What is your tactic to collect payment?

As a QC Manager, my job intells collecting payment at time of completion/inspection. Customers usually had 1 to 3 days untill the final inspection where I would ensure them the integrity of the roof, then recieve payment. I had a couple of customers use insurance payment as a delay tactic, never did have to file a lean as they paid within the week. Was only forced to get heated with a new construction contracter once, but he already new what was coming after dodging phone calls for a couple of weeks, he finally paid.

I once lined my crew up on the ridge line with a trailer parked in the driveway to start removing "my" shingles...then i knocked on the door to inform the 60 days late homeowner that i was repossesing my material he hadnt paid for. He quickly wrote a check..which BTW was good. ;) This week i had one was 45 days late which they are selling the house. I gave them 30 days to pay because was supposed to close in two weeks. Something went wrong as is the norm for closings and it didnt close. I told them i would work with them and let them make payments but after no check and no answering my phone calls I left them a voicemail that said i would reposses my shingles and file a lein for my labor putting them on and taking them off. They called back and apologized for being busy and said the check would be in the mail for 1/3 payment on monday. We will see ;)

1.) Always get a deposit. It tells you that they are serious about the job and will at least make an attempt to pay you. I normally get a third up front. 2.) Don't pay for your materials until you are paid. The supplier can lien the job for his money. You can use the deposit to pay for your labor. 3.) Don't call in the final inspection until you are paid. It will eventually expire and he will have to pay to get it finalized if he ever sells the home. 4.) Place a lien on the home within 90 days. (Florida) Not sure in other states. Owner will also have to pay this when he sells. It has to be renewed yearly however.

Other roofers will use "the deposit" as a selling tool. They will claim that you don't have the money to get the materials. Regardless you have some money to work with. Cash flow is a good thing.

Ask the client to go up on the roof to see the workmenship. Once he's on the roof remove the ladder, until he pays.. B)

Vaa Fakaosifolau Said:

jimAKAblue Said:

Vaa Fakaosifolau Said: We cant put a lien on the house where I did the job because we didnt contract to the homeowner, we contracted to the builder. :S

Your laws must be very differnt from anything Ive ever encountered.

Well Im assuming thats the case based on previous experience, the work I did was to repair someone elses work, ie I repaired the roof the roofer who sub contracted to do the original work for the builder did. I dont think we would have any claim on the homeowner because as far as he was concerned the work the builder did was done and he had paid for it. The reason I did the work was because the Council wouldnt sign off the roof because the roofer hadnt worked the rubber membrane into the outlets properly. (its rare the Council inspector even goes on the roofs) I did the builder a favour and helped him out of a sticky situation, then he chit on me by delaying payment. :angry:

The original roofer went bust, so any warranty is useless anyway. I didnt give a warranty on his roof, or on my work, although if the homeowner calls to say the outlets are leaking then I would go and fix them, Im soft that way. :S

I'm most familiar with Michigan lien laws. In MI, the mechanics can lien the homeowner if they don't get paid by the builder or contractor or whomever. It is up to the homeowner to get signed waivers of liens from the builder or general contractor etc. It's complicated but I can tell you what is effective. Rap on the homeowner's door and let them know you intend to file a lien against the property.

although if the homeowner calls to say the outlets are leaking then I would go and fix them, Im soft that way. :S

Thats not being soft, thats good charactor AND integrity,for bus. or yourself thats awesome. B)

Vaa Fakaosifolau Said: We cant put a lien on the house where I did the job because we didnt contract to the homeowner, we contracted to the builder. :S

Your laws must be very differnt from anything I've ever encountered.

Terry Said: My theorey is - You earned that money - They agreed to pay the money - The money is due you - Get as much of it as you can. Here, if the magistrate rules that you are due the money, the filing fees are added to the final total along with whatever finance charges and other charges directly related to the collection of the debt.

Agreed.

And, in some states/localities, you can file a lien and then foreclose the house to collect the lien! I recently read about a condo association foreclosing someone's condo for association dues.

