How to Collect Money From a Customer

[@yipster0290]

There was an excellent Concrete contractor in the Seattle area. One time he completed a fantastic job on a driveway in a really expensive neighborhood. After the work was done the homeowner tried to nickel and dime him and not pay what he agreed to. The contractor refunded what he had been paid, ripped up his driveway and took it away in his dump trucks. It was epic. He was an older contractor that had plenty of money and was tired of peoples crap. He actually picked up 2 or 3 more jobs from that neighborhood. The neighbors know what happened. Neighbors are a powerful source of business as well.

[@mikecowan5786]

damn bro he's a savage

[@Dirtmonkey]

Wow- great story!

[@mikecowan5786]

Something I would do aswell. Depending on the situation. Sometimes there's a point in time where you got to lay down the law and make a example out of someone and to show you aren't going to tolerate their bull shit

[@Dirtmonkey]

True!

[@brennandc]

Awesome! As a concrete contractor that's something I've always though about as a last resort if need be. Although I wonder what the law says (here in MN), would it be property vandalism at that point, or does the contractor still technically "own" the concrete?

[@KX6D]

"Sometimes the best money you make, is the job you didn't take."

[@jordanweaver3039]

I love this

[@summitcastle3694]

Truth

[@shovelheadseven]

I have started to use the same logic when I am deciding to take a job or not. Tired of people who want ro pay as little as possible or not at all.

[@terrencecarter7508]

Best comment here

[@AMindInOverdrive]

I know a guy who was owed money from a local Chinese restaurant for window cleaning or something similar. So after many attempts to get paid, he went one evening when the restaurant was full, and stood in the middle the dining area shouting "I want my money! I want my money!..." over and over. They rushed out and paid him straight away.

[@libertybelllandscaping1757]

In the beginning I would show up on Thanksgiving, Christmas or a dinner party and demand payment in front of their friends and family. It always works. Then later on in my career I would tell them that they are the cheapest human being that I ever bought. Now I take them to court. There is nothing wrong with asking for a sizeable down payment in advance if it is legal in your state. If you have a great reputation the customer never complains. Also, I have the customer pay for the materials directly to the vendors in advance. that way they have some skin in the game. it shows that they are serious about doing the right thing. There is nothing worse than showing up to the job with your whole crew and all the equipment you need for that job. Then you don't get your 50% before starting? What are you supposed to do then? Call another customer and ask to start on there property without going through protocol? This is a business not a charity. Use wisdom my brothers & sisters. God Bless

[@dylanpaul1212]

🤣🤣🥜’s

[@pacibaco]

Disorderly conduct ... may net you a $450 ticket

[@jclar3565]

Shoulda got arrested and sued

[@aprilgeneric8027]

@@jclar3565 what's a lawyer cost these days to sue some one...more than the window washers bill right by what 200-850% ? and it's not guaranteed you will win. plus he has legal right to counter sue plus damages. $250 bill turns into minimum $12,000 bill. how's the chinese fortune cookie not known by heart by the operators? squeaky wheel gets the grease. customers don't like doing business with crooked businesses and that can cost them alot of money over time, short and long. “It takes a lifetime to build a good reputation, it only takes a minute to lose that good repute.”

[@kerty1977]

The way I run my company is, 1/3 down to get on the schedule (Covers the materials) , second third down when we start the project and the final 1/3 once the job is completed. Our contract explains the payment plan in great detail. In the 20 years we have been in business, we have never once had a problem collecting.

[@josephatkins8895]

67% paid for a job barely or not even begun? No, thank you.

[@repeal1628]

Joseph Atkins you like people to work for free....until you can screw em.

[@josephatkins8895]

Apparently, you've never been on the receiving end of a workman not doing what he promised to do. I have. Multiple times. Contractors belong to a barely-regulated industry (yes, there are lots of rules, but no enforcement, just lawsuits) and the Better Business Bureau's best-kept secret is that its ratings and memberships are utterly meaningless. I don't think ALL contractors are liars and cheats -- Stanley Genadek is a good example of an honest and conscientious tradesman, apparently -- but you don't go onto a used car lot thinking that guy has your best interest at heart. P.S. Your anti-Semitism doesn't help your case. At all. Get with the 21st century, Repeal16. Sorry the Jews in Florida won't let you swindle them freely. Wait, no I'm not sorry. Shame on you.

[@bonsummers2657]

In California, no more than 10% or $1K for downpayment on a job at the time of contract signing, whichever is less; speaking of licensed contractors.

[@alfirst9087]

@@josephatkins8895 you could always do it yourself

[@dansallsadventurersinlife4311]

sorry for always commenting on your old videos, I watch them over and over as need be. your information is very helpful thank you for all you do for us.

[@pmg2120]

I’ve owned an asphalt paving company for almost 30 years now and although it’s a different business than landscaping, it’s also the same, because we’re both working for homeowners. what you say in this video is absolutely spot on. Always get 50% when you start and always get paid upon completion. The part where you talk about trusting your instincts about a potential customer is really important. Several times a year I will not even give an estimate to someone because my bat senses are tingling and I know that customer is going to be trouble. One thing I might add is if someone try’s to get you down on the price you quote them, although annoying, it usually means that they do plan on paying, or they wouldn’t bother. Also I’ve noticed that most problems that come up are caused because the customer has wrong expectations. This is usually caused by the contractor not getting things straight with the customer from the beginning. Great video, I wish I could have watched it when I was starting out. It would have saved me a LOT of headaches.

[@huetango1121]

Got a job handdigging a sewerline with a shady business. After job was done of course lady didnt want to pay. I got into her car and sat there quite some time. She finally paid me after i asked her what was for dinner. I hate people who expect something for nothing.

[@thomasdrinkmoore9827]

You made a very good point about gut feeling. I am at a point where, when I have a bad feeling about someone, I will not work for them at all.

[@Dirtmonkey]

Same here. OR I will require a bigger down payment and progress payments during work. Instead of my final invoice being 50% of the job my final invoice by that time may only be 10% of what's left. I have done that when my gut tells me something is up.

[@cupofjotv8195]

If I get a bad gut feeling I will charge 3 times my normal price just so they say no, if they still say yes I take 50 percent up front. If I get screwed over I still made more than I normal would.

[@mathieuconklin3146]

@@Dirtmonkey How often are you correct in your gut feeling after having done work for them?

[@StoneyRidgeFarmer]

Great video brotha.....I had my own "Handyman" type business and I've had guns pulled on me...people trying to fight me...when money is involved...you loose friends....I also had rental property....ughhhh don't get me started!

[@Dirtmonkey]

Really appreciate the comments and thank you for viewing !

[@bch5513]

Ugh. My OLD rental properties.

[@joshpaul6933]

I deal with ALL this stuff currently in beaver county pa 🤦

[@thesaltycarpenter5245]

I've removed work for failure to pay. It's funny how fast the checkbook comes out when you have a sledge hammer in hand.

[@Dirtmonkey]

LOL Love it!

[@jasonmfshow]

I recently had to do that. I "repossessed" a pool pump and filter when I knew they had a pool party planned. :)

[@joemoment-o1275]

rooofer1 like a shitty customer is gonna sue unless theyr truly stupid.

[@wespeacock793]

Good point! I had a guy stiff me 2/3 on a job that was leaving for vacation, paying for his adult children and grandkids (his excuse). He offered to write a check and take the $900 cash I had in hand but I could tell by his demeanor that 10 bucks an hour was far better than zero. I had no written contract as I'd done numerous other jobs with full pay previously. Huge mistake on my part...He did leave for vacation (already in deep doo-doo with his HOA for a banana yellow paint job on his house (done while on his prievious vacation). For S&G's I had one of those silly 90's plywood "pipe smoking man silhouettes that had been removed from a small weed-n-mulch job sitting behind my garage. Fresh coat of black paint dried, I grabbed a can of Scag paint and added the word CHEAPSKATE vertically. I wanted badly to nail it to his prized Japanese Maple front lawn "statement piece" but I'm not a true vandal. Added a 6' treated 2x4 and staked it in next to the tree. HOA can't trespass but they did take pics and file more grievances! He no longer resides there!

