> Contractor) What if client does not pay?

Contractor) What if client does not pay?

Posted at: 2014-12-08 
If you can't record a lien, send a demand letter requiring payment by a certain date or a suit will be filed in small claims court. Then file the suit, even if the court costs are a large percentage of the damages, and include those costs in your request for damages. You may never see a dime, but you will at least get an unpaid judgment on their credit record.

Alternately, you might find a debt collection company that will buy the debt from you. You will not get a lot of money for the receivable, but it is better than nothing and it will sic the collectors on the deadbeats so there is some small satisfaction in that as well.

You could also require a deposit for the cost of the materials. Then if they don't pay you are just out your labor costs, and most people won't have a problem with this since if you do not perform then they still have the materials they purchased with their deposit and can go find another contractor.

Hello.

I'm working for contractor company and sometimes i see some clients who do not pay for what we have done. But i have no idea what we have to do. Sometimes cost is just $4~500 and sometimes $5~6000.00. As you know, it might be able to take more than $5000.00 if we sue them. If they have a property we are able to file a lien but some are just tenants. What should we do?? Thanks.