I missed the call and started not to return it because I did'nt know what he was talking about. He had used my middle name however which is something sales people never do so I called him. Turns out that the so called "builder" had made messes all over town in which he had involved his eldest son (probably as investor). Well now all the chickens are coming home to roost. So the attorney wants to know what it will take to clear this up and offers me, can you believe it, $2500. Now I may still end up getting nothing because I rejected his offer pointing out that $4000 was MORE THAN FAIR for the work that was done and was still less than the originally agreed upon price. So I guess you could say that at this point I would rather have nothing than less than what I was willing to settle for at the time I filed the lien. So we will see what sort of lawyer tricks follow but it looks as if those flying pigs may be cleared for take off!

Mrmac204

holy crap- hope that you get yr $$ - geez, every trades guy that I run into has a story similiar - what, do we have targets on our backs??? man... I have a friend who has volunteered to have a "discussion" with someone that owes me.... its a great fantasy! I'd never go for it though-
night school class on contracts coming up soon- I'm signing up..

"contractors agreements" and "law for small business" one night classes, free..

Double-A

I hope it all works out well for you.

BTW, in Arkansas, its a crime to stop payment on a check for work performed.

__________________
"My clients’ wishes are the center of my attention." -- David Guido, a contractor in Woodstock, N.Y.
New York Times, July 20, 2006

Stone Mountain

Same thing happened to me about 20 years ago. Almost exactly the same circumstances. In my case, it was for a 20 storey condo building, for hoarding I put in. Very powerful, very intimidating builders, who never had any intention of paying me. I wound up writing it off.
When the condo came up for registration four years later, I got paid out: my original amount, interest, legals, everything.
Funny thing: 10 years later, by coincedence, my in-laws bought an apartment in the same building, and 6 months ago, the wife of our lawyer of the time (he died a few years ago), joined my wife's Maj Jong group.
Small world.

__________________
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www.fenceanddeck.ca

smellslike$tome

I received a check from a closing attorney for $49??.00 last week to settle on my 21 month old lien. That's $4000.00 for the lien, $14.00 for the cost of the lien, and 12% compounded interest for 21 months. All I can say is, if they try to stiff you, lien on 'em.

jensenconstruction

Glad to hear you got paid. I've had to file liens twice in the past and both times I ended up getting paid.

dirt diggler

um ... your invoice was for $5,000 ...not $4,000


why did you claim 4 instead of 5?

KentWhitten

OK, well, I hope none of you cross paths with the guys I've gotten screwed by. I've placed liens, waited them out and surprise! people are moving in! I'm like WTF???

Lien insurance. It's offered I think at closing. Pennies on the dollar. Builder gets his money, people get their home, everyone's happy!

I'm not sure my experience is valid nationwide. All this happened in WA state. Liens are only good for 7 months. And I'm not sure when the 7 months actually is. There's a very specific way to go about placing liens legally. Filing and sending an intent to lien. Can't be liened for work over 30 days or something rather. Make absolutely sure the lien is for the right amount or risk being sued by these people for excessive lien amount (yes, it's possible) file the proper lien (I believe it's called a mechanics lien). you take that sucker and go and file it at the registry yourself and make sure you send a copy to the builder, homeowner, bank loan officer....anyone connected that will say "WTF Mr. Builder, why hasn't this guy gotten paid?"

Then! When you do, you also send a letter in there for an intent to foreclose! Get your lawyer and say you want a formal letter intending to start foreclosure proceedings immediately. It's the foreclosure thing that really gets their attention. Do it and start immediately! Don't waste time.

Just make absolutely sure there is no gray area that this guy can say you didn't do according to your agreement etc. It can cost you heaps of money. If you are doing this under anger and you are gonna get even with the pr***, you better make sure of your foe's capabilities.

I have met at least one of the top five most wicked persons alive. I guarantee that. I have learned alot from the experience and it has cost me dearly. Like I've said before in another thread....if they're gonna screw you, they will. There are ways around you unfortunately.

Sometimes it's like you said, it's not worth it. Most times it's not. It's all a big game of how much can we trust each other.