Non payment and sign off

[Darkwood]

@oscar21
Yes, agree it's not an ideal world but the post was cautionary and advisory, the certificate is part of the work and until it is handed over there is a position for the customer or company to deny payment regardless if they are dragging their heels for other reasons, like I said it sometimes does work but you are on the wrong side of the legal system in doing so hence be very cautious of using this method, regardless of why the customer/contractor isn't paying all they have to say to a judge on the day is that you have not completed the work as you have not handed over the certificate thus they have not paid, the court will likely side with them as you didn't follow procedure, the few times you are in a position to not complete the work or down tools is if you're in interim payments for the work and completion is not a requirement to receive the stage payments, this is a situation of a few where you are legally justified to take such actions.
There are other methods but require a paper trail of the appropriate steps been taken and forewarnings where you can enter the premises and reclaim your materials, again the legal system allows certain time for responses and chances to pay, this probably doesn't help either which is why we see so many in the trade in this situation especially when they start up, like I said it is a frustrating curve to go through and I have full sympathy as been there, done that and got the sticker.

 

[oscar21]

I got the attitude from my old boss, cant remember (years and years ago) the details but some customer rang up ranting and raving about how he wasn't going to pay for this and that after one of the electricians had been round to do some work. My boss just put the phone down on him mid rant and turned round to me and said "we won't ever be going back there again", I said what about all the work we have done and he just shrugged his shoulders and said "not interested". He was of course in a position to be not bothered about a couple of grand or whatever it was though, he used to walk round with a Netto carrier bag full of cash after the days shop takings.

I always though from that day forward, I need to be just like him and have enough money tucked away not to let idiots affect my life in any way.

 

[LukeD]

Let's be upfront here, although I understand your frustration here there are certain directions you should not go down, although it may work in some cases it could come back to bite you on the rear hard.

You cannot use the issue of a completion certificate or similar as a bartering tool for payment, works are not formally completed until the cert' has been issued and anyone clued up can refuse payment until you issue it, you are going down the road of blackmail for payment and that does not hold well in court so be cautious regardless if you have any agreement in place, if your contractor takes this route of refusing until you issue it can be several monthse you see any money which often you financially lose out on in court appearances, solicitors fees etc.
Ensure work and payment terms are in writing, it is always best to agree a 28 day payment terms when subbing to another contractor, this gives room for admin work and any queries to be resolved, if you are working direct for the client/customer then payment terms can be agreed on completion and issue of certification which is common in domestic work direct with home owner.
I would recommend if you have no adequate cash flow to wait for payment to work with your bank, they too will want your business to be a success and they often open you up to overdraft allowance in case you need room to build up some financial resources.

I went through this myself when I started and wish I had the experience of what I know now, contractual work is usually as mentioned is open to a 28day payment window as you do if you have an account with your wholesalers, be cautious though always find out the payment terms in advance if working for another company and not direct with a member of the public, many mid to larger firms do payments anything from 4 to 12 weeks, that has caught me out a number of times with new customers, there is nothing more embarrassing than asking to be paid earlier after the matter.

True ...its not a good idea to withhold

 

[LukeD]

I got the attitude from my old boss, cant remember (years and years ago) the details but some customer rang up ranting and raving about how he wasn't going to pay for this and that after one of the electricians had been round to do some work. My boss just put the phone down on him mid rant and turned round to me and said "we won't ever be going back there again", I said what about all the work we have done and he just shrugged his shoulders and said "not interested". He was of course in a position to be not bothered about a couple of grand or whatever it was though, he used to walk round with a Netto carrier bag full of cash after the days shop takings.

I always though from that day forward, I need to be just like him and have enough money tucked away not to let idiots affect my life in any way.

Ive seen this work also well..... Customer starts to worry about "radio silence " and them still having some money they owe you .Some people get a bit paranoid about "what is going to happen"

 

[DPG]

Ive seen this work also well..... Customer starts to worry about "radio silence " and them still having some money they owe you .Some people get a bit paranoid about "what is going to happen"

What is going to happen?

 

[oscar21]

What is going to happen?

In the mind of someone lying there wide awake at 3AM, just about anything.