[M Walker]

Hi all here with my current problem hopefully some of you more knowledgable members may offer some advice as to what I should do next

I was asked to quote for the builders cleans for seven propertys in December last year and was duly notified in January by the MD of the construction company that my quote was acceptable and a starting date first week in January. Copies of the relevent paperwork were sent to me which were signed and returned as required however my copies were never returned to me. I spoke with the MD regarding this and he informed me he was having a couple of weeks paternity leave and could I start work he would forward my copies of the relevant paper work on his return. I am a reasonable chap and did exactly this. I explained that I would like to meet with him upon his return and this scenario was verbally agreed. I have now invoiced him twice for works completed and apropriatley signed off as up to the required standard by his site manager both invoices have become overdue and I spoke again with him this monday regarding this matter. He informed me that he would make automated BACS payment which would be in my account yesterday also he told me he would be onsite Tuesday which was good because I was also there. So I suggested again that we should meet and discuss outstanding issues. Much to my dismay I find that during the course of my day onsite on Tuesday he has turned up and gone again without making any attempt to meet with me as was agreed. Further to this the BACS payment never arrived as promised. I phoned him Friday to explain that the promised payment had not arrived and left him a message asking him to contact me as he was not answering his phone. He has failed to reply and does not seem to be answering my calls. Does this sound like an awkward customer? I have all but completed any works onsite apart from three sparkle cleans what do you reccomend my next course of action should be? I am about to fax him a letter explaining that I will be charging the 8% above base rate interest on all late payments and am considering the small claims route seven days from then however I am really not very happy about this situation and cannot understand how it has arisen. I have I believe provided an impeccable service for agreed terms.What should I do about the remaining works which I could complete within a day.
I would be very grateful for any advice as how I should proceed
Kindest Regards
Mark Walker

[CMS]

The problem that you have is that you are unsure whether he is unhappy, whether he's avoiding you....or what. Having just returned from Paternity Leave and in the throes of getting a site finished, he could just be extremely busy.

I would go to his office to see him, but not with a stroppy attitude. I would explain that as he seems to be extremely busy you've taken the opportunity to see him on his 'turf'.

Explain that you haven't had payment and as it has obviously slipped his mind you would be happy to take away a cheque there and then.

This might not work.................but at least you will know whether he's genuinely busy. If not he will be forced into the position where he has to tell you the problem.

What if he's not there when you go unannounced?

His staff will tell him that you turned up to see him and he may pull his finger out.

[*Chris Browne]

Let me get this straight, you started work in january, which you have invioced for...........
Is it me? we are only in february now!,........ i work for many building companies, ive never been paid that quick!  or am i missing something?


chris

[Simon H]

I was thinking that as well
We would normally have to wait till at least the end of March

Although I think Mark is more worried about not having his signed acceptance returned and broken arrangements

You should be ok with your completion docs signed

I wouldn't start worrying yet about payment especially with builders they are notorious
We have at least two that we regularly have to fax over court papers to before we get a decent response

Are they a large concern or a small company??

Simon

[CMS]

Let me get this straight, you started work in january, which you have invioced for...........
Is it me? we are only in february now!,........ i work for many building companies, ive never been paid that quick!  or am i missing something?


chris

I missed that when I made my post.

You've only been working since January. Today is February 18th for christs sake.

 

[M Walker]

Thank you for your replies. I am aware of how building companies work However I work to strict principals with regard to my invoicing. January might not seem that long but it is long enough to have outstanding invoices over 30 days I think it is more his failure to communicate which concerns me. Dont forget I was promised payment this friday which never materialized nor did he respond to my message left on his mobile phone. Being busy is not much of an excuse I get busy but always find time to return calls I consider the fact that he turned up onsite on tuesday and never bothered to introduce himself to me at best very rude and warning bells have been ringing ever since. I did not expect to get the payment as promised and was justified in my suspicion. I would except if there is a problem with holding payment until it is rectified however he must communicate how else are you to resolve things. By excepting my quotation he has also to accept the attached terms and conditions relating to payment this was discussed prior to my commencing works and agreed. He has also forgot or not bothered to return paperwork relating to the works which he should have signed and returned before the start luckily I have got copies of all the relevant documents and proof that he has recieved them I suspect I will have to give him seven further days before I commence legal proceedings which I find extremley frustrating.
Kindest regards Mark

[*Chris Browne]

