Looking for a little business advice

Discussion in 'Business Operations' started by Rangr25, Jan 5, 2012.

  1. Rangr25

    Rangr25 LawnSite Member
    Messages: 44

    I have a situation with a snow account where they have signed my contract as well as another companies contract. I recieved my signed contract on October 27th and then got a phone call from one of the owners wanting an immediate termination December 1st. The guy told me that there was a miss communication in the company and they were going with another company this year. I told the guy that the contract states I need a 30 day written notice to break the contract. He responded by telling me I can just bill him compensation for breaking the contract early. So I took the month of December 2010 and billed him that for compensation since that was a (30 day pay period). Now here it is January and we have had a pretty slow year for snow in south eastern Michigan and they are not wanting to pay that bill. After they responded and said they aren't paying it I explained to them that this contract is still valid then until either A: I recieve a full payment or B: Until I recieve my 30 day written notice. So far I have not heard anything back from them since that.

    Am I going to be at a total loss here or should I keep them on my list and continue my part of the deal and just hope they pay my bill for the services I actually provide for them?
  2. ringahding

    ringahding LawnSite Senior Member
    Messages: 611

    Forget it. You won't win this one. How much snow did you plow for them?
  3. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Messages: 7,643

    Try a claim in small claims court. Even though you may not have plowed snow, there are still recoverable costs you incurred as a result of the breach.
  4. tyler_mott85

    tyler_mott85 LawnSite Senior Member
    Messages: 582

    Contact a lawyer. Have him look over the contract. Perhaps he'll just send a nasty well written letter to spook them into at least the 30 days.

    You may only break even but better than being taken for a fool.
  5. TriCityLawnCareLLC

    TriCityLawnCareLLC LawnSite Bronze Member
    from Ohio
    Messages: 1,025

    If you didn't plow any snow for them yet, forget about it. As mentioned above, you won't win this one. Did it do you any harm financially to have them on the route (i.e. do you need to be compensated for anything?) I agree that the situation bites but, should you ever wish to pick up this contract again than i wouldn't be too negative with the guy. Just my $.02
  6. BCboy

    BCboy LawnSite Member
    Messages: 62

    Would it really be worth the effort ?
    You might win but it might be worth more to write the value of the contract off as a business loss on your taxes. Ask you accountant.
  7. Rangr25

    Rangr25 LawnSite Member
    Messages: 44

    I guess mainly it just irritates me that they could'nt address this problem a little bit quicker.. Being a solo operation I had a full list with all signed contracts so I was comfortable with what I had and now that they backed out last minute and told me at first I could bill them compensation for the loss so I did. They were shocked by the bill I sent and feel they should not have to pay the amount. So the lack of communication with in that business is screwing me over majorly and they don't want to be held responsible for their mistake. Its just very frustrating to me how crappy communication is with people/places. GRRRR. With all that being said i'm not worried about getting this contract back. Its not worth doing work for a company that has too many people that have the power to sign contracts and then don't let the others know that the spot is filled. Unless of course the price is way way high.

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