Home>Levelset Community>Legal Help>How can I collect from dead-beat homeowner?

How can I collect from dead-beat homeowner?

2014 customer contacts me through Home Advisor, needing concrete porch & steps. I do job, he pays, no problem. Fast forward 6 years, he plagues me with voicemails that he has cracking and needs me to take a look, and asks which form of payment do I want, cash or check? I finally get there, as this job is 2 hours from my area, on large Lake. We discuss issue and he agrees to my price of $10,800.00 for demo of a portion of concrete and repour. I do job, renting jack hammer, other equipment, buy concrete, and pay my guys, job turns out good. My findings are that the cause of this isse is his place was built on filldirt, and everything is sinking. Job is complete, I knock on door to submit bill, NO Answer! I leave bill in door, 2 weeks later ... No Payment. I stop up there yesterday, lights go out when I pull in, I pound on door, he answers with an attitude... saying he's not paying but $3,000.00! He doesn't feel he should pay, I say, why should I pay for your house being built on fill, everything is now settling after 20 years. He says "I wanted the job done"! He apparently sent check for 3K, still owes 7,800.00. What are my Rights!

1 reply

Mar 4, 2020

When work has been performed but not paid for, Virginia contractors have many tools at their disposal to force payment. Let's look at a few of these tools.

Demand letters

For one, making the dispute a little more formal by sending an official demand letter can go a long way toward forcing payment. A good demand letter should include specific legal threats and put a deadline for when payment must be made. That way, the owner knows you're willing to do whatever it takes to make sure you're paid what you're owed.

Notice of Intent to Lien

Taking things a step further and threatening to file a mechanics lien can be a powerful move, too. Mechanics liens can cause a lot of trouble for property owners, and they'll want to avoid mechanics liens if at all possible. Because of this, the threat of a lien - via a Notice of Intent to Lien - will be quite a powerful tool, itself.

Mechanics lien

Mechanics liens are specifically designed to recover construction payments, and they do a good job of it. When a lien is filed, the owner will need to address the issue one way or another. Otherwise, they could potentially end up losing their property. For more on how mechanics liens work and how Virginia liens work, specifically: - How Do Mechanics Liens Work? 17 Ways a Lien Gets You Paid - Virginia Mechanics Lien Guide and FAQs - How to File a Virginia Mechanics Lien – Step by Step Guide to Get You Paid

Legal claims

Any time work has been done, but not paid for, there's a strong chance that the contract has been breached. So, a breach of contract claim may be on the table, among other potential legal claims. If it looks like legal action may become necessary, it'd be helpful to consult a local Virginia construction attorney. They'll be able to review your project documentation as well as other relevant circumstances, then advise on how best to move forward with claims.

Collections

Yet another option for payment recovery might be to send the debt to collections. While not always the most favorable option, it could help to get paid without expending direct effort on collecting the debt, yourself.

Accepting an incomplete final payment

As a final note - keep in mind that there's risk involved when an owner attempts to make a final payment for less than what's owed. If the owner pays only a fraction of what's due, stating the check constitutes "final" payment, then the contractor could find themselves in trouble if they cash that check and try to collect the remainder of the debt. More on that here: Are Checks with “Payment in Full” in Memo Line Legally Binding? Do They Affect Mechanics Lien Rights?

0 people found this helpful

Helpful