My theorey is - You earned that money - They agreed to pay the money - The money is due you - Get as much of it as you can. Here, if the magistrate rules that you are due the money, the filing fees are added to the final total along with whatever finance charges and other charges directly related to the collection of the debt.

I agree with the Missus.

insuranceroofer Said:

kage Said:

insuranceroofer Said: All that being said, unless I need the money I really dont give a shit.

? , why do the job if ya dont need the money??

That is an excellent point. To tell you the truth some people that are in roofing, could retire today and dont need anymore money. Why does Bill Gates keep working or Warren Buffet, they dont need the money. Anyways, Im off topic now. The point is if Im busy signing up new customers, what is the point in wasting time trying to collect? Now, if this happens to a roofing company all the time, the roofing company is doing something wrong in the first place, but if this is just an occasional thing, then why worry about it? Whats the big deal, if I lose 5,000 once a year on one job, if Im making several hundred thousand dollars a year?

I dont often find myself in a position with such a dead beat that refuses to pay. Also, I have already collected the 1st insurance check and deductible before the job has started, so If 1 in 200 people is such a dead beat, sometimes it is not worth my time, especially since we are never talking about the entire amount of the job anyways.

Pursuing a person like this takes time and effort. I could easily spend that time getting one new customer or 5 to replace that bad customer.

It just depends on whats going on. If business is very slow and I think its worth my time then Ill pursue the dead beat. However; if I have several vacations planned that cost me several thousands of dollars total, I might not even bother.

If you have a legit contract, you could simply turn the collection over to a collection agency. They take half but if you were going to leave it all on the table anyway, half is a lot better than nothing.

kage Said:

insuranceroofer Said: All that being said, unless I need the money I really dont give a shit.

? , why do the job if ya dont need the money??

That is an excellent point. To tell you the truth some people that are in roofing, could retire today and don't need anymore money. Why does Bill Gates keep working or Warren Buffet, they don't need the money. Anyways, I'm off topic now. The point is if I'm busy signing up new customers, what is the point in wasting time trying to collect? Now, if this happens to a roofing company all the time, the roofing company is doing something wrong in the first place, but if this is just an occasional thing, then why worry about it? Whats the big deal, if I lose 5,000 once a year on one job, if I'm making several hundred thousand dollars a year?

I don't often find myself in a position with such a dead beat that refuses to pay. Also, I have already collected the 1st insurance check and deductible before the job has started, so If 1 in 200 people is such a dead beat, sometimes it is not worth my time, especially since we are never talking about the entire amount of the job anyways.

Pursuing a person like this takes time and effort. I could easily spend that time getting one new customer or 5 to replace that bad customer.

It just depends on whats going on. If business is very slow and I think its worth my time then I'll pursue the dead beat. However; if I have several vacations planned that cost me several thousands of dollars total, I might not even bother.

insuranceroofer Said: All that being said, unless I need the money I really dont give a shit.

? , why do the job if ya dont need the money??

Just don't pay your laborers. Tell the laborers they are not getting paid, because the people at 101 elm st haven't paid you yet. Tell them you have tried everything, and that any help from them would be great.

Many installers in Texas are illegal (yeah thats terrible, but its just the way it is, the only way to not hire illegals would be to move out of Texas)

When a poor illegal tough as nails doesn't get paid there will be trouble, guns etc... That HO will not dare deny illegals money, because illegals can easily disappear after they beat the crap out of someone or worse kill them.

Other than that there are plenty of legal ways to write better contracts in the first place and then depending on your state you can legally pursue getting your money. It all depends on how much its worth to you. I like sending letters/flyers to all the HO'S neighbors notifying them of what the neighbor has done.

I also like to do background checks and notfying all relatives. I love showing up to their church and notfying the entire church. All that being said, unless I need the money I really don't give a shit.

My Rottie,a couple biker buddies and off i go... B)

A successful person is built with the bricks that are thrown at him . ? This may work as a collection tool Mike. Here kitty kitty...... http://lolcat.net/v/animated/machine_gun_cat.gif.html I have just totally forgotten how to work this site .