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A response to another thread got me to thinking, what type of job seems to be the hardest to collect from?

I usually do not have problems with HO's. I did get duked by a church, a few GC's tried to no avail, but the real people I have the hardest time collecting from is a bank! Thats right, a bank. Seems any time I do any work for any bank they are the slowest, most evasive people on earth.
 

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I don't own/run the company but I only know of one contractor who tried to stiff us. The architect kept making changes and we literally re-roughed some bathrooms four times. We weren't the only ones busy, all the trades were constantly making changes and ripping out finished work. When all was said and done the homeowner was handed a bill for more then twice the original quote. They refused to pay any more then the original price and the GC passed the savings along to all the subs.

The one that is impossible to collect from is homeowners in two situations. The first is a full pool, it's the first thing we check when we get a stoppage on a septic system and about half the time that's the problem. We usually only charge $75 which is the absolute minimum rate but they won't pay it even if you have to spend an hour locating the thing. The second is when we get to a no heat call to find it's HVAC. We still charge a $75 service charge for driving out there and looking at it. They never pay since all we do is recommend an HVAC company.
 

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Ridgid tool user
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I had a bounced check once from this lady but she called me up and gave me cash the next day and some extra (money) for the trip out there.

The worst customer and best I had was a real estate agent who took 2 months to send me a 250 check. But he he referred me to 6 other customers so things kinda balanced out.
 

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In cronological order

General Contractors "You get your money when I get mine"

Banks " It takes at least 60 days to process the paper work"

City or Federal Programs " The paperwork needs to be processed by at least 17 different agencies, you will see it in a few months"

Rich People " Did I forget to put that check in the mail"

Poor people " Sorry but we had to buy beer and crack this week. Can I pay you 5 bucks a month?"

Relatives " You expect your own brother to pay?"
 

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I think you need to understand who you are working for before you start the job. If it is a HO it is payment upon completion. If it is a GC the payment terms should be in the contract. A property management company gets 30-days and calls after 60-days.

Mark
 

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waterheaterzone.com
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GCs....which is why it is my policy to NEVER work for them. Once I worked for a GC privately at his own house. I was working directly for him, since he was the homeowner so I thought this one didn't count in my NO-GC policy. The contract stated that I BE PAID IN FULL UPON COMPLETION. He took over 70 days to finally pay after multiple phone calls...but at least I got paid. So far I have NEVER been stiffed by anyone as I make VERY CLEAR C.O.D. CONTRACTS for every service call.
 

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Plumbing and Gas SCO
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Insurance companies. I went to a trailer that had frozen up (tenants never gave notice of leaving, just left and had gas shut off). I replaced nearly all the water lines in there (poly B) with pex. Replaced fixtures and toilets that had been damaged. In the end it was a fight between the HO, me and the Insurance company to get paid. The insurance company insisted that the HO be responsible for anything that was no split but replaced anyways. The HO insisted they pay because the lines may have failed at some point. I had talked with both, before starting the job and thought the parameters were set. Took 6 months to get paid. Now, all HO pay the bill and get reimbursed by their insurance company. No exceptions.
 

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waterheaterzone.com
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Insurance companies. Now, all HO pay the bill and get reimbursed by their insurance company. No exceptions.
That is the best policy to have with insurance companies. I have always done it that way. The homeowner pays me IN FULL, and then I let them battle it out with the insurance againcy to get their money. Same with home warranty companies, I won't work for them at all, EVER.:no:
 

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Banks " It takes at least 60 days to process the paper work"
Hmmmm......... I certainly hope you get paid quicker in the coming months. Cashflow should be good. Might I suggest a much much higher hourly rate.
 
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