Late Payment Due To Death In Family? - Page 2 - General Discussion - Contractor Talk

Late Payment Due To Death In Family?

 
Thread Tools Search this Thread Display Modes
Old 04-11-2014, 09:31 AM   #21
Contractor of the Month
 
Inner10's Avatar
 
Trade: Control Systems
Join Date: Mar 2009
Location: Ottawa, ON
Posts: 25,768
Rewards Points: 4,258

Re: Late Payment Due To Death In Family?


Quote:
Its just hard gettin to the point of having a cash reserve.
Took me about 3 years before I developed a cushion, and that can get depleted when floating jobs.

I'd show up at the wake...with my credit card reader.
Inner10 is offline  
The Following User Says Thank You to Inner10 For This Useful Post:
TNTRenovate (04-11-2014)

Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ContractorTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

   

Advertisement

 

Old 04-11-2014, 10:29 AM   #22
Pro
 
Stoneyard's Avatar
 
Trade: Journeyman Carpenter
Join Date: Mar 2014
Location: Mn.
Posts: 106
Rewards Points: 249

Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by Californiadecks View Post
Tell them there will be another death in the family if you don't get your money.
I like your style... Some folks have no idea the hoops we jump through to get a job done on time and on budget.
Stoneyard is offline  
Old 04-11-2014, 10:49 AM   #23
Registered User
 
Mikesloan's Avatar
 
Trade: Chippy
Join Date: Jan 2014
Posts: 19
Rewards Points: 14

Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by 6stringmason View Post
Yes, another week is a problem. I've had a slow late winter due to record days of low temps, and record lows all in a row. It was a horrible winter for masonry.

My contract, that he signed, said payment due upon completion. That was a month ago. The HO wanted me to touch some things up, then I'd get the remainder of the money 'right away', GC's words.

I touched things up, HO was happy, was supposed to get my money, now its another week. Im just wondering what the excuse will be next week. I have bills to pay. Does business just shut down due to a death in the family? As much as I feel for him, I still have a life to live, and food to put on the table.

Am I being difficult here?
The real reason you are not getting paid is because they don't want to release the money until they earn another months interest from the money that really belongs to you.
Mikesloan is offline  
Sponsored Links
Advertisement
 
Old 04-11-2014, 11:37 AM   #24
Pro
 
SectorSecurity's Avatar
 
Trade: Low Voltage Wiring
Join Date: Nov 2013
Location: Ontario
Posts: 4,048
Rewards Points: 2,828

Re: Late Payment Due To Death In Family?


Do you not have a clause somewhere in your contract that says overdue payments will be collect intrest at x% per month? That usually gets people to move a little faster.
SectorSecurity is offline  
Old 04-11-2014, 12:27 PM   #25
Hair Splitter
 
TNTRenovate's Avatar
 
Trade: General
Join Date: Aug 2010
Location: Naperville, IL
Posts: 18,310
Rewards Points: 1,244

Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by Inner10 View Post

Took me about 3 years before I developed a cushion, and that can get depleted when floating jobs.

I'd show up at the wake...with my credit card reader.
Its been five years and I am almost out of debt. Next is the cushion. I had a rough patch last year. I was paid up and lost a client that was feeding my bathroom after bathroom. Took all of last year to get back on my feet and running string.

This year had been unbelievable. I should have my reserve by August.
__________________
Tried & True on Facebook
Tried & True Website
Quote:
Originally Posted by CarpenterSFO View Post
You ask for your money frequently, and you collect it quickly, else you stop working immediately.
TNTRenovate is offline  
Old 04-11-2014, 01:12 PM   #26
LRG WoodCrafting

 
Leo G's Avatar
 
Trade: Maker of Fine Sawdust
Join Date: May 2005
Location: Windsor Locks, Connecticut
Posts: 40,724
Rewards Points: 13,573

Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by pinwheel View Post
This type thing is why we keep emergency reserve money in savings. Sometimes cash flow becomes an issue, regardless of whether it's a death in the family, or I for some unforeseen reason can't get the jobs to 100% completion. Nothing ruins excellent credit faster than being slow pay to my creditors. I hate taking that money out of savings, but I hate more not being able to pick up the phone & say send me 1000 ft of flooring & know it's on it's way.
Hard to get a cash reserve with a slow winter and non paying clients. I got one right now owes me nearly 2 grand since last July. Don't really think I'll see that money. Hate working for GCs. Never have this problem with residential home owners.
__________________
Sawdust Follows Me Everywhere
I can explain it to you, but I can't understand it for you.
Sanding is the bane of my existence
WWG1WGA

Quote:
Originally Posted by HusqyPro View Post
Carpenter by day.
Mad scientist by night.
http://lrgwood.com
Custom Cabinets in Hartford County Connecticut
Leo G is offline  
The Following 2 Users Say Thank You to Leo G For This Useful Post:
B.D.R. (04-11-2014), dom-mas (04-12-2014)
Old 04-11-2014, 01:19 PM   #27
Talking Head
 
EthanB's Avatar
 
Trade: Poking Things With Sticks
Join Date: Sep 2011
Location: Rhode Island
Posts: 5,325
Rewards Points: 308

Re: Late Payment Due To Death In Family?