[@GBMusicCompany]

Great idea! Could they call the cops on you for property damage, if you remove your work they didn’t pay for?

[@helen4997]

Thank you so much for sharing/ My son got burned by our neighbor! So sad! Thank God it was not a lot of money, but the work he did was super hard, he dug 5 4'Ft deep holes on our yard; (con pico y pala) 5 fence posts and put inside 8' Ft poles for a fence that fell between us. We did our share of an oral aggreement in which they have not paid since Hurricane Irma.

[@stevenbeebe35]

Rip out the fence posts and keep them on your property. If the cops show up, yea I was removing the fence posts and will reset them later, continuing the job... I am reworking the job. 99% of cops will put on a $HIT eating grin and tell the cheapo " it is a civil dispute ".

[@dalemitchell6478]

Great advice !! In 40 yrs of doing flooring ive only not been a hand full of times !! but every one of those customers very wealthy !! The average client paid right away !!

[@pnutmal]

I got screwed over a couple of times early in my career big time ! Having to eat labor and materials. Now I will only pour concrete for a few select contractors in my area . I will not work for anyone in the General Public or contractors I do not have at least five years of solid business relationships with. Also I never pay for any materials, labor only work . The way I can pull this off and stay busy year-round is because I provide an excellent service at a very competitive rate . I turned down more work than I do . I'm sure I'm more fearful then I should be . but like I said ,I can lose money sitting at the house and not even break a sweat doing it .

[@billcallahan2830]

so true. you're fair honest and do a good job. You are entitled to be compensated. it always seems "friends" or those who portray themselves as friends are the worst. always your best buddy until it's time to pay.

[@PrimoLandscaping]

More interesting and pertinent real world advice from you Stan. Thanks! My story about customers not paying for a good long time comes from last year when an embassy I was working for did not pay me more than 2 months after I told them to find another contractor. I was emailing and calling the secretary everyday when I finally was summoned to go pick up my check and sign a receipt which was 100% in a foreign language. Never again will I work for an embassy!

[@Dirtmonkey]

PrimoLandscaping.ca A foreign Embassy? I could see where they might try and abuse the typical system to their favor.

[@marcosgarcia-zs7ne]

Primo Landscaping mm

[@kurtschuster8078]

Good man walked away from a big Embassy job my self ,dicking around .

[@jvallieres1979]

Amazing advice. It’s good to know that there are some honest people like yourself still in this world.

[@ChuckCanada1]

I have been screwed by ''friends'' on a couple different occasions and now I demand half down plus total costs. This is only working with computers mostly but its still the same principal. Make sure you do what Stanley said and get paid up front because once your done and gone your out of sight out of mind. And don't just trust friends and family, treat all business like business.

[@Dirtmonkey]

Right! Thanks for sharing & keep up the good work 👍

[@willdavidsonakawd3062]

thanks for sharing

[@Osorio1029]

Thank you that was a great video.I started my business around a year ago and I didn’t realized how hard it is to collect the money from the customers.

[@trwelds6770]

One way I do things, which is common in custom fabrication is on a hourly job is to work till the money is dry. So if they give you $500 and you are $100 an hour, you tell them the rate ect and then after 5 hours you go back and get more money or leave.

[@mark-jx9uh]

Mr. Weirdo very dirty

[@deanmcghie1206]

Not dirty at all,if someone objects it proves that they had the intent of screwing you over.

[@ifencelimited9170]

nothing wrong with this

[@LindCoulee]

Awesome videos. You do what most GC's can't, are afraid to, don't know how to, on and on. Congrats on success. You earned it.

[@Dirtmonkey]

Thanks Lind

[@falconflooring2797]

The first story of the neighbor and friend job gone bad is contracting 101 which is to never do work for family or friends. The nuisance fee should not be a flat rate dollar amount but rather a set percentage of the overall job cost. That alone will separate clients from high end clients as well as the way they do business. The moment you show up and getting half down is not suggested. You're getting half down at that point for what? Just showing up? Keep in mind there are many contractors of all different trades that do exactly that and either never show up or at best show up when ever they feel like it. A contract which includes the payment schedule should be written up and signed by both parties. Additionally not only is demanding half down day one because you showed up going to make a client think twice, it's also not legal in many states. There are far better ways to ensure the clients you work for not only have the money for the job, but also pay you with that money that they have for what ever work has been done. If money issues are happening especially in today's age, contractors of all sorts are either attracting the wrong type of clients or not formatting the money process correctly.

[@sirpiken]

This really depends on how much material you are buying. If the job is mostly labor, asking for half may be unreasonable but asking for half when you just spent 90% of that buying material is no where near unreasonable and is the only way you can protect yourself. Once the material is in place it's not usually possible to return it.

[@mmmcquoid]

you have not been in business long or have never gotten screwed. 50% down once started or get someone else! law has no bearing .this is the deal or get someone else.

[@jeepman8842]

Bottom line people suck. Contractors customers people of all races, jobs, income levels religions what ever type of person your dealing with , doesn't matter. People suck. Not all are bad or scammers. But the bottom line is people suck. People will try to screw you no matter how rich , wealthy "moral" what ever. People suck. They will try to get away with what ever they feel like they can. I have hired contractors in the past and never have a issue with the deposit or paying them half , now if i feel like they are jerking me around because they have bigger jobs than mine and they feel like they can brush me off then shits going to get nasty, but for the most part every contractor i have dealt with is decent and runs a solid business. But again people suck.

[@blackopal3138]

This is a great thread...Every trade is different and the trade of the host of this thread is LANDSCAPING. If I'm going through the few hours of measuring, calculating, ordering 2K worth of crap to dumped on your property you can dam well be assured I'm not paying for it also. And then breaking my back for you a perfect stranger who got my number from Craig's List. Also you are there with the 2K in material ready to work he has agreed to pay 4K paying 50% at this point seems a pretty fair 2000Viper you think that's not fair to you? I have an ahoal that needs a good licking...…. In landscaping materials work out to about 50%, labour, ops, deliveries etc. the rest. So you are still taking a risk when you start. He is not. That is the underlying point and rule to the whole thread. Written contract is a non-sequiter in this day age, shyt if your grandma says she'll give you ten bucks to drive her to the mall you get it in triplicate, please that's not advice. Mitigate risk both parties. I work it unique with every client. It's usually not hard to agree on something, but to add to Jeep Man's comment; people find ways to interpret things even when written down(it doesn't cure all as some have suggested). They also find ways to justify those interpretations and convince themselves they have good reason to cornhole you with a corndog and they are still a good person. so if you DON'T write it down it's almost foolish to expect you and client will have the same interprettions or recollections of what was said etc. Every single time their interpretations will lean in their favor, reasonable or not. Again this is landscaping. If you are a plumber the toilet works or it doesn't. In a multi-skilled, multi-faceted contract like landscaping their are many ways to tune your twat with a tuningfork….. Mitigate risk. Don't get into deep. If he is not willing to meet you halfway on the risk don't take the job. What ever happened to an honest day's work for an honest day's pay? Pay the materials and $300-$500 or whatever bucks at the end of every day. $50 for an extra worker, you split it with the worker. As your crew gets better your rate goes up, soon your charging $1000/day plus splitting $100 with 5 different workers. dam I talk too much, mofo 4am, landscaper, lol payce yo

[@chadtaylor1148]

I dont know about everywhere but here in WA state contractors have to be licensed. This means you can go look them on the WA state website and if they are listed "in good standing" then they have a substantial bond so when you pay %50 up front you can be assured that they will follow thru or the state will pull from their bond to make it right and then go after the contractor for amount pulled from the bond. This is an amazing feeling when you are paying upfront. This protects the consumer, the contractor and the state who produced the license.

[@keith-kalfas]

Great video, great advice. Thanks.

[@Dirtmonkey]

The Landscaping Employee Trap Thanks Keith! Your info is always top notch so its much appreciated hearing from you!

[@ellkir1521]

I always do ten percent at signing, 1/3 at start, 1/3 at 1/2 point, and final upon completion. Makes getting my final paycheck so much easier at the end. Change order money is due at signing before work commenced before change is done ALWAYS. First thing you learn is the final check is the one that's ALWAYS the hardest to collect. If the final check is lower, it's much easier to collect it.

