Register free!
Search
 
     

The Green Industry's Resource Center


Click for Weather
Reply
 
Thread Tools Display Modes
  #1  
Old 05-14-2011, 08:32 AM
AWJ Services AWJ Services is online now
LawnSite Platinum Member
 
Join Date: Jun 2004
Location: Ga
Posts: 4,155
Question about Warranties and Jobs that are not fully payed?

As the title says how would you handle a situation where you completed a job and there was a very minor price increase over your estimate when the job was completed and the customer has opted to not pay the difference. It is only a 4% increase in price and was clearly outlined in the estimate that there was a possibility of a price change. The job has a warranty.

So would you refuse to warranty the job till final paymenet?
Reply With Quote
  #2  
Old 05-14-2011, 09:04 AM
ioilyouin's Avatar
ioilyouin ioilyouin is offline
LawnSite Senior Member
 
Join Date: Oct 2009
Location: Illinois, no I do not live near Chicago
Posts: 707
You're pretty thorough, if you had it all spelled out and the customer agreed to the conditions, what's the problem? While the difference might not be worth the trouble to pursue legally, you can certainly withhold any guarantees. We occasionally get shorted on payments, they'll round down the payment to the nearest dollar, or get little dyslexic on the check. You just remember that the next time they call in, however I think you don't get a lot of repeat customers.
__________________
Happiness is a loving, caring family in another city. -unknown
Bad habbits are like a comfortable bed, easy to get into, but hard to get out of. -Anonymous
Going to church doesn't make you a Christian anymore than standing in a garage makes you a car. -Unknown
Never be afraid to try something new. Remember that a lone amateur built the Ark. A large group of professionals built the Titanic. -Unknown
Reply With Quote
  #3  
Old 05-14-2011, 10:13 AM
bobcatexc's Avatar
bobcatexc bobcatexc is offline
LawnSite Senior Member
 
Join Date: Dec 2007
Location: IL
Posts: 254
Was the price change outlined or explained in your bill the first time?

I would send another bill with the new balance explaining the overage, sounds like you had unforseen expenses covered in your contract.

Before you start threating not to warranty the work might just call and talk to them explaining the extra expenses.

I'm just curious what was the reason for the extra expense, alot of times if its minor we just eat it, now if it was a change order due to the homeowner or something major thats different
Reply With Quote
  #4  
Old 05-14-2011, 10:31 AM
Blue Goose's Avatar
Blue Goose Blue Goose is offline
LawnSite Senior Member
 
Join Date: Jan 2010
Location: St. Louis, Missouri
Posts: 448
It's standard practice in our line of work (state, county, municipality, DOT, etc.) for there to be a 10% retention of the contract price for one year of liability (warranty as you call it) we have. It's their guarantee/leverage that all punch lists will be done.
__________________
Brad


Last edited by Blue Goose; 05-14-2011 at 10:40 AM.
Reply With Quote
  #5  
Old 05-14-2011, 11:07 AM
ksss's Avatar
ksss ksss is online now
LawnSite Fanatic
 
Join Date: Jan 2003
Location: Rigby, Idaho
Posts: 6,865
Quote:
Originally Posted by AWJ Services View Post
As the title says how would you handle a situation where you completed a job and there was a very minor price increase over your estimate when the job was completed and the customer has opted to not pay the difference. It is only a 4% increase in price and was clearly outlined in the estimate that there was a possibility of a price change. The job has a warranty.

So would you refuse to warranty the job till final paymenet?

The difference with a rention from a public entity is you know you will get your money. Private work not so much.

If there is no rention spelled out and the guy is pissed about the 4% increase chances are he will come up at least 4% short of full payment. You will also have the added cost of conducting warranty should something be needed for the reduced amount.

For me it would come down to my relationship with this customer, if its either someone that have done work for or a contractor with a solid reputation that I do want to work for in the future. I would do the warranty work even if I was not yet paid in full without question. Otherwise I would be very carefully, maybe explain to the customer that to conduct warranty work the entire amount needs to be covered. Not saying I would not take care of it anyway but since money has gotten so tight, people seem to be less honest. Personally I am very tired of working for free in situations like this. Tough call.
__________________
See us at www.kaiserskidsteer.com

Proudly running CASE and Takeuchi equipment.
Reply With Quote
  #6  
Old 05-14-2011, 11:29 AM
wanabe's Avatar
wanabe wanabe is offline
LawnSite Senior Member
 
Join Date: Jan 2004
Location: So. IL
Posts: 931
Keep the warranty going and send a statment every month with 2% interest added to any remaining unpaid balance.
Reply With Quote
  #7  
Old 05-14-2011, 11:33 AM
Blue Goose's Avatar
Blue Goose Blue Goose is offline
LawnSite Senior Member
 
Join Date: Jan 2010
Location: St. Louis, Missouri
Posts: 448
Quote:
Originally Posted by ksss View Post
The difference with a rention from a public entity is you know you will get your money.
Sadly, that's not the case, especially in these times.
__________________
Brad

Reply With Quote
  #8  
Old 05-14-2011, 02:43 PM
FLCthes4:11-12 FLCthes4:11-12 is offline
LawnSite Senior Member
 
Join Date: Mar 2009
Location: N.E. Georgia
Posts: 281
No full payment no warranty. name another service or good you can short change and get a the warranty. But when I got to the extra part of the job where it was going to cost more I would have brought it to the attention of the customer I dont like surprises on pay day either way.
Reply With Quote
  #9  
Old 05-14-2011, 03:38 PM
AWJ Services AWJ Services is online now
LawnSite Platinum Member
 
Join Date: Jun 2004
Location: Ga
Posts: 4,155
The change of cost was due to an increase to supply electrical and in also in design fees. I issued the estimate based off of average cost for these items.
It is not prudent for me to have my electrician go bid on every job I bid on and since this is not new construction there is always unexpected costs and or issues that come up during work. I am very flexible with my clients but this one is not being very polite.LOL

Legally each state may differ in there laws but I appreciate other buisness owners opinions and experiences on how they would handle this.
Reply With Quote
  #10  
Old 05-14-2011, 05:49 PM
IES IES is offline
LawnSite Senior Member
 
Join Date: Mar 2011
Location: Central Indiana
Posts: 293
We don't warranty any job not fully paid for. Part of cost is warranty and they are not paying for it so no warranty. I have had this come up twice. Once the people were perfectly fine with no warranty. The other had 3 extremely minor issues come up after completion which I told them we would fix if she paid the final bill. She threatened to call the local news station so I got her the number.
Posted via Mobile Device
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump





Powered by vBulletin® Version 3.8.6
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright ©1998 - 2012, LawnSite.comô - Moose River Media
All times are GMT -4. The time now is 12:31 PM.

Page generated in 0.11135 seconds with 7 queries