Payment Disputes Questions

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Payment Disputes
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my pool company file a lien on my property without completing the job...Read More
Anonymous Contractor
1 answerAdd commentOct 13, 2022
FloridaConstruction ContractPayment Disputes
This is going to be an Accord and Satisfaction question but let me give some background. I am a small residential concrete finishing business in Ohio. The customer requested a quote to put a concrete skirting/patio around their new in-ground pool after the customer had backfilled the existing excavated trench around the pool with gravel. The quote for the patio was $5,600. The customer then verbally asked for a price for the gravel backfill which we verbally agreed to a combined price of $6,500 for the concrete work and for 20 tons of gravel backfill with additional reasonable cost if it needed more than 20 tons. It required 28 tons of gravel so the final invoice was $7,300. It does not appear that there is a big issue with the final gross amount of $7,300. The customer was very hands-on with comments and demands throughout the project work. The critical item was that he filled the pool with water before we arrived and wanted us to put plastic (i.e. visqueen) over the entire pool and down between the future concrete edge and the side of the pool in order to prevent splatter from getting in the pool water. I told him that the plastic would prevent a good concrete finished edge up against the pool side and that he would need to cut the plastic away after the concrete dried which may leave some plastic showing. He said "do the best that you can" but insisted on his process. I told him that the normal practice is to do the work without water in the pool and have a solid edge between the poolside and the concrete in order to get a good finished edge. His dispute is with the quality of the finished edge but I am not asking for advice on resolving that issue. My question is with Accord and Satisfaction. My final invoice (invoice #1722 dated 10/4/22 for work that was completed on 9/23/22) for $7,300 is itemized as $5,600 for the concrete work and $1,700 for the backfill but it is all on one invoice (i.e. not separate invoices for the backfill and concrete work). I have had several discussions with the customer regarding the quality dispute and he refuses to let me on the property to assess and remediate. There is no dispute on the quality of the gravel backfill portion of the job. I finally offered a $500 goodwill credit to resolve the issue if he pays $6,800 which is did not accept. He verbally offered $5,900 as payment in full which I declined. He then sent me a letter in the general format of an invoice and labelled it "corrected invoice #1722". His corrected invoice is organized in two parts ($2,108 for the gravel and backfill and a $5,000 gross amount for the concrete). I have no idea how he came up with $5,000 as the gross amount for the concrete work when my invoice (and initial written estimate) shows $5,600. I also do not know how he comes up with $2,108 for the backfill when my invoice shows $1,700. In short, his gross amount of $5,000 + $2,108 = $7,108 as compared to my invoice of $7,300. I would have been fine with this difference but he then deducts $839.15 from the $5,000 to arrive at an amount of $4,160.85 for the concrete work. He issued two checks (one for $2,108 for the backfill and one for $4,160.85 for the concrete). The check memos say "concrete" on the $4,160.85 check and "backfill" on the $2,108 check. The checks do not say "paid in full" but his letter/corrected invoice, as well our discussion, leads me to reasonably assume that he intends the payments to be considered "payment in full". My understanding of Ohio Revised Code 1303.40 is that if I cash the checks, it will be considered payment in full under Accord and Satisfaction doctrine. My questions are 1) I assume that I should not cash the concrete check as it will likely be interpreted as payment in full. 2) Can I cash the backfill check which exceeds the backfill portion of the invoice and preserve my rights to collect the full amount on the concrete work? 3) If so, should I refund the overpayment of $408 on the backfill or just treat it as a deposit or partial payment on his account? 4) If I treat the $408 as a deposit, should notify him and, in that notification, should I state that I reject his concrete adjustments and request that he acknowledge that I am cashing the $4,160.85 check as partial payment of the concrete portion of the invoice. 5) If I proceed as stated in #3, and the customer accepts, can I cash the $4,160.85 check. 6) Do you have any other advice. Hopefully this has been entertaining to read and potentially be an example for your future blogs or customers. Please send response to More
Anonymous Contractor
Waiting for answerAdd commentOct 13, 2022