[@brandonconst.4244]

Think about ordering a product online. At almost all website businesses you pay in full before they send the product. I suppose the customers who refuse to pay for a job upfront also won't order anything online unless they can receive the product before paying. Right? Great videos Stan! Thanks for taking the time to share with us!

[@douglasmorton6121]

This one was my Dad's story he passed on to me. He did HVAC and was on a job site when he learned from the plumbers and electricians that the customer hadn't paid them on time when he was supposed to. It was the second missed payment. My Dad told them that he would get paid, and he installed the furnace and A/C. They thought that he was crazy. Sure enough, the guy failed to pay and everyone put mechanics leans on the property. He still didn't pay and everyone was screwed... except my Dad. The customer kept calling to complain that the furnace wouldn't work and that it kept shutting off. My Dad told him repeatedly that it was a good furnace and would work as soon as he was paid. After a few weeks of cold weather, (and stories going around that the same guy screwed HVAC techs over that he called to figure out why it wouldn't work), he called my Dad and agreed to pay cash. With cash in hand... my Dad disconnected the flue pipe and put a ladder up onto the roof. He carried a brick and a clothes line rope and sent the brick down to smash the glass disc he had siliconed in the chimney flue. Then he connected the flue pipe, lit, and set up the furnace. The customer was pissed but my Dad got paid in full! Furnaces have sensors that must detect a positive draft from the flue or they won't light. Looking up the chimney, it appeared clear. Pretty sneaky of my Dad! I'm not sure how you could protect yourself like that landscaping or hardscaping.

[@capitalandlawns5405]

For this coming plow season I am doing more contracts and getting payments up front. I like the word 'downposit'

[@Dirtmonkey]

CapitalandLawns I'm Polish so I get to make up my own wordage. :)

[@eliasrodriguez6366]

I have tre customers, don't want to pay what can I do

[@jamieworkman2153]

from the bottom of my heart...thank you so much for making these videos...my company is 2 weeks old with 17 years of past experience and I'm 35 but I'm binge watching and taking notes...Thank you so much again

[@ej7431]

I am a home owner. Before starting to build on my property I studied lien law in my state. As a result I took precautions and made the builder sign a lien waver and had him have all his subcontractors sign lien waivers as they did the work and I got a Final Affidavit of Payment from the builder. Well, it turns out the concrete contractor did not pay for the concrete, did the job, got paid by the builder, and left town without paying for the concrete. Concrete company came after me. He filed a lien but never took me to court. He knew I had lien waivers signed by both the contractor and the builder that all debts were paid, however, he place a lien against me but never took me to court. It has be over seven years now. Having these lien wavers from both the subcontractor and builder paid off or I would have had to pay twice for the concrete.

[@jessel8833]

Great video -- short and sweet, BUT drives home very key components to getting PAID, which is the name of the game. It forces clients to be honest, helps them and the contractor budget, but also keeps the contractor on point & organized, so they don't get in over their head. It keeps everyone on the same page, and everyone informed & happy.

[@Dirtmonkey]

Thanks Jesse!

[@acprimus631C]

My friend and mentor used to have a crane service doing dragline work, demo, setting culverts, stuff like that. He would bake pies for his delinquent customers, show up at the office and boom, he'd leave check in hand. He figured $5 of ingredients for a $20k bill wasn't bad. He was also lucky to have a lot of steady repeat customers who he knew were good to work for. Not all of us can be that lucky, though!

[@keithupton86ku]

acprimus631C Yup, steady, good customers are worth their weight in gold.

[@jonathanmcgregor6785]

Just found you man, great videos! Geek to Freak motivated me to start my own lawn service. Then I found Keith Kalfas and he helped me jump up my game. Now I found you and I believe you have the videos that'll help me jump myself to the next level. great videos, thanks for putting them out there

[@Dirtmonkey]

Thank you!

[@LandscapemanFL]

We will not even order products until the 50% deposit clears, Then when our company delivers and/or start of the project a additional 30%. Final 20% due on completion walk around. Works great.

[@Dirtmonkey]

Nice- good way of working!

[@ctn830]

Great for you. But is it fair for the customer? What if a bad contractor (and there are plenty) demands this? What protection does the customer have that contractor won't walk way with money?

[@j.jarvis7460]

Carm N that's where you ask for numbers of previous jobs he's done. A company with a name won't lie.

[@2000ViperGTSsubscribe]

I would never ever pay like this as a customer. I also own my own business too, but contractors are notoriously DIRTBAGS and I will never give a deposit until some work is done product is there.

[@Bgl-fz3cs]

TucoChannel 😂😂😂

[@colinmarkin9246]

Was asked by a friend, while having a beer, to level Field and back yard and remove trees ... HOW MUCH? With an attitude of wanting to help, I said I would charge time and materials and shared what my hourly rates are. He asked again "How much to level yard" I said $3,000. I quickly noticed, that to level and mow lawn in the future, sod should be tilled to prevent the need for buying top soil. That was the beginning. My bad for not catching this sooner, tilling would add to the cost of the project... The job went on and on starting with him asking how much to install sprinkler system. Roof drains, Rock gardens were my suggestion. I reminded him this is time and materials and gave him a GUESS what it would cost. Seemed I was always short by Thousands of dollars each time. When the Dust settled the project cost was over $20,000. I am blessed to have been paid in full and 'I think' ( VERY GREAT-FULLL)I am still friends with this old Buddy. The lesson is I should sit down WITH OUT A BEER,,,, and spend the time to write out a quote. (I had a gut feeling when he spoke of others who worked for him in the past and his displeasure.) LESSON: Once quoted I can ask for money up front, as you suggest, and I am sure the experience for both would be so much better. You're right. Follow THE GUT, as long as its coming from a good place. "Enjoy the Ride"... Colin Markin

[@jdbjoshua]

I like to try to have my employees or subcontractor stay on the site until I collect that way if the customer has any excuse like there's a minute thing that they wanted finished they can't pay me until it's done we're still there we take care of it we collect , there's also something about when we've done a really good job it's hard for the customer to look at the guys who actually did the work in the face and say their unhappy about something

[@AshleyNdukwu]

this type of videos needed to be out ten years ago in Texas the construction market is ridiculous

[@Dirtmonkey]

Thanks for sharing.

[@tracyjamestavares3255]

Here in Ma. , we get 1/3 down 1/3 when ya show up 1/3 when finished

[@Dirtmonkey]

Good way of doing it!

[@MagicSpamDragon]

Tracy James Tavares i do the same 33% for product then when i begin 33% for labour i collect deposit last 34% which is weird but if I lose its only my personal profit products and workers are paid ive started contracting pavers only 3 years now and happily never met a problem :)

[@workingshlub8861]

we gotta pay into the HIC fund every 2 years to cover all the scam guys out there....mass guys know what im talking about.

[@johnfilmore7638]

I would have to be very trusting of a contractor, worked with them before, to pay anything before they show up. Give me a Bill of Materials from your supplier and I will pay their supplier in advance to deliver it to my property, dont show up until it's all delivered and you can start and finish the whole job. You need more materials, give me a list and I'll have it delivered. I'll divide it up by job, pay you per job completed, and a bonus for finishing touches.

[@AuMechanic]

Enjoyed your video. I'm a small manufacturer and I always get 50% up front, full payment Ex Works (before it leaves the factory), I have 2 corporates I do a lot of work for and it hard for them to pay on my build cycle due to their payment system to 100s of contractors. In that case I get a signature on the line on delivery stating clearly that "all goods remain the property of my business until payment is made in full" which gives me the ability to get a legal judgment to recover equipment in case of non payment for any reason.As all pay 50% that covers any labour not paid for on full amount. 25 yrs in the motor trade as a mechanic before that taught me that trust is not a word that belongs in any business transactions no matter who its with, business is business, you don't get paid you go out of business. Cheers.

