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Need letter to send to KSI & Amgen to retrieve rented equipment not being paid for

Rhode IslandConstruction ContractPayment Disputes

CSI is a welding equipment lessor to KSI on the Amgen project. KSI has over $400K due to us for rented equipment & is not making payments. We are starting to lien projects but want to send notice that we will be retrieving our equipment... however, I do not know how to do that legally. Please advise. Thank you.

1 reply

Aug 31, 2020
If your contract specifically states that the equipment can be taken back for failure to make payment, then it should be relatively easy to draw up a demand letter threatening (or simply notifying) a customer that the equipment will be recovered if payment hasn't been made. Citing to the contract and briefly describing the circumstances should be a good start, and threatening to proceed with legal action could bolster the demand. Sending simple documents shouldn't always require a lawyer, but if you need help drafting a letter, an attorney could help could help to craft a more forceful letter. You can begin the search for the right lawyer, here: Top U.S. Construction Lawyers. Even if the contract doesn't specifically allow you to recover the equipment, you may be able to anyway since your customer is likely in breach of the contract if they've failed to make payments. Still, it'd be wise to provide them notice before the equipment is repossessed. Simply taking back the equipment might actually end up putting you in breach of the agreement, as well, muddying the waters of the dispute - much like it can for an unpaid subcontractor who walks off the job: Can you Walk Off the Job? | The Right to Stop Work for Non-Payment. So, it's typically a good idea to make a calculated decision and to provide the customer ample notice.
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