OhioCollectionsMechanics LienPayment Disputes
Government project overseas. All subcontractor and sub-subcontractor work performed in the USA. GC paid subcontractor for all of sub-subcontractor's work and finished materials. Subcontractor refuses to pay sub-subcontractor. Sub-subcontractor makes Miller Act claim notice. GC responds that no bond was issued or required -- asserts requirement waived under overseas project exception of 40 U.S.C. 3131(d). What recourse does the sub-subcontractor have? Obviously, no lien could be obtained on government contract. Can sub-subcontractor pursue claim against GC for failure to obtain bond, if the exception was not proper?...Read More
Anonymous Subcontractor
1 answerAdd commentSep 18, 2017
CaliforniaBond ClaimsConstruction ContractPayment DisputesRecovery Options
We recently filed a mechanics lien against a client. Unfortunately he sold his land in August. Today a legal company has called to talk to an officer of our company. The owner asked that I reach out to see if we should call back . We dont know if the company is working for the client or what their intentions are....Read More
Anonymous Subcontractor
1 answerAdd commentSep 18, 2017
ArizonaMechanics LienPayment Disputes
Property manager has been lying that payment would be maid soon but already over 90 days of deadline of lien....Read More
Anonymous Subcontractor
1 answerAdd commentJan 8, 2019
GeorgiaLien DeadlinesMechanics LienPayment DisputesRight to Lien
We still have not been paid on this job. Finished over a year ago. Looking for advice/action...Read More
Anonymous Sub-Subcontractor
3 answersAdd commentDec 29, 2020
GeorgiaCash FlowCollectionsCredit ManagementPayment Disputes
The work related to the lien I am filing was done in Multiple Units throughout a Condo building...but technically the company I was doing the work for was working for the Home Owners Association, not the individual units. The HOA is providing Internet and TV to all the units in the building, and my work was related to installing the equipment required for the HOA to provide those services to individual Units in the building. (Its a bulk TV and Internet service, so all units will get the service, however I only installed the equipment in certain Units) What do you recommend? ...Read More
Anonymous Subcontractor
1 answerAdd commentApr 16, 2020
FloridaChange OrdersCollectionsMechanics LienPayment Disputes
Hi I hired a general contractor to redo my bathroom, and do a walk in shower. I requested a signed contract but he ignored my request, but furnished me with a detailed estimate. The floor of the tiled shower was not pitched right, neither was the shower threshold, and water was pooling. He redid it once and still not right. I hired a professional tiler to redo/repair it and it cost $1500. We discovered he had tiled over tile the second time! I also had the tiler replace the threshold at the bathroom entrance which was crooked which cost $290. He had also walked off the job with the doorway unpainted and back splash to vanity not installed. He only deducted $1000 off of the bill for shower repair. He added costs to the bill unexpected like $100 for installing the toilet holder and mirror. $50 for "adjusting window" that wasn't on the estimate. He had told me he would take $500 off the bill in May for the fact we had 110V for washing machine (a European all in one) and he had priced for 220V. He didn't in the final invoice. He charged us $100 to vacuum up the debris that fell on my downstairs kitchen ceiling (that has a removable panel in case of plumbing issues) when he has "cleanup" as a part of his estimate. Now he is saying unless he gets the full amount he invoiced me for, he will place a contractor's lien on Monday. I have just been approved for financing for a line of credit but haven't closed yet. I am worried this will mess that up. I planned on sending him a detailed certified letter and paying him the balance after deducting the cost of the tiler, and maint man to finish painting and install the back splash. I have been told I have the Right of Recoupement. Can he still file a lien without a signed contract? I want to deduct the larger amount for the shower repair, plus the other things I mentioned, but don't want a lien on my hose. He will NOT negotiate at all. What can I do? ...Read More
Anonymous Contractor
1 answerAdd commentAug 21, 2019
MassachusettsChange OrdersPayment Disputes
I constructed a fast food restaurant in a strip shopping center where the franchise owner only rents and does not own the space. We completed the project 12/27/2019 and the franchise owner is nickel and diming both our subs and us to death Most subs have been paid a reduced amount due to the owner demanding they reduce their fees and we have not received final payment. He has demanded we reduce our price also....Read More
Anonymous Contractor
2 answersAdd commentApr 16, 2020