[@Autism_Forever]

I have been on the other side of the story. Hired a landscaping company through Amazon Home Services to mow the lawn and remove the weeds, both of which were really tall, up to 12 inches high. Yard is a bit over 0.5 acre separated in two by a creek, which has a bridge going across it. Gave the contractors link to Google Maps where they could see the exact size of the yard, as well as some pictures of the yard, and exact job description. Received a quote from the contractors. Guys came 7 hours before their scheduled appointment time and were aimlessly wandering on the property, basically trespassing. We told them to come at the scheduled time. At this point, they told us that the job will be twice the quote amount and that they cannot mow behind the creek because their mower will not go there. After that they started to literally whine (I am not exaggerating) about how hard their life and their work is. We told them that they were fired, and they looked really surprised. Took some effort to escort them off the property. Next weekend, we took out our little 18" hand mower and our tiny weed wacker, spent a few hours, and got the job done by ourselves. Can't say that it was easy; we would prefer professionals to do it; but at least we did not have to deal with the nonsense.

[@Dirtmonkey]

Interesting! Thanks for sharing. It's not as easy as it should be to do find the right kind of people to get this stuff done.

[@hockeydad6211]

Anna Gray You were pretty harsh. Sounds like these guys just wanted to get a first hand look at the job. Sure "technically" they were trespassing, but common sense should prevail, their intentioned no harm. At that point they had every right to renegotiate the agreement, and you had every right to back out, which you did. I guess the lesson here is, if you are going to hire someone to do a job ( landscaping, construction, repairs, etc) have them look at the job on site, and negotiate at that time.

[@Workin1_az]

You are a stupid, ignorant, and self entitled customer. People like you should be banned from being able to use professional services and you should have to do everything yourself.

[@GuessWho-uc5uq]

@@hockeydad6211 Exactly. An overhead picture from google maps doesn't always show the whole picture(no pun intended). Sometimes things can change when you get to a job site and see it firsthand.

[@mad-maxx2211]

22 years in framing ,drywall ,and drywall finishing and paint. And I have never been burned. Thank good. Never made up a contract. I had to wait a few days a couple times but never not been paid. But your right. Gatta read the red flags from the beginning.

[@mathewkelley7885]

was screwed by a lady who wanted a stone wall. got half up from 25 percent at start. had to go to court for the rest. Judge up held my price. I do contracts that the home owner must sign. gives materials labor and time frame, provided down payment and fee is paid before work. always get notary to sign it.

[@tylerguynes3157]

I'm 16 and i want to be a general contractor and your videos are very helpful as of right now I'm working under a contractor and also learning alot from him first hand

[@Dirtmonkey]

That's awesome Tyler, thank you for watching !

[@ChunkyMonkaayyy]

It's so weird. You can do a job worth $1,000 for family/friends, not charge them, and it's "gee thanks". I'm lucky to get a plate of cookies... However if you gave them $1,000 cash, they'd think it was most amazing thing to happen. It'd just blow their mind. In other words it's just not worth working for free unless it's for someone who truly appreciates it. I also make family/friends get estimates now. They need to know I'm giving them a good deal so they can't hold it over my head later that they "gave me work".

[@paultubbs3510]

Hugh Jafro Bro, some people I don't really charge. No surcharge on mat, service fee is gas money, 30+ man hours in for a 5$ pizza split 4 ways (true story). Helping them better myself, having favors I can call in are more valuable at times

[@samsen201]

Yes but you can more than easily, (As is the common practice of market) to inflate a $45.26 job as $1000 and no one reacts to the action! So think for yourself what 1000 dollar are you talking about first. A thousand dollar cash , is a genuine thousand dollar and bank is here to prove it! Then even with a true thousand dollar gift work you can get things in life that no money can buy you. If you don't understand me, then just wait and time & life will show you that or for short memory ones, please try to understand why people pay Millions of dollars to charities!

[@henryhernandez1520]

Exactly!!!

[@sirraymondluxuryyacht8131]

Good point. In the early 2000's I retrieved drawings/files from my cousin's hard drive after his computer crashed. He was a newly qualified architect. I wasn't going to charge him and I said "It's ok. It's only time' - He looked me right in the eye (only one because I have a lazy eye) and told me 'Never assume your time is worthless. If you charge nothing, people will think your work/time is WORTH nothing!' - Then he handed me 300 euros - That's at least twice what I would have wanted to charged him. I always remember that as great advice! Psychologically, we all appreciate things more when we pay a lot of money for them. There are some people ('true' friends) who will always insist on paying you and even pay more than you ask - A real friend will never expect stuff for free - they will respect your time/work

[@PrecisionCSGO]

Sir Raymond LuxuryYacht agreed, thanks for sharing that

[@Russellm0704]

Not in the Landscaping/Hardscaping business like most people here. But, I come here to here your business advice which is helpful. I run a delivery dry cleaning business and have had to change my system completely. I will not even consider picking up a new customers clothes until I have their credit card stored on file. It cuts out a lot of crap. I know a potential customer is not serious until they provide payment info.

[@jayphillips4058]

I work for private homeowners almost exclusively, 90%+ is T&M. I'm a one-guy operation with an occasional helper, and leave the bigger commercial/contractor jobs to bigger outfits. Haven't had any bad experiences, but only a few years in business. Worked extensively in the construction industry prior to that, and got a feel for problem customers. I don't have a problem walking away from something I think would pay well...if they paid. Often people who try and stiff a guy are also twitchy up front and a royal PITA to deal with project-wise; people who are pleased often refer me work to like individuals. Good customers pay the same rate as bad ones, and I guess you know which we'd all rather work for.

[@Dirtmonkey]

Yep= Go with your gut!

[@andygullion5182]

I agree 100 percent. Liens work. Deposits work. Collecting the second you are done works.

[@kangarafarmer6552]

Did a job for family at a low rate for contract land clearing , my brother picked up my dozer took it to the job I did 137 hours and he returned my dozer then billed me the exact amount for cartage as the bill for the dozer work . The cartage bill was $85 per km for 160 km ( both ways ) had to go to court where a judge ruled that the cartage was anon standard of the industry and a clear way of avoiding paying a debt, he had already filled for bankruptcy for that business and started up under a new company and I had to join the list of creditors who missed out on being paid , all I can say is it wrecked our family life as i haven't spoke t any family member in 15 years

[@cupofjotv8195]

Sad, in Russia where I'm from just from hearing the news of what your family member did no family member would associate with him and nobody in the region would do buisness with him until he set everything straight

[@SuperKp1986]

That's sad your brother did that

[@bumleggprods2862]

i had a bad feeling about a customer once so i did what you said about upping my down payment and the guy paid everything with no problems what so ever, I also had a really friendly customer who i "trusted" throughout the whole project and she ended up burning me.. DON'T LET YOUR GUARD DOWN!!!

[@CedarSpringsDecks]

This past summer a fence company quoted all his fence jobs stupid cheap(as in too good to be true cheap) He took a 25% deposit upfront and then would disappear. He did this all summer and skipped town. Most customers understood our higher pricing but some wanted the same price as the scammer. It was very difficult trying to get them to understand why we could not install the fence for the same price. As if we are the ones ripping them off.

[@topnotchtreeservice9808]

It amazes me how many people don't understand the concept of "you get you pay for." In this case, the people clearly don't understand a contractor's cost of doing business, but it is that same mentality that causes customers to simply shop prices (blindly for that matter) opposed to shopping contractors. There has been a couple times where the customer will hire the dirt cheap guy to do their tree work and end up having us come back when the cheap guys get half way in (or up a big tree) and find they are in over their head. I have seen some horrible pruning jobs we have lost to cheaper contractors too where their trees were just butchered. I'm sure this type of thing happens even more with building projects opposed to tree work. I find it impossible to feel bad for the cheap homeowner who gets burned for trying to get something done for nothing.

