Never paid, what next
Never paid, what next
(OP)
I had a client that paid on time for the first engagement, but for the next two engagements, basically ignored me and won't even return my calls. He's not a big company. Other than a demand letter and small claims court, should it get to the point where I give up, is there anything I can do to notify the parties that my work can no longer be relied upon due to non-payment? Such as notifying the building owners and the state's engineering board, public notice etc? I can't imagine that I'm the first PE who ever got stiffed, so any advice is helpful.
Thanks
Thanks





RE: Never paid, what next
If you do, what remedial procedures do you mention in it?
Whatever you do, keep billing once a month to maintain your claim.
Mike McCann, PE, SE (WA)
RE: Never paid, what next
When you write 'your work can no longer be relied upon' are you saying that your design is no longer valid? I'm guessing you aren't saying that. Maybe you would want to re-word that.
RE: Never paid, what next
David Simpson, PE
MuleShoe Engineering
In questions of science, the authority of a thousand is not worth the humble reasoning of a single individual. Galileo Galilei, Italian Physicist
RE: Never paid, what next
B.E.
You are judged not by what you know, but by what you can do.
RE: Never paid, what next
RE: Never paid, what next
Now that you have been bitten, you need to talk to your contract lawyer about modifying your contracts with insertion of language that states an express lien is hereby acknowledged to secure the amount. Then continue with the penalties for late payment. Some states will not allow a unilateral lien, but if the customer acknowledges that one exists by signing a document you have a better chance. This way the lien is in place from the beginning of the contract.
B.E.
You are judged not by what you know, but by what you can do.
RE: Never paid, what next
RE: Never paid, what next
Mike McCann, PE, SE (WA)
RE: Never paid, what next
Also, I'm almost entirely on net 30 for commercial work, unless it's a new client (who is required to pay a retainer) or residential (where the homeowner is required to pay all of it on the date of the visit or at the time drawings are released).
I'm going to run this by my lawyer and insurer next week: rescind the reliance for the one report due to non-payment and ask that all copies be destroyed, and go to small claims court for the larger one. The client won't like me rescinding the reliance, because 1) the client's work hinged on my opinion (and I have a reliance clause in my reports), and 2) I am copying the property owner (whose copy will be mailed 10 business days after the client receives his copy). If he's smart he won't want that rug pulled out, just from a liability perspective, so I expect that invoice to be paid eventually. I also expect him to pay the smaller one once he gets notice from the court.
RE: Never paid, what next
Once he was on net 30, he started slipping payments, a week or two at a time until he was about 90 days behind, any time you called him about it, he would promptly send a check for a few thousand, but not enough to settle the whole bill, but enough that you did not worry about him.
To make a long story short, he got out of the door with $25,000 worth of product, then switched suppliers, leaving me high and dry. He also then skipped town.
In the investigation as to where he was and what he was doing, we found this was a pattern with him, establish credit, get as much as possible without paying then skip to another state, and start again. He finally ended up in jail, unfortunately I was not the one who put him there.
This is why I am very leery of people who pay at first then slow down.
B.E.
You are judged not by what you know, but by what you can do.
RE: Never paid, what next
Just asking...
Mike McCann, PE, SE (WA)
RE: Never paid, what next
Small claims court has a value limitation so make sure you are within it, otherwise get a lawyer.
RE: Never paid, what next
RE: Never paid, what next
Yes unfortunately he got out in 2010. He was a very smooth talking sleezeball. I do not know what he is doing now, and I don't want to know.
B.E.
You are judged not by what you know, but by what you can do.
RE: Never paid, what next
If your product can't be repossessed, keep a retainer against the last payment or expect to get ripped off and take your lumps.
Good luck getting your money back- hope the courts do something other than just waste your time.
RE: Never paid, what next
My Dad was a gas appliance repairman.
He sold and installed a new furnace.
Presented with a bill, the client said he had no cash.
In lieu of the $300 (in 1950 money, when that was a lot),
that he was clearly never going to get,
Dad accepted something like 100 cases of Mission Brand Canned Peas,
which became a major part of our diet for years.
I still can't eat the damn things.
Mike Halloran
Pembroke Pines, FL, USA
RE: Never paid, what next
I had a contract as a subcontractor to plastic particle strip and re-paint a C5A fuselage used as a training aid by the air force. Due to the size of the job I demanded progress payments. The guy paid every one until, ( you guessed it.) the last one.
B.E.
You are judged not by what you know, but by what you can do.
RE: Never paid, what next
RE: Never paid, what next
Dan - Owner
http://www.Hi-TecDesigns.com
RE: Never paid, what next
RE: Never paid, what next
Congrats SP
RE: Never paid, what next
Mike McCann, PE, SE (WA)
RE: Never paid, what next
B.E.
You are judged not by what you know, but by what you can do.