If it was an immediate family member then I would probably wait the week, unless it meant me not paying my crew. I don't stiff employees, ever. Getting paid regularly is one of the only real perks of being an employee.

If there is a GC involved then why isn't he the one paying you? I only do prime contracts but all my contracts include that all but 5% of the contract be paid at substantial completion with 5% held back for punch list items, if necessary. It keeps me from having to wait a month for one cabinet coming in or some other silly thing.

I'd email and say, "Very sorry to hear of your loss. We had agreed on payment this week and I have planned accordingly. There are many expenses involved in running a business and I also have bills to pay. Please forward the payment. Thank you for understanding."
__________________
Quote:
Originally Posted by Jaws View Post
Planer.....
EthanB is offline  
The Following 2 Users Say Thank You to EthanB For This Useful Post:
littlefred811 (04-12-2014), pinwheel (04-11-2014)
Old 04-11-2014, 01:40 PM   #28
Focusing on solutions.
 
pinwheel's Avatar
 
Trade: hardwood floor contractor & so much more
Join Date: Dec 2009
Location: Missouri
Posts: 5,034
Rewards Points: 822

Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by Leo G View Post
Hard to get a cash reserve with a slow winter and non paying clients. I got one right now owes me nearly 2 grand since last July. Don't really think I'll see that money. Hate working for GCs. Never have this problem with residential home owners.

That's why those monies need to be put together when cash flow is good & it needs to be earmarked for emergencies only. When it's used for emergencies, it needs to be replaced when cash flow gets good again. If we're running a profitable business, it's not that hard to put away 5-10% of the profits from every job. It just takes discipline & telling ourselves NO once in a while.

We got into a low cashflow situation for a few weeks this winter & had to borrow $2500 from our savings to pay the bills. It wasn't because we didn't have work, it was because we had 3 open jobs going at the same time & didn't collect final draw till they were complete. As soon as I write the check to the IRS, I'll start putting that $2500 back in savings so it's there the next time we need it.

As for working fot GC's, I guess I'm fortunate to have the GC's that call us. They make up about 25% of our annual work & none of them have ever stiffed me to date. Occasionally they're slow pay, but they always pay, most within 30 days of final bill.
pinwheel is online now  
Old 04-11-2014, 01:43 PM   #29
Have Trowel, Do travel
 
brunothedog's Avatar
 
Trade: Artisan
Join Date: Sep 2013
Location: international
Posts: 909
Rewards Points: 1,188

Re: Late Payment Due To Death In Family?


since when does personal affairs mix in to business affairs?
Yeah, I forgot.... when you owe people money
__________________
I used to love the days when you could look at an unattended bag on a train or bus and think to yourself...'Iím going to take that.'
brunothedog is offline  
Old 04-11-2014, 01:48 PM   #30
Hair Splitter
 
TNTRenovate's Avatar
 
Trade: General
Join Date: Aug 2010
Location: Naperville, IL
Posts: 18,310
Rewards Points: 1,244

Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by pinwheel View Post

That's why those monies need to be put together when cash flow is good & it needs to be earmarked for emergencies only. When it's used for emergencies, it needs to be replaced when cash flow gets good again. If we're running a profitable business, it's not that hard to put away 5-10% of the profits from every job. It just takes discipline & telling ourselves NO once in a while.

We got into a low cashflow situation for a few weeks this winter & had to borrow $2500 from our savings to pay the bills. It wasn't because we didn't have work, it was because we had 3 open jobs going at the same time & didn't collect final draw till they were complete. As soon as I write the check to the IRS, I'll start putting that $2500 back in savings so it's there the next time we need it.

As for working fot GC's, I guess I'm fortunate to have the GC's that call us. They make up about 25% of our annual work & none of them have ever stiffed me to date. Occasionally they're slow pay, but they always pay, most within 30 days of final bill.
I don't think anyone would argue with that. But your need to be debt free before saving. Makes no sense to pay interest on a cc or account and have savings.
__________________
Tried & True on Facebook
Tried & True Website
Quote:
Originally Posted by CarpenterSFO View Post
You ask for your money frequently, and you collect it quickly, else you stop working immediately.
TNTRenovate is offline  
Old 04-11-2014, 01:52 PM   #31
Contractor of the Month
 
Inner10's Avatar
 
Trade: Control Systems
Join Date: Mar 2009
Location: Ottawa, ON
Posts: 25,768
Rewards Points: 4,258

Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by TNTSERVICES View Post
I don't think anyone would argue with that. But your need to be debt free before saving. Makes no sense to pay interest on a cc or account and have savings.
Logically one would think that, but there are situations where that is not the case.