[@topnotchtreeservice9808]

No, Bethel Maine. I'm sure there are many Top Notch Tree Services around the country; it's kind of a catchy name for a tree company

[@malomalo8695]

First off Stanley before I tell of how one person kept from getting ripped off from a scheming client I wanted to thank you for all your videos. After retiring a couple of months ago I started some long overdue projects on my home and that's where I ran into one of your videos dealing with retaining walls. Other home projects and I was googling certain terms and your videos would pop up again and again. Very helpful sound advice ..glad I've found you. So my story (heard it about 40 years ago) is about a brick mason who while working on a chimney would, at times, if he had a gut feeling there would be a problem with payment ..he would insert a sheet of glass inside the fireplace, out of reach. If after job completion, and if the customer refused to pay ...he would tell them (while holding up a key, any key, a chisel and hammer) they would have to pay what was owed before he "unlocked" the chimney. I don't know how many clients he had to do this with but the client I heard about wouldn't pay up and didn't believe him and so quickly lit a fire. The chimney was blocked even after checking the damper. After dousing the flames, house filled with smoke the guy had no problem making a fast trip to the bank and returning with the cash. After being paid, the brick mason went to his truck, put the key and tools away came back with a broom, climbed up to the roof top, made his way to the chimney, inserted broomstick and smashed the glass. Climbed down, walked to his truck and drove off.

[@B.r.i.a.n.1]

Amen....unfortunately most of us learn the hard way. Lol. Always get a down payment if the job permits, a customer needs to have skin in the game. Can't trust anyone these days.

[@wolfsdenenterprisesllc9539]

In Fire/EMS/LEO world we have a saying... "If it's NOT IN WRITING it didn't happen" ... Having a set of terms that the contractee signs and given a copy of helps. Stipulating somewhere in it that "these terms may be modified in writing and authorized by both parties" allows for some flexibility. Having basic terms like you describe in this as a boiler plate should be standard practice. Having two or three part forms with the terms and conditions printed on the back keeps all the info together so they can't say "oh I never got your terms paper" or something. Having a statement (IMO) also that says "Work will be done in accordance to customary business practices" allows for some leeway if you do something a tad different than another local contractor but is acceptable business practice nationwide.... Great info !!!

[@josuesilva286]

I work with my dad and my dad doesn't like arguments some lady didn't pay us after the job was finished even though we do great work ...

[@josuesilva286]

Bad contractors that makes us all look bad ..a bad contractor screwed a lady over so she screwed us after we had finished the job ..we never go paid for a kitchen remodel

[@Dirtmonkey]

Man that susks Sorry to hear about that!

[@josuesilva286]

But you are an inspiration to me thank you for your videos just know that you are helping.

[@MJ-pt4lk]

Thank you Sir for your very valuable insights, I am considering entering the Earth Moving business and the lessons and advise you post here are so great, many of these you have learned thru hard graft and steep curves obviously. I am based in Melbourne Australia and the very same principles apply here no doubt....Again thank you for you advise and please keep them coming. More power to you my friend : )

[@Dirtmonkey]

Sounds like you have the right mindset, I wish you the best of luck!

[@XtremeGuy-FL]

I have worked in the loan world for a long time , wouldn't it be prudent to agree to sign a lien waiver only after the funds have cleared ? I think this would be the best way to protect yourself and have good recourse against the contractor or homeowner ...

[@synewparadigm]

We are builders, not lawyers and we usually learn after getting burn.

[@joeymerrell8585]

“Wouldn’t be prudent”- George H.W. Bush

[@hankkline7300]

Many contractors won't give you a check until you sign a lien waver. I write my lien waver so that it is only valid when accompanied with a canceled check.

[@michaelhunter5056]

Thankfully I am a small company, just me out of Maplewood and have not had that happen but I have had to wait two to three weeks for payments. Because I trust that people will do the right thing.

[@gregorysampson8759]

in Ohio law says 10 percent down max. then progress payments. I guess showing up is progress so maybe I'll try your method. I get stiffed once or twice a year, and I never forget it. seems contractors get cheated by homeowners more than vica versa.

[@Dirtmonkey]

Thanks for sharing, good luck.

[@russwhite3952]

im from ohio inever herd of this 10 percent rule its whatever i say or i dont start

[@pyrr]

You're spot-on about having customers pay for materials. The *only* job I ever ran where I didn't collect 100% of my bill was a particular guy who I should've known better than to work for. He showed some signs of being demanding at the start, even bragged about sending other folks packing without pay because he didn't like the quality of their work. He actually tried to send me packing without being paid partway through the job, complaining about what his dirt driveway looked like when it was barely even half-graded and I had some parts ripped-up for restructuring & drainage. I had to get a bit forceful with him to complete my job, which involved finishing it with a layer of recycled asphalt. Of course, he found fault with the recycled asphalt and refused to pay, rather than deal with him anymore, I just took payment for services rendered, blacklisted him, spread the word to colleagues about him, and called it good. If only I'd had him pay for materials, I would've collected on the entire project on that, too.

[@pyrr]

Clarification: I took payment for services rendered, ate the bill for the materials, which were relatively inexpensive. Lesson learned, and it could've been worse.

[@Dirtmonkey]

+pyrr I just had that guy- I did the demo on his house called "Caught on Tape" video. He was very difficult and is still being that way.

[@unclegusgarage2086]

No more checks on 1st cuts for me. Had a customer set me up real good this month with an overgrown lawn. 2 hours of work, check bounced, no pay. PLUS, my bank charged me for the returned check. Lesson learned. Never again.

[@cwc8979]

Uncle Gus Lawn Service That sucks....did you report them for writing bad checks?

[@Dirtmonkey]

Uncle Gus Lawn Service UGH. At least you have a place to dump all your lawn clippings from now on. :)

[@unclegusgarage2086]

OTC I'm dealing with it, but not going overboard.

[@unclegusgarage2086]

Stanley Genadek Landscape and Construction Business Pro Nice idea. But believe it or not, this is in a pretty nice gated community. So I would have never expected the "bounce". The classic "don't judge a book...." definitely applies.

[@mikeguitar9769]

Are you saying the bank charges fees to both the payer and the payee if a check bounces? What lesson is learned? What is never again?

[@nathanhill2369]

A guy called me from a CL ad, said he wanted his rear entry door replaced and the front door fixed so there would be no drag. Showed up for the estimate, landed the job, and scheduled to start 1 week later. Agreed to pay cost of materials and 50% up front 50% upon completion. Arrived day 1 got cash in hand, and did all demolition work and had the door installed by the time he arrived home from work. Was super happy with it and decided all of a sudden he wanted to full out replace the front door and install screen doors on both. Adjusted all documentation accordingly and proceeded to execute the work. Job was supposed to be 2 days and ended up going back and forth for almost 3 weeks because he kept changing his mind. From style of doors to the color of paint. By the time it was all said and done I had replaced both doors, installed screen doors on both, and re-finished the garage entry door. All went smooth on the customers side agreeing to pay what was fair at each time of adjustment to the contract. Simultaneously, had hired 2 different "painters" to help but f*ed it up more than they helped, so I'm out labor expenses, no biggie...went back about 3 days at the end to fix the paint and the customer said he was happy with it, job done, time to collect the remainder of the balance (which was only about 10 percent at this point) says he wont pay me because I didnt fix his smart lock on the front door. So to conclude I was denied being paid because he bought a faulty lock. I live over an hour away from the guy and tell him I'm not coming all the way back for a lock that doesn't work. He's pissed because I won't just fix it and puts him in a "bad position" with work scheduling to exchange it. I have a legal contract with the guy but I won't end up pursuing it because I'll end up paying more to collect than the amount I'm owed. On to the next project and will be sticking to my guns on the way I do collections which have always been very similar to what's explained in this video. The bad part is this guy is career military amd I gave him a military discount in an attempt to land more jobs with him at rental homes he owns. Can't trust anyone

[@MyOLD36chevy]

I was told by friend Steve that he welded about 1/2 mile or more of 6'' barred steal pipe main line . Now To be clear all the welding rod belonged to Steve until he was paid in full. Now the farmer had his son welding some of the joints and when the line was tested some of welds leaked. The farmer told my Steve to fix the welds that leaked but Steve said those are not my welds mine I mark my welds a stamp ( like a brand ) those are your sons welds. The farmer had to pay the full price for all of the welds that had to be repaired By Steve. When the job was finished the farmer didn't have the money so Steve said he would wait until harvest. A short time later the farmer harvested his crop and no check for Steve so Steve Went out and started grinding his welds out. The farmer came over to where Steve was grinding on the pipe welds threatening to call the police. Steve said I have permission to be here from the owner of the land and I am removing my welding rod until I am paid in full. The farmer started for the bank to get his money and Steve said you better get plenty of money because I will be removing my rod until I am paid! This was 20 or 30 years ago at around $80.00 dollars a joint.

