Client refuses to pay?

[zadok]

Hey, I am fairly new to running my own small construction business and I don't know really anything about legal matters.

I was recently hired to build a second story addition, and there was a contract that was signed with a specified contract amount. I did not write the contract, It was the standard AIA contract and I just removed some of the parts that were more suited to bigger construction firms and would never apply to me.

Anyways - there was no specified date of completion listed in the contract that was signed. There was a verbal conversation in which the homeowner informed me of when he wanted to be able to use the house (summer house), and I agreed to try and finish by that time. We then had significant rain delays, during which is rained 3+ days a week for 3 weeks during construction and pushed back my time frame. I told the homeowner I would finish as soon as humanly possible - I worked 7am to 8pm, I paid overtime out of my own pocket, etc to try and get this done for them in time.

Unfortunately we came in about a week and a half past the time that he had stated, regardless of my efforts. However, I did finish the project and send him a final invoice (the invoices are given to him after each phase of construction and cover the materials and labor used for the time BEFORE the invoice, not after). He sent me a message back saying because of delays of the deadline and how unhappy he is, he is terminating my employment (which he can't do, it says in the contract I need 7 days written notice before he can cancel the contract) and he wont pay me, and if I have any questions I can call his lawyer.

What on earth do I do? He signed the contract...I have the whole thing in writing, but he's just not going to pay me? How do I proceed? How much will it cost me to get this money from him? He owes me about ten thousand dollars, and most of that doesn't go to me - it goes to paying my workers and the lumber yard.

[delron72]

Are you a licensed contractor? Do you have a signed contract?

If so, file a mechanics lien against the property. The owner will NEVER be able to sell nor will the bank after foreclosure until you are paid off.

[darrick34]

Are you a licensed contractor? Do you have a signed contract?

If so, file a mechanics lien against the property. The owner will NEVER be able to sell nor will the bank after foreclosure until you are paid off.

you have written documents and he signed it, that should be enough for you, I would suggest getting a lawyer and sue him, when you win you will get your money plus compensation for the trouble of going through this whole ordeal, dont do anything silly like break into his place or anything, keep your calm and dont threaten him as his lawyer will pick that up and shread you to bits at the court because the lawyers job is to find faults and win.. its really bad of him to do this you deserve your money back, find as much evidence as you can find like weather timetable from when you were delayed also get written notes from your workers saying what happened and why things happened, the more you have the better the outcome,,, sorry but getting a lawyer is the best thing I can suggest

[bronsin]

You have major issues and you need to see a very good lawyer. If you have signed contracts with the subs and the general contractor, they will sue you very soon.

Even if you put a lien on the property, that is only a lien, and you won't see any money until the property is sold.

Have your lawyer contact owner's lawyer. Maybe they can work something out. In the meantime, try to keep the people you owe money to calm because you don't want them angry with you.

But, in the future you need Business Owners Liability. Get that right away.

[arne33]

Get a lawyer to use for business matter such as this. Take him to small claims court. Let the lawyers hash it out. DO NOT CALL HIS ATTORNEY ON YOUR OWN!