If your cash on hand is more monetarily productive than the interest rate you are paying it isn't worth paying off.

If you are trying to teach someone who has chronic money management problems you have to train them to save a very small amount of money at all times, even if they still own money, just so they get in the practice of saving something.
Inner10 is offline  
Old 04-11-2014, 01:55 PM   #32
Hair Splitter
 
TNTRenovate's Avatar
 
Trade: General
Join Date: Aug 2010
Location: Naperville, IL
Posts: 18,310
Rewards Points: 1,244

Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by Inner10 View Post

Logically one would think that, but there are situations where that is not the case.

If your cash on hand is more monetarily productive than the interest rate you are paying it isn't worth paying off.

If you are trying to teach someone who has chronic money management problems you have to train them to save a very small amount of money at all times, even if they still own money, just so they get in the practice of saving something.
Obviuosly, but money sitting in a savings account isn't going to out produce interest on a card.

Cash on hand and cash reserve are not the same. We are strictly speaking of cash reserve.
__________________
Tried & True on Facebook
Tried & True Website
Quote:
Originally Posted by CarpenterSFO View Post
You ask for your money frequently, and you collect it quickly, else you stop working immediately.
TNTRenovate is offline  
Old 04-11-2014, 01:56 PM   #33
Hair Splitter
 
TNTRenovate's Avatar
 
Trade: General
Join Date: Aug 2010
Location: Naperville, IL
Posts: 18,310
Rewards Points: 1,244

Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by brunothedog View Post
since when does personal affairs mix in to business affairs?
Yeah, I forgot.... when you owe people money
Can't separate my business from my person. So it's always personal.
__________________
Tried & True on Facebook
Tried & True Website
Quote:
Originally Posted by CarpenterSFO View Post
You ask for your money frequently, and you collect it quickly, else you stop working immediately.
TNTRenovate is offline  
Old 04-11-2014, 02:10 PM   #34
Focusing on solutions.
 
pinwheel's Avatar
 
Trade: hardwood floor contractor & so much more
Join Date: Dec 2009
Location: Missouri
Posts: 5,034
Rewards Points: 822

Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by TNTSERVICES View Post
I don't think anyone would argue with that. But your need to be debt free before saving. Makes no sense to pay interest on a cc or account and have savings.
I disagree. For a business, those emergency reserves need to be in place before worrying about getting outta debt. Even if it means you gotta borrow those reserves. They're not their to make you money, they're there to keep your head above water when cash flow doesn't keep up with the incoming bills.

Before we built our new shop last fall, we had a years worth of bills in reserve. To keep from borrowing money to build the shop, we used 2/3rds of those reserves. Under no circumstances, we we willing to drop below 4 months of bills in savings.
pinwheel is online now  
The Following User Says Thank You to pinwheel For This Useful Post:
SmallTownGuy (04-11-2014)
Old 04-11-2014, 02:18 PM   #35
Contractor of the Month
 
Inner10's Avatar
 
Trade: Control Systems
Join Date: Mar 2009
Location: Ottawa, ON
Posts: 25,768
Rewards Points: 4,258

Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by pinwheel View Post
I disagree. For a business, those emergency reserves need to be in place before worrying about getting outta debt. Even if it means you gotta borrow those reserves. They're not their to make you money, they're there to keep your head above water when cash flow doesn't keep up with the incoming bills.

Before we built our new shop last fall, we had a years worth of bills in reserve. To keep from borrowing money to build the shop, we used 2/3rds of those reserves. Under no circumstances, we we willing to drop below 4 months of bills in savings.
I agree, less risk using opm as well.
Inner10 is offline  
Old 04-11-2014, 03:00 PM   #36
Pro
 
BamBamm5144's Avatar
 
Trade: Everything Exterior, Mostly Roofing.
Join Date: Jul 2008
Location: Wisconsin
Posts: 7,181
Rewards Points: 2,786

Re: Late Payment Due To Death In Family?


