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• PRO

  Darren Walters December 31, 2016 at 10:13am

  As long as they understood that payment was due on completion?  Then call today mate, they may have thought they had paid but it didn't go through.  You are only reminding them to do something they have already agreed to do.

  "Give 'em an inch and they'll take a mile"
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    Marc Ollerenshaw > Darren Walters December 31, 2016 at 10:15am

    Thanks Darren,
    The terms clearly state that payment is due on completion of the work.
    
    I will give them a call shortly and see what's happened as I had the same thought, maybe they have done the payment and it's bounced back for some reason.
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  Graeme Brown December 31, 2016 at 10:23am

  I would give it two days then call them. On larger jobs like turfing or decking I always ask for a 50% deposit before work begins. I have never had a customer refuse to pay the deposit and means materials are covered. Never had a non payer afterwards either which I put down to, if they are going to pay half they are happy to pay for the whole job.
  These TV programs about cowboy builders annoy me where they claim all reputable tradesmen have credit accounts and should never ask for money up front. There is cowboy customers as well
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    Marc Ollerenshaw > Graeme Brown December 31, 2016 at 10:35am

    We usually ask for materials up front as a deposit but with this job we ordered the materials at the same time as ordering for another job and since it was only a week before the job we decided to tell them to pay in full on completion.... our mistake I guess.
    
    I agree with the cowboy traders thing, we have trade cash accounts with all suppliers
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  Richard Love December 31, 2016 at 10:31am

  Morning.
  
  This is my biggest problem when running my business. I state terms to client and that's fine. On larger projects I get some material money up front or have staggered payments.
  I find people are happy to transfer the initial payment without really knowing you then when the jobs done its a struggle to get the balance, which is the most important part!! Running 2x jobs at once I find every Friday stressful as its wages day.
  
  If they have said they are transferring the funds and haven't in a time scale, I would contact them to say you haven't received it and you are checking everything's alright ie account numbers etc.
  
  I don't like asking for the payment as don't want to seem heavy handed but it's a business we're running.
  
  I had a job recently that was finished on a Thursday and the client sent text saying see would pay on Friday. On the Friday nothing. Checked the text the Friday and date was a month away ( I hadn't picked up on the date) replied to text about running a business staff wages etc. money was in my account in 10 minutes???
  
  I will stop there before I rant on!
  
  Good luck.
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    Marc Ollerenshaw > Richard Love December 31, 2016 at 10:49am

    That's my thoughts Richard, never want seem too heavy but at the same time the materials were supplied and the job was completed
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  Graeme Brown December 31, 2016 at 12:23pm

  I always go with 50% rather than specific materials costs and I can pay a labourer if needed if they didnt pay the balance at least the materials are paid and the labourers cost is also covered
  I did the materials deposit when I started out but got loads of customers whinging about how much I am earning when I am out bursting my arse hand shovelling 4+ tonnes of turf base and multiple pallets of turf.
• PRO

  Gary RK December 31, 2016 at 12:34pm

  Time for a New Year's resolution ? The challenge is to ensure the client knows the expectations for payment.

  You/we know what we want, but do we communicate in black & white, in a contract, to the client and get signed off? The customer may read or hear what has been said, but may have a completely different understanding.

  Look at recent discussions; it is more often going wrong when we do not documented it or have sufficient T&Cs.

  So; a clear & informative Quote, showing job breakdown, deposit required (and by when), payment schedule (how staged), on-completion payment. Other trades do staged payments but it seems landscapers typically do not.

  Your T&Cs should document these payment terms and how late payment is handled. Remember - all this signed off by the client BEFORE job commences. 

  Once those Terms are breached, you hold back further work, do standard Credit Control letters, finalising in Small Claims Court (via MCOL). It is cheap, easy, quick and win-able if you've got your ducks already in a row (been there and done it a few times).

  The payment delays or failures happen where you've left a gaping hole that a client can walk through to delay/avoid paying. It's business and you need to get a grip.

  My approach to a large job; take a deposit and staged payments, leaving only a 10 or so % outstanding on completion. You then have income to match your job outgoings, cash flow and helps resolve issues.
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    Marc Ollerenshaw > Gary RK December 31, 2016 at 12:40pm

    Hi Guys thanks for all your advice.
    
    I am just off the phone to the client and she has made a mistake and entered the wrong sort Code when making the transfer resulting in someone else receiving the money. She has contact her bank and sorted it out and although it will take her 5 weeks to get the money back she has paid us and all is clear now.
    
    Thanks again guys and I wish you all a happy new year!
    • PRO

      Darren Walters > Marc Ollerenshaw December 31, 2016 at 3:19pm

      You've probably done the client a favour by acting promptly.  At least they have the ball rolling for getting their money back from the mis-payment.