I think you must have been looking at this oppurtunity through rose tinted glasses, you may have strict principals regarding invoicing, but that dosn't mean building companies do (and they do not!)
whether we like it or not when it comes to paying out contractors i'm afraid the cleaning company comes way down on there list of priorities, believe me in over 22 years in the industry i have never known a building company go out of there way to make sure the cleaning services are paid first and thats the way it is, Another thing is that i would not of gone on site without any signed agreement that the company had othereised you to do the work, but if the building company is a large well known company i cant see you not getting paid(they wont want the hassle) I would advise you sit back and leave at a while, you may make matters worse, i would also have been very supprised to find builders willing to agree to pay within 30 days!!! oh nirvana!


chris

[CMS]

Yes - I feel that there is a communications problem here.......................but I'm not entirely sure who's to blame.

You say that you'd like to come on to the forum and ask advice but when you get it you shoot it down!

You are living in cloud cuckoo land if you think its normal to pay that fast.

If you've done this type of work before how quickly did the others pay you? If you haven't, please listen to those who have.

I know what I would do if I was the builder...........................I'd pay you off and go somewhere else next time.

[M Walker]

CMS I am sorry I do not understand your last comment. I would hope that I am not that concieted to shoot anyones comments down even if they are not what I wanted to hear moreso I appreciate people taking the time to respond to my situation if within my last reply it gave that impression then I am sorry. I have worked before for major building companies and have dealt with payment issues from these companies I do not work for them any more as I cannot afford to extend credit for long periods of time This company in relation although limited is very small in comparison to the bigger companies and I have tried many times to speak with the managing director unsuccesfully I also appreciate I may have made mistakes early but the work has been done signed and sealed would it not be at least curteous of him to explain why he has not paid me as promised. I have never experienced a scenario where a customer has just completely ignored my requests perhaps I am slightly ignorant with regard to this
Kindest regards
Mark

[busydaffodil]

Mark, I feel for you.  I think you need to visit this guy, un-announced at his office.  Play it calmly but explain the transfer has not been received and could he write a cheque for you, while you wait.  Explain you only took the contract on as the agreement was quick payment.  Also tell him you have been stung by so many bigger companies that you rarely take on the kind of work you are doing for him, due to the late payments, etc.   
Good Luck

[martin19842]

hi there

well most things have been said,

one thing though

PRE START meeting, we always insist on one of those,

you'll probably find that the paperwork you signed, detailed the developers payment terms,

ie self billing, from site weekly tick sheets,
or application for payment method.
there my even have been a payment calender in there, that told you when works completed, payment for those works made on XX date.

However they dont usually stick to those.

the point is we work for several large developers,  and i can honestly say that our payment terms vary from 4 months,  right down to 21 days.

its all about the relationship you have with the custiomer,

and i mean all levels, site agent, are buld manaers,sales staff, Qs';s, construction director, and commercial director.

regards

martin

[dustycorner]

Hi Guys,

I also do work for building companies and have yet to wait more than six weeks for payment , one clients pays within seven days i state my terms, the client states their requirements, i meet those standards and expect to get paid regardless of what the construction industry considers standards practice.

I also take the time to nurture working relationship with site manager, director/owner and the guy in the account department who will be processing mt cheque.

Cheers Mark.

[*Chris Browne]

Hi

six weeks is around 43/45 days, and  thats when i would expect to get paid i would not be hounding or threatening anyone before then , mark did the work in january and then invoiced after the work was completed so at the most he is under or just over 30 days, if you can get paid within 7 days from a major building company then you have found a very good company and good luck to you.


chris

[Paul Forster]

Hi In the past i have done tree work and landscaping for several developers / contractors. Payment would normaly take well over 30 days and several phone cals later. In the end we used to factor the cost of the delay in payment and phone cals chasing up into the cost.

As stated probably best to pop in and politely chase this up. is there a sight foreman etc who could convey your mesage?

[dustycorner]

Hi,

The client who pays within 7 days is a meduim sized business, the reason they pay so promptly is because previous cleaning conmpany didn't deliver the standards my company does.

6 weeks is the longest i've had to wait for payment, as a rule of thumb payment is recieved 3/4 weeks from invoice date.

Suspect i have been fortuitous with my clients to date.

Cheers Mark.

[Purity]

We work with builders, also in the US thay are notorious for late payments. Managing the cash flow of your business is serious, be serious and forward, yet polite. We like to first call, then send out an invoice with the late charges attached. Hopefully all is well, and you  will receive the monies due to you. not sure if its an option but we also use credit requests on all new accounts.. especailly builders.