Free Business Forum UK  

Go Back   Free Business Forum UK > Business Services and Help > Legal Advice and Help

Legal Advice and Help Forum for Legal Matters relating to Business, Employment and Contracts. As well as discussions regarding Legislation and Business Regulations.





PublicLiabilityInsurance.org - What Is Public Liability Insurance




Non-payment for work,where do we stand?

Legal Advice and Help


Reply
 
LinkBack Thread Tools Display Modes
  #1  
Old 22-06-2011, 05:27 AM
Red Red is offline
New FBF Member
 
Join Date: Jun 2011
Posts: 5
Thanks: 0
Thanked 0 Times in 0 Posts
Default Non-payment for work,where do we stand?

Hi guys. So glad Ifound this forum.

My husband and I run a small business. Only been going a little while with minimal capital, so cash flow is always a problem despite being busy.

We recently completed a job for a customer. The job has taken a while to do, although the ustomer was advised this at the start. It was a verbal agreement, nothing in writing, although we have witnesses and various correspondence between us.

He paid us some money up front to buy parts needed, although this does not cover all that we have spent on it. Nowthe job is complete, he is not answering emails or returning phone calls.

Basically, are we within our righs to sell his property to recoup our costs or do we hve to go the route of small claims?
If you need more details on the job in question I'll elaborate , but just trying to keep it simple for now.

Any advice/opinions more than welcome. Thanks.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote


Register to remove these Advertisements.
  #2  
Old 22-06-2011, 07:53 AM
IP
Guest
 
Posts: n/a
Default

What time scale are you talking since you were last able to get hold of him?
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #3  
Old 22-06-2011, 04:26 PM
Senior FBF Member
 
Join Date: Feb 2011
Location: Newcastle upon Tyne
Posts: 773
Thanks: 5
Thanked 110 Times in 96 Posts
Default

This is a classic scenario in business. As work nears completion, and money falls due, the customer evaporates.

Step one is to track them down, and provoke the conversation about their intentions. Be courteous, but utterly precise. You need to know exactly when they plan to pay. Be read to negotiate, the best outcome for you is the payment, not a dispute.

If they do not intend to pay, my counsel is to move on, and chalk it to experience. A percentage of people do not pay in this world - traditionally they were called thieves.

You can go the small claims court route. However, if the customer has no money, the court is powerless to make them pay. Others will have more knowledge of this.

Next time, do everything in writing.
__________________
Paul Norman
OrangeTree Development
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #4  
Old 22-06-2011, 05:37 PM
FBF Member
 
Join Date: Mar 2009
Location: Mallorca Spain UK
Posts: 2,269
Thanks: 484
Thanked 361 Times in 303 Posts
Default

Quote:
Originally Posted by Red View Post
Hi guys. So glad Ifound this forum.

My husband and I run a small business. Only been going a little while with minimal capital, so cash flow is always a problem despite being busy.

We recently completed a job for a customer. The job has taken a while to do, although the ustomer was advised this at the start. It was a verbal agreement, nothing in writing, although we have witnesses and various correspondence between us.

He paid us some money up front to buy parts needed, although this does not cover all that we have spent on it. Nowthe job is complete, he is not answering emails or returning phone calls.

Basically, are we within our righs to sell his property to recoup our costs or do we hve to go the route of small claims?
If you need more details on the job in question I'll elaborate , but just trying to keep it simple for now.

Any advice/opinions more than welcome. Thanks.
Need more info as to what the work was and stuff like that in order to give best options, hi and welcome by the way ..
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #5  
Old 22-06-2011, 07:01 PM
Red Red is offline
New FBF Member
 
Join Date: Jun 2011
Posts: 5
Thanks: 0
Thanked 0 Times in 0 Posts
Default

First of all, thanks for the warm welcome and the replies.

The job in question is restoring a scooter (pimp my ride kind of job )

So we collected the scooter from the customer last August. He was told we couldn't even begin to look at the job for at least a month. His reply was that he wouldn't need it over winter, so to take our time and he wanted the best of everything. He paid 1000 up front to order some of the parts needed. Work eventually commenced and he changed his mind a few times about the spec, including a very expensive paint job which needed contracting out, so he paid another 1000 towards costs. Since then, work had progressed as and when time allowed knowing he was in no rush to have it back.
He enquired how things were going around April time as the wether had warmed up, so we said he'd have it back for May, which he was happy with. Admittedly, a few of the 'trick' extras took some time so it was towards the end of May when it was complete. I contacted him first week in June as hadn't heard from him, and he read my message but didn't reply. I sent another message, asking when we could get it back to him and we haven't heard anything (message unread). My husband has tried phoning and no answer.

I'd love for this to be resolved amicably as I'm sure he'll be over the moon with the work. But we have spent over 2000 in parts alone, so not taking into account custom parts made and labour, we are well out of pocket and cash flow being very tight, could really do with the money.

If worst came to the worst I was wondering where we would stand in selling the scooter to recoup our costs, as it's just sitting taking up space. I'm really hoping it doesn't come to this but what do you think?
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #6  
Old 22-06-2011, 07:15 PM
IP
Guest
 
Posts: n/a
Default

A repair business that I had some ownership in many years ago, discovered that if the customer failed to pay / collect after 6 months that it could sell the goods to recover it's costs.

I can't say that definitely applies to your situation, but maybe gives you a baseline to think about.

Whatever you do, keep good records of how and when you tried to make contact.
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #7  
Old 22-06-2011, 07:19 PM
Red Red is offline
New FBF Member
 
Join Date: Jun 2011
Posts: 5
Thanks: 0
Thanked 0 Times in 0 Posts
Default

Quote:
Originally Posted by IP View Post
A repair business that I had some ownership in many years ago, discovered that if the customer failed to pay / collect after 6 months that it could sell the goods to recover it's costs.

I can't say that definitely applies to your situation, but maybe gives you a baseline to think about.

Whatever you do, keep good records of how and when you tried to make contact.
Thanks. I definitely will keep all correspondence and dates, just hope I won't need them
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
  #8  
Old 07-07-2011, 09:55 AM
New FBF Member
 
Join Date: Jul 2011
Posts: 1
Thanks: 0
Thanked 0 Times in 0 Posts
Default

I got excellent legal help from connect to law

Keeping good records of everything is also so important
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Reply

Bookmarks

Tags
nonpayment, stand, work

Thread Tools
Display Modes

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
Secure Payment! Reviver General Business Questions and Discussion 5 26-05-2010 03:36 PM
self employment non payment payment PETER D Legal Advice and Help 12 11-11-2009 09:21 AM
Payment Not Recieved david64 General Business Questions and Discussion 4 19-08-2009 09:46 PM
AV Stand Chubster Offers and Promotions 5 16-10-2008 07:30 PM






All times are GMT. The time now is 02:07 PM.


Powered by vBulletin® Version 3.8.1
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
SEO by vBSEO 3.3.1
© Free Business Forums 2011

Ad Management plugin by RedTyger