[@chacefreier8441]

I was doing a flooring job for a small regional department store, but I was hired by the general contractor. I did one store up north and had to wait 90 days for my check. In that time the had me do a second store in Western Wi, both jobs we completed on time on budget with no issues, 90 days came and went with no money. I decided to call the general contractor and i found out what was going on, he explained to me that the money was delayed over a roof trusses issue something I have nothing to do with. Months later no money the only thing I received was a bankruptcy notice for $65000!

[@Dirtmonkey]

That's awful Chace, sorry to hear that !

[@pyrr]

My secret to being paid in full for every other job is that I'd use the threat of a real property lien if someone started trying to get out of the debt. I genuinely wanted to work with folks, I realize that some projects are not exactly elective and can be a huge unexpected cost, things such as septic systems or severe erosion aren't things most folks can just pay cash money for. I'd arrange payment plans (with interest, of course), but as soon as folks went delinquent and started blowing me off, I'd just gently let them know that I wasn't going to waste my time bugging them, I'd just file a lien and they could pay me when they're able, even if that's years down the road when they want to sell their home. I had two jobs that stood out as being particularly obnoxious in that regard. One was a septic upgrade so a fellow could get his carriage house fully-plumbed so he could live there while renting-out the main home. Times were tough for him, I accommodated they guy as much as I could, and figured as long as he was making progress on the debt, it was no hardship for me to run an account for him. When he went 3 months delinquent, I brought-up the topic of filing a lien to make sure I'd get paid, he paid-off the last few hundred bucks he owed immediately. Another was a snow-clearing job which took dozens of hours to open a nearly 3/4 mile-long driveway after a 9' snowfall. After the snow was cleared, he started whining about his engineering business doing poorly, so I worked-out a payment plan for him as well. Months later when it was summer and the huge heaps of snow I piled were mostly melted away, he started getting difficult, blowing-off his monthly payments. I guess his wife didn't like the prospect of having a lien placed on their home, they came-up with the remaining balance almost immediately. I think the reason this approach is so effective is that, at some level, people think if they drag their feet and fool around long enough, the contractor will just give-up and go away, all debts dismissed & forgotten, or that they could bargain to pay less as is possible with unsecured debt that gets sent to collections. Liens are something that take no effort to maintain and they don't go away, they secure the debt by clouding the title to the real property which has been repaired or improved until they're paid-off.

[@Dirtmonkey]

+pyrr A lien must be filed within in 120 days of the work being completed or it isn't valid. Be careful. I also have used liens to get paid. In Minnesota we must also file a pre-lien notice before work even begins. I include this directly on my proposals.

[@pyrr]

Indeed-- It's fortunate the folks I had to deal with started going into default quickly and then really responded well to the threat of a lien. I didn't do much research or get the proper paperwork to actually file a lien, I didn't really want to go that route, it's unpleasant for everyone. Funny thing with my time in the excavating business, the three messes I related here are the only real problems I had. It was more of a problem when folks would overpay me, wanting to pay more than they owed to avoid writing more checks for the hourly jobs. My books had more entries for money/time owed to customers than my accounts receivable. I know, that's a problem most folks would probably love to have. The situation you mentioned with the GC absconding and leaving the customer holding the bag is just ugly & messy. I'm glad I never found myself in the middle of that sort of situation.

[@marianwhit]

Helpful.

[@TheSalfordCabbie]

I have a big job starting next week. Told customer what materials to order and broke the work down to three phases and % payment due at end of each stage 40/35/25. I don't anticipate any problems but I'm comfortable with the numbers and he is to. Good channel btw 👍 from England

[@Taviddude]

Carry Non-Payment insurance and let them argue with insurance company lawyers over it. So long as your work is good, and and contract solid. They'll pay EVERYTIME. Never even had to follow through a claim.

[@sirraymondluxuryyacht8131]

That's great advice!

[@theRolling2010]

How can I get that?

[@rodw]

Sad to say that there are crooked people on both sides of this problem. My dad hired a guy, kind of a jack of all trades to redo our roof. Around 1988. He asked for half down like normal,mainly for the materials, hot tar, little white rocks. My dad and I had helped strip off the old roof I think, hard to remember. The guy had brought references from other people in our neighborhood. After a day n half he never showed up and my dad and I had to do the work because we didn't have the money to hire anyone else. I have no idea on who gets screwed more, workers or homeowners? At least contractors for the most part know where the person lives. To bad there's not more people like you and Mike Holmes. God Bless you Stan

[@Dirtmonkey]

Thank you Rodney, really appreciate the nice comments !

[@blakec6631]

Great videos Stanley! Im a masory contractor in MD and unfortunately we have a home improvement law that states 1/3 deposit maximum. Im not sure about other states but its a bit of a pain in the ass.

[@atypical_moto]

Blake C In CA it's 10% of contract up to $1000. So if it's a million dollar contract, it's still $1000 down max. What he's explaining in this video is not that we should take Payment up front but that we shouldn't release liability of payment to the Prime contractor or Home owner until the check clears.

[@tombrady8324]

Blake C if its a million dollar contract at 10% down that's 100,000 down. not 1000 check your math. you can't estimate a price with your calculator

[@blakec6631]

tom brady check the original post bro...kenny roger said that. Not me

[@atypical_moto]

tom brady The law is no more than 10% of total contract up to and not to exceed $1000 down payment. So with a $1 million job, you still can only ask for the maximum of $1000 down.

[@blakec6631]

Kenny Rodger The law in Maryland is 1/3 deposit upon signing the contract. That is 1/3 of the total project cost. No smart contractor would use his hard earned money to pay for materials on a 1 million dollar contract with only $1000 from the customer

[@swimbait1]

Have had good luck so far collecting half down on landscape jobs but have had some customers that won’t pay their bill for mowing. I have one right now and she’s getting the final notice this week, no pay and it’s off to collections.

[@zekeisme1]

in wa state i am a electrician and we can just put a lien on there house if they dont pay

[@godman5043]

fritz - FL has the same but it can literally be years to collect, or never. Contract could state that interest accrues if it comes to that. At least it would make it worthwhile.

[@workingshlub8861]

i am a contractor in mass..anything over 1,000$ we must have a written contract and we can only ask for 1/3 down payment...not an easy state to do business in.

[@9873459872134234]

Same in IL

[@disrespectz]

Nc allows contractor liens as well

[@johnfilmore7638]

Put in Estimate or Contract at the bottom "Net 30, 5%" Payment is due in 30 days, interest is imputed at 5% a month on balances.

[@ZimaletaMotors]

I love watching your videos good job, I am just getting started with landscaping and I can use as much advice as possible, I will watch more of your videos

[@fatnstupidstreams5959]

I'm just starting my landscape business and I gave a 28$ fee for a 4 hour job contract was signed and the guy said I'll go to the bank I waited 6 hours for him to get back he got back and asked me why I was there I replied I'm waiting for my money he said your not getting it long story shot I called the sheriffs office 4 squad cars showed I got 50 dollars as a late payment fee he dropped me of course but his neighbor hired me for double the amount so happy ending

[@Lykeamugg]

What type of contract did you have?

[@crazykev6491]

$28 for 4 hours of work? What did you do?

[@fatnstupidstreams5959]

@@crazykev6491 umm if I remember correctly, I cut the grass, bagged leafs, blew the driveway and cleared storm debris. I was 15 so I was an idiot.

[@crazykev6491]

@@fatnstupidstreams5959 live & learn. We’ve all been there. $28 when your 15 feels like $1000. 😂.

[@blakelunsford]

I'm in major auto repair. The same rules apply even though I have a "perceived" mechanics possessory lien. I don't do any work for new customers over 1-200 bucks without a sig. I don't do any work for anyone of a major nature without a sig. The 2 or 3 times a problem was settled in a courtroom I prevailed without hesitation due to that policy. And I don't know anyone in my marketplace who follows that policy. Business is business and Mr. Genadek has this issue nailed. Good video.

