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I only have passing thoughts ... I am not a contractor; I have a large garden, and employ contractors quite often, typically same-people & repeat-business, so that is the perspective I am coming from.
I expect that a non-refundable deposit is exactly that. If my plans change, and I have to let down a contractor, then I have to pay. It may piss me off every time it happens ...but that's how it is, so I suck it up
OTOH if I had a repeat-business, preferred, contractor and my plans changed I would make sure that they were not out of pocket. Period. Regardless of what their T&C's said.
All contractor work here is done on T&M, I only ask for a hourly rate, and sometimes for a verbal indication of "how long will it take". Big contracts are more formal that that, but still hourly rate (negotiated down to take into account that they are not wasting speculative time spent doing quotes etc.) and materials are negotiated x% over cost - which is usually cheaper than I could have bought them anyway ...
I know full well that when contractors are on site one of several things will happen. I will change my mind :) ; or the project will hit a snag and jointly we will decide on a solution. So in effect I take the risk. It is so much easier for the contractor to do their booking keeping if they don't have to separate "overs" from "quote", and I have the expectation that that is reflected in their hourly-rate and/or their agility and willingness to provide me with service whenever I have an urgent problem
But if contractor does not do a full days work ("Had to take dog to vet") then I require that they bill me pro rata for travel expenses etc. that day ... that's not me problem/risk
If I find that contractor has stiffed me on price / whatever, they never work for me again. Simples. - nor probably for any of my mates. My parents had the same approach ... after 40 years living in the same house they had cycled through all contractors are were back to using the first lot again!
If you value that customer maybe you will choose to compromise (this time only).
Maybe on contracts where non-refundable-deposit might come into play you should explicitly point that out in the paperwork, rather than rely on the client diligently reading the T&C's (although it isn't as though its unusual / sharp-practice)
You lose out in another way Ed if you perhaps turned work away on the strength of having the now cancelled project filling your diary .
It's a difficult one but I suspect there are growing concerns about the economy which is possibly why your client have cancelled the project and suspect more will follow through due to the fall out on Covid 19 etc. If your contract clearly states that there is a non returnable deposit then it's clear cut as far as I am concerned. I suspect he's trying it on to make you feel guilty or uncomfortable but that's part of the business process. The important thing is to part amicably and professionally.
From the point of view of a property owner employing the services of a contractor that has spent time planning and ordering for a job - out of respect for the contractor I would expect to suck it up as it was me that cancelled. Their schedule and planned work can't suffer because I cancelled. Just make sure you don't work for this individual again, unless they change their way of thinking and have a bit more respect for you.
I agree with the others, if its in the T&Cs thats it.
My biggest justification for enforcing it is it was scheduled in and I (my team) have turned away work during that period to meet your deadlines.
The counter to enforcing it is there any likelihood that the client is going to give you more work of similar or greater value. In which case you could perhaps take 5%, and give 5% as a credit note valid for x months???
Thanks for replies everyone. He was annoyed that I had to move his start date back a week due to hold ups on the previous job. Weather, unforeseen issues and extras made his start date unachievable but I make this clear that this is a possibility to all clients when I give start dates. Every contact ince he cancelled I have offered to continue with the project but he has decided to cancel anyway. He has threatened me with trading standards and small claims and after legal advice (one of my guys is doing a law degree) I have decided to let him test the strength of my contract if he decides to take it that far. We shall see.
I bet you a quid he doesn't bother ... which is a pity because the outcome from that would be clear cut. Absent that there is risk that he bad mouths you and costs you business. If you hear nothing, painful as it might be, I suggest considering if you want the hassle of preempting that by telling him you would take a dim view of such behaviour - maybe sweetened with a "voucher" type money-off any future work as someone mentioned up-thread, rather than discovering that has happened well after the fact when the damage has been done.
if you offer a voucher type thing make it with a time limmit ie a expirey date
Totally agreed... and specify if it is transferrable or not
Reading between the lines perhaps he wants his money back because he has found a cheaper quote and now painted himself into a corner realising its going to cost him more in the long run if you keep his deposit to which you are entitled .
You have offered to fulfill your obligation to continue work which covers you .
A voucher is a good gesture as an act of good will and demonstrates good intention .
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