Demanding payment in full or kick the job out?

[KevinP73]

I've got a customer who dropped his 911 here to be refinished. The project has been going smoothly with the exception of his finances. I've gotten to the point where I put his car aside while I'm waiting for progress payments. All this really does is take up floor space and give me one more headache to deal with.
I've thought of telling him it's time to pay up in full before I go any further with the project but I'm not sure how fair this will be.
I kinda see my only choices as,
1. Continue as is.
2. Have in pay in full now.
3. Have him come get his car and take it out of my shop.
What do you think?

[KNS]

How far along are you? Is the amount he's paid (roughly) equal to the amount of work done up to this point?

[KevinP73]

Originally Posted by KNS

How far along are you? Is the amount he's paid (roughly) equal to the amount of work done up to this point?

He has paid approx. 25% of the job where I'm about 50% completed.

[MFAFF]

Unless you enjoy being his banker and loaning him the money to do the work.. I'd stop doing new work until he pays you for the work you have done to date.

But there is no reason to be anything other than polite, calm and clear with him...

[Looking_for_911]

Couldn't blame you if you told him you can't proceed without more funds coming your way. Let him know that you'll have to put a mechanic's lien on his car if he doesn't some through with payment. Maybe that'll spur him along.
Good luck!

[Heel n Toe]

(Hmmm.. posts 3-5 came in while I was typing this, but I'm gonna leave it as is....)

What was your original agreement? Weekly payments for work and materials expended that week? Every two weeks?

If there wasn't anything that specific, maybe it's time to call him and spell something out and put it on paper. Tell him you need him to get caught up before you can move forward. I'm assuming you don't have any secure outside space to put it if you're thinking about having him come pick it up. He also needs to be caught up (plus possibly some storage fees if he hasn't been paying for awhile) before you let him pick it up, IMO.

I once had a verbal progress payment agreement with a contractor who was enclosing my carport into a garage and putting a new membrane roof on my flat-roof 10X12 shed. He came by every Friday and presented me with an itemized bill for work and materials from that week and I wrote him a check.

[Porsche-O-Phile]

Do you not have a mechanics lien on the car?

[RWebb]

in some states, that is implicit

what are the terms of your WRITTEN contract with him?
(PLEASE, don't say there isn't one!)

generally, you cannot neglect his property - i.e. stick it out in the weather and let it rot

you CAN usually charge for storage & can certainly stop work

what oral conversations have you had so far?

what written notes have you sent him beyond the contract?
- i.e. "hey, Mr. Smithers - Great news! I have your car 50% done. But, just a note - I need a progress payment of $xxx before going any further."

[KevinP73]

Originally Posted by Porsche-O-Phile

Do you not have a mechanics lien on the car?

No lien and it's not likely I would do one on this project. I'll kick the job out before I need to do that.
Payments are scheduled at milestones as opposed to time line.

[Heel n Toe]

Even if you had to move it outside the shop (given that you have a secure area to put it in) you could put a tarp over it secured with bungee cords to protect it.

[tabs]

What kind O 911?

Depends how up front the guy is...times are tough and alot of people are hurting

He should at least pay for what you have done

[sammyg2]

In business, I've found it much easier and productive to be open and honest to customers, both internally and externally.

Call this guy up and be honest, kind but firm. Explain to him your concerns. explain to him the problems that his tardy payments are causing, and work with him to find a solution.
Maybe a monthly Payment contract, maybe do the work in stages where he pays, you do some work, he takes the car until he saves some more, then take it back and do some more work. Be creative to try and find a solution you are both OK with and PUT IT IN WRITING.

If he refuses to help find a solution you are both happy with, or if he agrees and then joneses on you, then get harsh.

Be aware that a happy customer tells one or two people, an unhappy customer tells everyone.
Human nature is such that we don't want confrontation with customers. We don't want customers to be unhappy. But if you are open and honest and work WITH HIM to find a middle ground that works, there isn't any confrontation or hard feelings. it works, I do it on a daily basis.

I've said things like, "we both want this to work out great, so you probably want it to go this way, right?" The answer is almost always "of course" even if it wasn't the way he was thinking.
The way we talk to customers is a business tool and reminds me of a tool in the tool box. Use it right and you get good results. Use it wrong and you break stuff and bloody up your knuckles and end up using all kinds of swear words and break a window when you throw the tool and your wife thinks you are nuts and your neighbor asks what the heck was that all about the next day and your kids avoid you for a while ............. well you get the picture.

Note that last part was humor to reinforce my point. I don't do things like that.

[rnln]

I guess I don't understand the detail. Isn't it usual that mechanic finish the job then write the bill. Customer then pay the bill in full?

[fastfredracing]

I run into this all of the time in my shop as well, I alwalys try to get payments as large parts of the job get done, or at "milestones" as you called it. I would just simply call him, ask him what his intentions are, and tell him what your intentions are. He may be in a stituation , where he is out of money, and in that case, I would kindly ask him to find his own storage unitll he is ready to move on to completion.
People always run out of money , or loose interest when their car is in the middle stages of an overhaul,/restoration, they are shelling out money hand over fist, and to them looks as if the project will never get done .
I have a similar car in my way right now. All I need is $1500.00, and I could finish up in two days, but I am not the bank, I am waiting untill he has the money to pay.
On the other hand , projects like this, are always nice to have around for those occasional slow times where nothing is going on, and you can use it for some filler work.
I dont mind floating my labor charges , I just hate shelling out money for parts/ supplies, and having to sit on it for 6 months.

[VaSteve]

Originally Posted by rnln

I guess I don't understand the detail. Isn't it usual that mechanic finish the job then write the bill. Customer then pay the bill in full?

Sounds like a long drawn out restoration rather than a 2 hour alignment. That kind time puts you into opportunity cost of paying jobs you could be working on. I'd be honest and ask for some more progress payments.

[m21sniper]

I would just tell him that no more work can continue until he comes up with the milestone money for what's already been achieved.

[john70t]

+1 to the above. Open, honest, and in writing is good policy.

If he wants to pay upon completion, get an agreement in writing: payment in full will be due upon completion, and storage charges added afterwards. Explain all shops do this. When the balance reaches x amount a mechanics lien will be filed, and he will lose the car through adverse possession.

However, if it went to court a problematic issue might be that there was no written estimate signed by the customer. The judge might just toss the case out and give him the car.
Itemized work hours with progress pictures are a must.

[fingpilot]

Originally Posted by Heel n Toe

Even if you had to move it outside the shop (given that you have a secure area to put it in) you could put a tarp over it secured with bungee cords to protect it.

You'd have to understand how things are in SoCal.

You leave an unfinished taco in a window sill, and they'll smash a 4x8 plate glass window to get to it.

Leaving it outside is not an option.

[RWebb]

sammy gave you some good advice

[rnln]

I see

Originally Posted by VaSteve

Sounds like a long drawn out restoration rather than a 2 hour alignment. That kind time puts you into opportunity cost of paying jobs you could be working on. I'd be honest and ask for some more progress payments.