Just tell them you need the money as the material supplier is ready to place a lien on the property. As soon as you get paid, you pay the supplier and the lien goes away and they get a lien release.
BamBamm5144 is offline  
Old 04-11-2014, 04:19 PM   #37
Hair Splitter
 
TNTRenovate's Avatar
 
Trade: General
Join Date: Aug 2010
Location: Naperville, IL
Posts: 18,310
Rewards Points: 1,244

Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by pinwheel View Post

I disagree. For a business, those emergency reserves need to be in place before worrying about getting outta debt. Even if it means you gotta borrow those reserves. They're not their to make you money, they're there to keep your head above water when cash flow doesn't keep up with the incoming bills.

Before we built our new shop last fall, we had a years worth of bills in reserve. To keep from borrowing money to build the shop, we used 2/3rds of those reserves. Under no circumstances, we we willing to drop below 4 months of bills in savings.
In effect you are borrowing money for a cash reserve. It may make you feel warm and fuzzy but carrying more debt than you can cover is just bad business. Paying that debt of is smart.

If you have a year in cash reserve there is no reason not to pay off your debts. Just doesn't makes sense to accrue more interest when you have the money to pay it off.

I am not taking about capital loans and credit accounts, not investment loans or property.
__________________
Tried & True on Facebook
Tried & True Website
Quote:
Originally Posted by CarpenterSFO View Post
You ask for your money frequently, and you collect it quickly, else you stop working immediately.
TNTRenovate is offline  
Old 04-11-2014, 04:59 PM   #38
Pro
 
TimNJ's Avatar
 
Trade: Remodeler
Join Date: Sep 2005
Posts: 6,142
Rewards Points: 4,830

Re: Late Payment Due To Death In Family?


Quote:
Originally Posted by EthanB View Post
If it was an immediate family member then I would probably wait the week, unless it meant me not paying my crew. I don't stiff employees, ever. Getting paid regularly is one of the only real perks of being an employee.

If there is a GC involved then why isn't he the one paying you? I only do prime contracts but all my contracts include that all but 5% of the contract be paid at substantial completion with 5% held back for punch list items, if necessary. It keeps me from having to wait a month for one cabinet coming in or some other silly thing.

I'd email and say, "Very sorry to hear of your loss. We had agreed on payment this week and I have planned accordingly. There are many expenses involved in running a business and I also have bills to pay. Please forward the payment. Thank you for understanding."


I agree immediate family member deserves a week. No different than if someone in your immediate family died and the HO demanded you to trim their window the next day
But, who did you do the work for the GC or the homeowner?
TimNJ is offline  
The Following User Says Thank You to TimNJ For This Useful Post:
dom-mas (04-11-2014)
Old 04-11-2014, 05:38 PM   #39
Pro
 
dom-mas's Avatar
 
Trade: masonry
Join Date: Nov 2011
Location: Ontario Canada
Posts: 8,133
Rewards Points: 626

Re: Late Payment Due To Death In Family?


I agree, with TNT (a first for everything) Paying off debt is WAY better than accumulating a cushion. The debt you are paying off can be re-used if necessary (hopefully not) to pay back material creditors or subs.

It's pretty simple math, if the interest you're paying is greater than the interest you're making..... pay off debt
__________________
New & restoration masonry construction
www.dominionmasonry.ca
dom-mas is offline  
Old 04-11-2014, 05:44 PM   #40
Pro
 
dom-mas's Avatar
 
Trade: masonry
Join Date: Nov 2011
Location: Ontario Canada
Posts: 8,133
Rewards Points: 626

Re: Late Payment Due To Death In Family?


As for the problem at hand. What's your relationship with the payee like? Ever dealt with them before? If so have they ever been late before? If yes, did they pay promptly afterwards? Any other reason to feel like they may be trying to shaft you? They said payement on completion....did they give you anything before the deficiencies were noted?

Advertisement

__________________
New & restoration masonry construction
www.dominionmasonry.ca
dom-mas is offline  


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Payment Schedules Al Taper Business 1 09-02-2012 08:32 AM
Payment schedules ChimneyHill Business 16 06-14-2012 05:29 AM
Getting started with payment options finakat Business 4 04-03-2012 07:03 AM
credit cards for payment? J.M. Business 137 12-21-2011 07:10 AM
Collecting payment through the Contractor's Bond cwatbay Business 2 12-15-2011 01:40 PM

Join Now... It's Fast and FREE!

I am a professional contractor
I am a DIY Homeowner
Drywall Talk is for
PROFESSIONAL CONTRACTORS ONLY!

At DrywallTalk.com we cater exlusivly to professional contractors who make their living as a contractor. Knowing that many homeowners and DIYers are looking for a community to call home, we've created www.DIYChatroom.com DIY Chatroom is full of helpful advices and perfect for DIY homeowners.

Redirecing in 10 seconds
No Thanks
terms of service

Already Have an Account?