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  • Results 1 to 4 of 4

    Thread: When to Cut Your Losses?

    1. #1
      jackdoom is offline Junior Member
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      When to Cut Your Losses?

      Hi All,

      Would love your advice. Here are a summary of the particulars:

      1. Signed a contract with a newly formed team for a $20K landscape job. For simplicity sake I'll refer to each individual as T1 & T2.
      2. Payment milestones are 1/3rd to start. 1/3rd half way and 1/3 at project completion.
      3. Newly formed team fell apart after payment at 2/3rds payment mark. T1 has skipped town and we believe with most of the project money. T2 has stayed on and is trying to make it right, but is increasingly pressuring us for more money. We did release $2K for supplies & salaries.
      4. It's become very apart that T2 is great at excavation, but terrible at actual landscaping. Which was T1 proficiency.
      5. The hard part of excavation is done. The retaining wall in my limited understanding is not being added with 3/4" angular rock all the way up the 3' high keystone wall. I would estimate the wall is 70% complete. T1 is also spent way to long on sprinkler system.
      6. Remaining work to be done. 10' semi circle seating bench. Drainage system from front to back. Planting of approx. 30 plants. Drip system. Lighting along retaining wall and hillside. Small water feature to be installed(customer to buy feature) and connected to water system. Sod 20' by 30' area.

      Should I just try and get the most out of him and then fire him when he asks for more money when he can't complete the job. Knowing that the work is becoming more and more shoddy or should I cut bait now and hire someone else to do it right.

      Thanks in advance

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    2. #2
      Tony&koi's Avatar
      Tony&koi is offline Senior Member
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      Just my thoughts:
      1) First, since they are newly formed, their reputation is almost 0 and filling a lawsuit on this contract might be a larger loss to your end. I know a lot of small teams or single contractor do not keep a lot of money in their bank in purpose to not pay for law case compensation. They would file for bankruptcy or change their company name - no problem for them.
      2) I would nicely try to ask them to finish their work by the agreed schedule and from what you have paid them to do. If they keep dragging or delaying, you would know they are not doing the work and just trying to take money from you.Then, i would stop paying, and "try and get the most out of him and then fire him when he asks for more money".
      I have been in similar case, the contractor says he underestimates in the contract,but he still has to pay his guys daily(even they did not finish the work as planned). I do the same "get the most out of him and fire".
      Tony

    3. #3
      Jojoartie's Avatar
      Jojoartie is offline Senior Member
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      Well, first get all info you can from them regarding the company. All identifing info, license plates on vehicles, info that his suppliers might have on him (he could be stiffing suppliers as well). I would sue for work not completed (& paid for). Who knows if this is their m.o. to try to squeeze more money from people. I would tell them they are not getting a penny more. It is his problem his buddy left with the money. You signed a contract (i hope!) with these guys and you have kept up your end. He needs to keep up his end. Ask him if he would rather complete it, refer it to another company to complete it, or go to court over it. Taking losses is part of doing business. Too bad for him.

    4. #4
      jimfish98's Avatar
      jimfish98 is offline Supporting Member
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      Looking at T1, I would see if they own property under the business name. If they do, you can sue and file what is called a Lis Pendens on their property. In some states you can only do it against real estate, other states you can include work vehicle titles. While it does not guarantee anything, it means that as long as you are in court with them, their real estate or vehicle title has a cloud on it. They will not be able to sell it or change ownership until its cleared. If they are strapped for cash and need to sell stuff, they might be willing to cut you a check to clear the cloud so they can gain income from selling off stuff.



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