[Bill Schwab]

One of the hardest things about managing a business is the flow of the cash. We started billing every third day to help with that, and, even with that proceedure, we still had one get through the cracks. It is a couple who do not share finances, and are and were on different pages of the project. He wanted his back and side hills opened up to make a yard, and this was work over and above the original contract. After a $14,000.00 bill was presented for the extra work, he blew a gasket. Other circumstances was that adhesive on the Country Manor wall we built had failed, almost on every cap. Instead of saying that he would pay us after we repaired the cap, he chose to tell me to get out equipment off site and never come back. Then he calls saying he will forget about the caps falling off if we forget about the $14K...

You can imagine what I told him. We have a lien on his property, we also have a notice of intent placed on his credit report. With that in place, he cannot get any type of loan because it informs potential creditors of pending lawsuits. We are going fourth with foreclosure proceedings after a mediation hearing in a few months.

What does this mean? Well, that probably the money he owes us will be eaten up in attornies fees, as the first wave of the assault cost $1,200.00. You can have all the fee and collections clauses you want in your contracts, but the bottom line is, judges always rule that each party pay attorney fees. We can go after court costs, which, seem to be fairly high.
The arguement I have is that the caps and any plants that he claims dead are warrantee issues, to be addressed based off the original contract. The money that is owed was for extra irrigation, drain lines, and excavation of his back slopes.

The guy has some underlying issue going on in his life and is using us as his whipping post. In the old days I would bring a D-3 back to the site and fix his wall accordingly unless he cut a check. The only avenue we have is foreclosure, and his bank (mortgage holder) most liklely won't allow us to do that.

Imagine how much he would be into us if we billed 1/3, 1/3.1/3, or 1/2,1/2....I am glad it is only $14,000.00 at this point rather than 30 or 40K.

[Rex Mann]

We do the 1/3, 1/3 1/3 deal. However, when it comes to change orders, we collect all the monies upfront for the change(s). For some reason, it was always a challenge to collect for those change orders, not anymore.

There is only one aspect I dislike about being in business for my self, well maybe two if you count all the paperwork. I hate having to track down money owed to our company. Only had to lien a property one time in 9-years. And, have had no problems for a long time.

BTW: I knocked on wood as I typed that. I know I just jinxed myself. I'll have to say a prayer at Mass today

Peace,

Rex

our web site

[Stonehenge]

I think I picked up something from another member here, who told me a story of his along this same vein, having called his attorney and telling him "If all you can get out of them is blood, then get blood."

I think there is something to be said for grinding these situations out to their end. I had a similar one that I bailed on, for about $7K. Part of me wishes I stuck it out, if for no other reason than to rub their faces in it. Plus you gain some valuable experience in traveling this (hopefully) seldom-traveled path.

[Bill Schwab]

That is exactly what we are doing...The guy has the money, and, if we get a ruling, we can foreclose as lon g as we can assume his mortgage. That is where his bank would step in. So, at the same time I am putting all the legal means in place, we are also looking at finance for a $500,000.00 property... We have a few friends who have enough money to write the deal and we can all profit if we get our ruling and push comes to shove.