MarylandMechanics LienPayment DisputesRight to Lien
I had a construction contract in which the government included the payment of taxes. In the end he did not want to pay us. The project was outside the US. This was 2 years ago. I need advice to claim that payment....Read More
Anonymous Contractor
3 answersAdd commentJan 1, 2021
TexasConstruction ContractPay ApplicationsPayment Disputes
Hi I hired a contractor to perform a job on a driveway/sidewalk. We did not sign any contracts. At the beginning of a job I paid him half the money in cash (forgot to ask for a proof). Village required both pre-pour and final inspection. Final inspection failed because the sidewalk is above the house foundation and there is absolutely no pitch(slope) away from the house, so it crates a condition where water can get into the house instead of flowing freely away from the house. The contractor is extremely hard to talk to and not too much willing to fix the issue. He threatened however to put a lien against my house, which I think is ridiculous given the village failed the inspection. Can he even do that without us having any sort of contract? I keep sending him messages reminding the extent of the damage (it rained and water just puddles against a house). On a side note can I just hire a different contractor to fix the issue without worrying the one I hired will change his mind sometime in the future and will reach out to me to fix the issue? I don't want to pay another contractor only to find out I can shot myself in a foot and pay twice for same work. thanks !...Read More
Anonymous Subcontractor
1 answerAdd commentOct 7, 2017
IllinoisConstruction ContractLawsuitMechanics LienPayment Disputes
I received a car from the widow of a customer in exchange for money owed for work done on the customers fabrication machinery of which I was owed 10 times of what the car was worth. The title was missing and the car had multiple problems of which I have spent time and money to repair the widow's son from out of state says that they found the title and want money or they will report the car as stolen. There was no written bill of sale and the title hadn't even been transferred from the original owner. He lost the title when he bought the car and never transferred it. I live in Oklahoma. I last worked on the equipment within the 4 month period in which i can still file a mechanics lien but the equipment has possibly already been sold to a local shop. another thing, he owned the house she lives in and took a loan out against it for his business. He was not incorporated. I now wish to file liens on the machinery in which the work was performed if at all possible.....Read More
Anonymous Contractor
1 answerAdd commentDec 28, 2017
OklahomaMechanics LienPayment DisputesRecovery Options
My contract with the general contractor doesn't contain any penalties for not meeting the project schedule. It does however contain arbitration language should the parties be unable to settle a dispute. The project was scheduled for completion 4-5 weeks from the start date. The project is 17 weeks behind schedule. I sent the contractor a cure letter to complete the project in 10 days as the project has been at 90% mark for 10 weeks. is the 10 day cure letter sufficient? Also, does the contractor have to warranty work already completed even if the contract is terminated?...Read More
Anonymous Contractor
1 answerAdd commentAug 27, 2021
North CarolinaBack ChargesPayment Disputes
I was working in the ac company and when i was olmost finish the job i no recieve a payment and i buy somematerial but the contractor that i work he no claim the money for a general so im in the air can i claim togeneral...Read More
Anonymous Contractor
1 answerAdd commentSep 9, 2017
NevadaMechanics LienPayment DisputesRecovery Options
Our customer is acting as their own general contractor on the job to try and save money. On our final invoice for our scope, she shorted us 70% of the final invoice value ($39k). She wrote on the check that "By cashing check, contractor accepts this as payment in full". She provided her list of reasons for shorting the amount, but they are completely unwarranted/previously addressed, and the only legitimate item called out was incredibly vague detail on the plans (insulation for slab on grade above and beyond normal building code) and she failed to provide any answers when consulted at the time, leaving it up to interpretation by us. She also failed to mention she was going to withhold payment for it at that time, and allowed the complete interior of the building to be completed preventing us from even fixing the item even if we were willing to. If we cash the check are we agreeing to it being payment in full even though we do not agree and wish to process it as a partial payment of the balance due?...Read More
Anonymous Contractor
1 answerAdd commentApr 9, 2019
WashingtonPayment Disputes