[@workingshlub8861]

good advice...i have a few rentals and i still go every month in person and collect the rents. 99% of the time no problems and they have it...cant bullshit me with excuses when they know i am coming.

[@peterwashington4829]

I finally grew that beard that I've been working on after listening to this man talk!! In other words, my testosterone just doubled!! This is a Mans Man!! This is my approach to life!! Now I see why you have so many peoples respect!! You're spitting nothing but facts!!

[@Dirtmonkey]

Thanks Peter !

[@donaldeslick8441]

I had a landscape contractor bill me and then I found out that he had stolen 3 triaxle loads of material that he dug out from my foundation. His lawyer contacted me and I provided him with pictures that my neighbors had taken and a reverse bill with legal charges of double what his lawyer had demanded for his hourly charges. I won.

[@stanpladson3858]

Yes we did a project for a friend’s brother last year. Never did have a contract, just shake of the hand and a very small deposit. He still owes 90% of the job cost a year later. End of story, always have a contract and a lien plan. Maybe even pre lien. No matter who the jobs for.

[@Dirtmonkey]

Sorry to hear that Stan, thanks for watching

[@50Druiden]

So similar to David below I also left a offer for fixing some bad pavement in his driveway for about 5000 SEK (approx 650usd) and when we started lift some of those "bricks" I saw that the underlaying material was just really rich dirt. And told the guy that those who installed it just removed the grass and made it level so it would soon be the same issue again. I gave him a new offer for redoing the whole thing for 25000 SEK (approx 3200usd) and he accepted after we was done I walked him trough our process and gave him the papers of what we installed etc and he was very pleased with the job. In Sweden we dont use "checks" but send "Faktura" (invoice?) So he gets 30 days to pay. And when payment didnt come I called him and he refused to pay. I asked if there was any issues with what we done or something that didnt meet his expactations. He said the job was done great and hes really pleased but that we agreed on 5000SEK not 25000SEK. I tried make him understand that those were 2 very different jobs.. Long story short I got 8000SEK. Couldve probably brought him to court but was afraid of a even worse loss. Greetings from Sweden

[@mydigitalditch]

Robkhalifa salute

[@rowangratz6146]

Just started my business: had the client pay up front for materials cost. Hope to collect easily on the balance when the job is done. Will see , thanks for the video tips

[@Dirtmonkey]

Good luck!

[@alantaylor6691]

How is your business going Rowan?

[@prestontaylor1850]

had a guy tell me his neighbor would hall off the rock with his dump trailer.. so I saved him money.. come to find out his neighbor wasn't okay with that. buy this time the job was done and he said he would not pay me until I moved all the rock away. fortunately I had a friend who owed me a solid n he came n picked up the rock for the cost of the dump fee and gas. it was a close call

[@alfriedar]

man because of your sharing all of this .. I can have a better life and a better functioning business... even though I am tiny..

[@Comicsluvr]

This has been a struggle for as long as there have been workers and customers. I had a roof done years ago. Roofer wanted a third down for materials and I felt that was fair. Said it was a 4 or 5 day job. On day 5 the guy says he needs to pay his crew for the week even though he's not done. I told him that was HIS worry. He said 4-5 days and now it's day 5 and not done. Same thing with vinyl siding. Sure, contractors getting screwed is not good but you can't sit there and pretend that ALL contractors are honest either. If you do, I'll link in some vids from The Home Inspector showing shitty work on really expensive homes.

[@channa1955]

Oh He must know my Contractor!.Maybe they're Bros!.Hired him to do a basic vinyl floor and some drywall,been 3 weeks now,still not done.When he does show up ,he works 2 or 3 hours maybe.I had to postpone starting a new job because my office isn't nearly finished,so now it's costing me even more money.

[@scottjennings2838]

I had a customer last week tell me that he hadnt agreed to let me trim the bushes in the back yard (even though the quote included this service) he told me this when? Yes, after I trimmed them {taxus hedges 15 ft tall around the entire property - 170 linear ft} he told me that I actually didnt even trim them and he knows this because he and his wife trimmed them before I arrived (not true) I told him that I would repossess the new bushes, edging stones, and decorative gravel in the front yard if he didnt pay me... he paid - front yard value $3400ish amount he owed for back yard trimming $954

[@nofindtime5315]

Credit card chargebacks! I got taken for 26k last year after the job was done. Still fighting it.

[@cannibal23]

got screwed for 4k on that before. Not a contractor but think about this for an idea. at the end of the job get the customer to sign off an inspection sheet or even a survey that shows they are happy with the job. take photos of the work or a video of the customer and you inspecting the work and being happy. cant claim its not delivered or you didnt show and not satisfactory product / work if they are on record saying they are happy. this is a brutal way to loose money.

[@rondangelo6702]

It's is this very reason I am launching a new website for contractors, as well as starting my own vlog there are very few contractors I follow on KZbin, but you are one of them.👍 I hope we can calibrate in the future on some shop Talk,

[@hendrikjurgens7021]

As a lawyer I am constantly fighting for my clients to get the last 20% of payments after the work is done. They either come late or never.

[@crickmay100]

Here in Belgium the same and the law doesn't help in any way to protect the contractors ,only years of lawsuit and even if you win ,you can't receive interest from a private person by law... After 22 years of business it gets year by year worse....

[@chrisburnsed6349]

This is an honest to god true story. I have a neighbor a few houses down that had a landscape contractor do a large job in his front yard. Same Scenario. Neighbor refused to pay when they finished up. The contractor put a gun in the home owners face and held it there until his crew ripped out the entire project with a skid steer. I couldn’t believe what I was seeing.

[@tyclark8162]

I rarely had folks not pay for price bid, yet had a few that pushed for services not agreed upon beforehand. Most honest were those living on lower income. The worst folks to collect from were doctors n lawyers n other rich people. I would in turn visit with other contractors n we had a long list of folks Not to work for without money paid up front. Lost some customers yes, but less headaches n maintained a better relationship with honest home owners. I would add little things they didn't expect n never had a complaint ever. Sometimes when you give a bid n your gut feelings are throwing up red flags, it's time to go highest bid n leave. I seldom do work for family n close friends as they automatically assume you'll work wayyy cheaper than others. An the fact it almost always leaves friendships n family placed in hard positions. Yes, some friends n others understand you too have bills if not moreso than they may. Some jobs go south really fast, finding a solution ASAP n keeping the customer in the loop helps at times. They generally go with lowest bids n almost always have court costs or hiring us to fix problems. Not because we are so awesome, but try to treat them as our best customers. I have found that neighbors to customers can start problems themselves n influence their attitude towards jobs. I have left several jobs, an stated that your neighbors have all the right ways things should be done. After which most came begging to have us return n their neighbors kept their opinions n even had them hire us when job was done. So many factors that most folks neverrr hear or ever realized what happens at times. Managing people n employees an their problems can be overwhelming at times. Yet I have one Golden Rule,,, If a employee becomes a hazard to other crews or threatens to leave job. Never Ever talk them out of leaving your crew. One bad attitude can generate ill feelings with entire crews, whom all had gotten along before said employee came along. If they want to quit, let them quit. If not, they almost always cause trouble amongst others n even customers pick up on their attitudes as well. I'd rather have a happy employee than one who brings down others, be selective in hiring. It really does work. More $$$ can bring crews back to life, so share some of your profits IMHO regularly, an let them know you have their backs.

[@rondangelo6702]

What's up Stanely, I know this is an older episode but just the same it's important content that start-up companies need to watch, even my self after being in business for twenty years, still make mistakes with contractors and over-trusting people because I always want to do the right thing by people. But truth be told when there is money involved, people will lie cheat and steal very unfortunate, so protect your self

[@Dirtmonkey]

Good advice Ron, thank you for viewing !

[@victor4071]

on a subdivicion a agreed with a homeowner to clean up a retention pond for 500 dls. but when i finish the job, the homeowner send me to the HOA president who tellsme that 500 was to much this retention pond and it was a common area but he was responsible every year to pay for for it and he ussualy paid 60 (the guy before was tricked to), so the guy finally make me a check for 150 cause i spend 15 hours... and his argument was that the neigbor's wife look trhu the window several times and she didn't thouth that i was working that hard (95 degress outside) and the pastor (the HOA president) thougth it was fair to pay me 10 dls. an hour like the guys on those gas stations, i argue for 30 minutes but clearly the guy take advantage of me... that was 7 years ago... i stll learning every day one way or another....:(

[@keithupton86ku]

Victor Garcia An actual pastor screwed you over? Damn, that is such a risk he took. If it was me and I had the money, then there would be 100 people outside of his church with picket signs until he paid. As well as replacing everything that was cleaned out of the pond.

