Owed money from doing a job

Hubby works for his father's business but did a job as a nixer (i.e. evenings and over a Saturday and Sunday to accomodate this person), total price of job was €7000 and the person paid €1500 deposit upfront which would be standard enough. After the job was finished your man said something about going on hols and he'd settle up with him in 3 weeks time, 3 weeks are now past and hubby rang again this morning to hear him say it would be another 2 weeks and something about having trouble with his bank. Basically, we funded the money for this job out of our own pockets, anyone know where do we stand now? How can we get our €5,500 back??
Yours panicking
Moneypit

moneypit,

easy.. give him the 2 weeks but after that your hubby should threaten to take the windows back out !!!! keep calling around to the house, if he thinks ye're a soft touch, he'll keep putting you on the long finger.... keep annoying him, you'll get your money soon enough......

Thanks for the reply Legend. We will put the pressure on in two weeks time. Just would like to know what other form of recourse we have, if any? bar getting 20 heavies up to their house , seriously though I'm really worried your man won't pay up and we 'borrowed' that money from savings we have put aside for an extension we're building at the moment and will really need that money soon in order to finish.

did your dh supply an invoice for the work?
all goods remain the property of X untill paid for in full, i'm sure that the customer would have a hard time proving unreasonable action if the windows were removed, after all, he will have gotten about 5wks to pay the bill.

Write to them (use registered post) and let them know that you will be taking legal action if you don't receive your money within X days of receipt of this letter.

unfortunately if you are going to work in the black you will fall foul of these situations. You should have presented an estimate, have the property owner sign said estimate and agreement to commence works.
Sign off finished works and issue and invoice with a time limit for payment terms all above board and legal.
Because none of the above was completed whose to say what was agreed ,payment terms, VAT, guarantee and back up service.

The only recourse is to talk to the customer but if he is coy he will know that someone who works in the black is hardly in a position to dictate terms due to tax implications, registration and various other legal obligations.
Best to send him an invoice with payments terms, obligation to charge VAT of course included and i suspect that the customer would seek a written guarantee also.

Messy but hopefully a lesson learned, this is one job you may have to come clean on but you better not hope that the customer has evidence of previous nixers, would be a concern.

CCOVICH said:

Write to them (use registered post) and let them know that you will be taking legal action if you don't receive your money within X days of receipt of this letter.

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Is it possible to sell the debt to a factoring company for a % of the invoice total and let them sort it out threathen legal action?

Jaid

Keep ringing and keep calling - no more 2 or three week extensions. Do not in the slightest feel embarrassed or under pressure as they are the ones who have put you in this position. I would genuinely wield the threat of taking the windows back out. Its the only language chancers like this understand.

Thanks for the replies, appreciate it. Hubby elaborated on the explanation he received from your man, he's apparently in the process of remortgaging a rental property he has as he wanted to release some equity to upgrade his main residential property but didn't realise it would take so long to do, I personally think it very niave of him to think he'd have the money that quickly and also very cheeky of him to go ahead with the work without having the money in hand. Anyway, assuming he's telling the truth we'll give him the benefit of the doubt for two weeks and then come down heavy.

You might want to add some interest to the bill.

Hasslehoff said:

unfortunately if you are going to work in the black you will fall foul of these situations. .............. The only recourse is to talk to the customer but if he is coy he will know that someone who works in the black is hardly in a position to dictate terms.

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I disagree. You don't have to settle up for tax/VAT until after the end of the financial year. Just because the job is a nixer, it doesn't mean it was "in the black" and that the OP's hubby has no official recourse. Hubby should proceed on the basis that he had always intended to pay the necessary taxes on the job, nobody can prove otherwise. Take court action if necessary - don't worry about being accused of working on the black..

Chancers will always have very good explanations as to why they cannot come up with the money..............So either you continue to go along with him, or you give him a deadline, after which you'll be along to take your windows back. Also, you can charge interest - http://www.entemp.ie/enterprise/smes/latepay.htm - will give you details of Late Payments in Commercial Transactions Regulations 2002. Interest, deadline, threat of taking windows back/legal action should concentrate his mind wonderfully.