[@StoneE4]

Pastors do quite a bit of screwing... They screw people out of their money all the time and some literally screw children.

[@erictorres4302]

9 yrs ago restarting landscape bus I dug 4 fruit trees each 2 weeks for 8 weeks on culdesac for 60$ and cut half an acre out excess dirt in green recycle can then daughter tried to get me I charged 300 $ for day n half work she said no I cut my loss I'm 80% more effective thank u on lesson w video

[@Christian-Rankin]

When you talk about getting half down to avoid getting scammed, it directly contradicts what you said in your three ways contractors scam video. Unless I'm crazy you said that anyone who needs half down is not financially stable and doesn't have any credit so you shouldn't trust them. I'm paraphrasing obviously but that's what I got out of it.

[@russwhite3952]

yip thats what he said ididnt agree i figured it would change after a while lol

[@russwhite3952]

yip he did

[@lawrenceschofield618]

Love your videos - great information! Grew up in the construction industry - concrete formwork - in the Boston area in both residential and commercial construction.

[@yoshi9356]

January 27/ 2014 I just got hire for a new job and had to take a two week long course by this company because I got experience driving semis. So day one of this course my house burn I drove for and hour back to my house to see and get the insurance started. So I found a contractor because all the other contractor didn’t want to build he started the project because it’s in the country not in town and during the project i had to tell the contractor about the roof he had to add a valley or the water will not just pool up against the wall he didn’t like my windows because there were 20k more then what he wanted and dry wall I could don the job my self blind folded. Then the insurance start to drag there feet the the builder quit two month after he suppose have the house finish and left me to finish 1/4 of my own house I’m still paying for all the material cost. So I pass all my inspection because I pull most of the permits myself, I now live in it. Just like you said I had a gut feeling and I didn’t fallow true whit the feeling.

[@williamevans9490]

I have not had much dealings with homowners or residential construction I’ve dealt more with towns and industrial or commercial I’m not a contractor but I’ve worked for them and my dad is a comercial contractor with about 30 years under his belt

[@equipt4sound]

A dead beat that is somewhat in a protected SENIOR class can really be tricky, you really have to be careful how you proceed. They or their family can pull the OLD off their medication on you and go all NON FAULT on your ass. Hears an idea for seniors and non senior dead beats alike. Putting up "sale by owner" signs around the dead beats neighborhood with their street address in the blank box and the note "debtor sale" with amount owed provides the community and other area contractors with a heads up for caution about accepting solicited jobs with the same dead beat. With luck, realtors in the area will see the sign and inquire with their services mentioning the sign they saw and the amount. The dead beat will hopefully be able to make the connection to you and will make an effort to take down the signs which, of course, will quickly be replaced. Eventually, the dead beat will hopefully initiate communication to you demanding you stop but you will of course not know what the hell they are talking about. You will have clear memory of the dept the dead beat owes and will bring their payment back up at this point in the conversation adding that the amount is now larger due to the extra expenses you are incurring due to their INABILITY TO PAY. This is very important you use those exact words, INABILITY TO PAY. They will want to know how much that debt is and why. The extra cost is for the added expense of the buy owner signs you are out of pocket. You will honestly explain it this way, because of their INABILITY TO PAY for the service they contracted and you provided, you have had to purchase additional equipment for that which was expended on their job and not replaced due to their INABILITY TO PAY, add there was no indication for you to foresee that they intended to contract you with an INABILITY TO PAY and you did not set out to contract for services that you had no intention of not being reimbursed for (so it will be clear that the senior wasn't receiving charity from a church group... more on that following.) In closing you say, until some payment is made cost will continue to grow as you will seek legal action in civil court to the maximum the court will allow, not for collection but deliberate intent to defraud services (which in some cases of fraud is 4 X the amount defrauded,) It takes a commitment to memory on your behalf but is pretty simple to remember once you have. It's a valid argument. However, before you go to this length, try collecting from the church the dead beat may attend. If the church cannot help pay the debt they maybe able to contact at family member to help. You even save this "poor" sole. This person could just be getting into that stage of life and need having it called out for attention by family or neighbors. Keep an eye for a source to get those buy owner signs cheap. I've found them in the dollar stores from time to time and will buy the lot.

[@eliasfree5105]

I am a residential/commercial mover. This story is of a repeat client. I had moved them from MA to VT without payment issues though plenty of PIA issues. A year later when deciding to move to a less rural area of VT I did not hesitate and took on a bigger scope of the job, packing the entire contents of her home and antique business, carefully packing thousands of fragile smalls. 8 days on the job, 2 tractor trailers transported, and everything unpacked perfectly without 1 single error. Staying within the exact quoted price. Since they were elderly, repeat customers I accepted payments via installments. Every check after the initial cash deposit bounced. After 2 attempts to collect on the debt, we are left to pursue small claims court. And filing criminal charges, as passing bad checks is a federal offense to the charge of grand larceny by check.

[@Dirtmonkey]

The criminal offense clause is interesting- I may need to use that at some point.

[@mikecowan5786]

haha he was walking out of the police station

[@Dirtmonkey]

Yep. It was also city hall where I get permits.

[@lamerdan]

EDINA = Every Day I Need Attention

[@anthonytosco802]

My Friend very true. Been in the trade for 19yrs and in business since 07, in business you need a big stomach and a sweet mouth but use that God given instinct. We adapted house call pro, we get electronic approvals. Electronic signatures before and after work, it has been a game changer. Just went through this w/ an ex military individual and didn't want to pay the 50% upfront. You have to be upfront. Transparent, and you deserve to get paid. Its not given its earned , may God bless all good honest contractors.

[@cameronnerdin9859]

check licenses.If the contractor is not licensed don;t do business with him. In my state, I become liable if I did work with an unlicensed contractor. I had a guy have me excavate a garage and retaining wall area. He had home owners pay him using american express but the ex wife took the card and charged the job. so he got paid. He skipped on me to Arizona could not find him. phones disconnected. Yup Went to home owner explained situation and man I felt horrific. So I did not have them pay me the 6k. Well about 2 yrs later the dirt bag comes walking into a restaurant that I was at. I kind of hid and waited till he went to the restroom. and cornered him in there. got his new phone number and plates. Explained that he and his wife had committed felonies. Wire fraud when they used the credit card. And now that I had him and his plate and drivers license number he had better pay me or I would pursue putting him and his ex in prison. Well he paid me monthly payments. I had him sign a contract and in the contract listed that this was not bankruptable because he had committed a crime federal wire transfer laws and had committed Larceny. Since the money he owed to me was not a dept but a repayment of a criminal act he could not declare it as a part of any bankruptcy. I sent him over the contract. He bauked at it but signed it because in my letter I gave him an affidavit from the home owners that they would cooperate with me to prosecute him to the full extent of the law. I then set up an account that he would go to my bank monthly give them a password and account number and he was required to deposit 500 a month for a year. He paid it off because my contract said any attempt to not pay it in full means he is continuing with his felonious activities. And that if he failed to make his payment on time the penalty was 500 dollars per month plus the principle and attorney fees. Never had a problem collecting.

[@Dirtmonkey]

CAMERON NERDIN that is awesome!!

[@cameronnerdin9859]

Yeah I dont put up with people stealing from me. It just pisses me off!

[@georgebetancourt7681]

Oh these stories make my blood boil. Has happened to me a few time and I kinda have to pull the crazy card. Even tho I’m harmless. I don’t do work for bad vibes at all! The other day I had a guy try to negotiate my job in half. He told me it’s better to work then not to work at all. I walked out of his house. I’m plenty busy and don’t need a particular job. Your advice give me a lot more knowledge on this situation

[@Dirtmonkey]

Awesome! Thanks for sharing that George 👍