HO unwilling to pay for roof installation, advice


#1

Hello,

I have a client who signed a contract, The work is completed, I have replaced all components listed in the approval paperwork.
Agreement/Contract states the homeowner was to pay in full the roof proceeds at the completion of build, the depreciation would be paid upon receiving the WPI8 and all supplement checks would be reimbursed to my company minus the Electrician Trade that they paid upfront. (Which I still have not received payment)

She has paid $7000 of the total claim approved $16,000, wants a detailed list of my cost, labor, materials, permit fees, you name it, and my profit. I do not feel I am obligated to give her these receipts, that would be like asking a mechanic to detail every nut and bolt he purchased, rather than just paying the bill they provided. Am I correct?

I am trying to go about this nicely to see if I can get a payment for the rest of the amount, before I make the next move.
I have two concerns - of course, that I will end up in the hole because of refusal to pay on the initial claim approved, check signed by mortgage, what is the next step, carefully to proceed to collect on this
My second is this.
I sent in my supplements, which totaled to another $8,000, the insurance will not release a check to my company for the supplement amount, it is going to the homeowner, which means that I am going to have another fight to collect the $8,000 minus the $1600 for electrician.

What do you suggest I do?


#2

She is trying to chisel you – I would suggest that you not worry too much about being “nice” and send a fairly aggressive demand letter for the balance owing. Include a copy of your contract, supplements and whatever other documents, make it clear that these amounts are non-negotiable, and the next step will be court action. I would probably place a builder’s lien at this point, and include a copy of this document as well, but this is jurisdiction dependant.

Be ready start with whatever process exists for small claims court in your jurisdiction right away – it will cost you filing fees that you probably won’t get back, but if you have a signed contract will be a slam dunk, and hopefully she will realize this and just pay.

I’ve had similar situations in the past, and was not aggressive enough right from the start; it cost me huge headaches, money, and time that could be better spent focussing on current work.

What she is doing is not nice at all, you should act accordingly. Treat her the same as you would someone who broke into your house to steal your TV, because that is what she’s doing!

Good luck.


#3

Thank you I will act accordingly


#4

This reminds me of my roof installation.
Was the HO satisfied with the $16,000 roof you installed?
Were the brand names of the materials you were installing shown on the contract?

I’m asking this because my roofing company told me that they were installing upgraded shingles on my roof, when in fact, I found out that they really installed the cheap shingles and all low grade materials that did not reflect the price they charged me. They actually double charged me for the roof.

If you charged her a fair market value for the materials you installed on her roof, why not just give her what she wants? You shouldn’t have anything to hide. Maybe she wants to know what kind of warranty she has on these materials, who knows.


#5

I upgraded the shingles, she is wanting a detailed cost and profit from me,
I’ve shown her everything she wants and gone above the insurance proceeds
to make get happy


#6

Sorry, just had to ask. I had good faith in the company that did my roof and never thought that they would install a defected roof with low grade materials while charging for upgrades. It was a family member that works for a home remodeling company that actually convinced me to break out of an agreement with a roofing company that tarped my roof during the storm. This family member told me that those storm chasers can’t be trusted. Then he went on to put the worse roofing system on my house and wants me to pay him for it and just live with it. I had to get a roof inspection to prove that it was a defected roof. I have been going through this fight for almost 6 months now. But I could not imagine not paying someone for good work. If you put on a good roof and she just doesn’t want to pay you, then you should fight to get your money. Good luck.


#7

I agree 100% with jkf. File a lien, file the case in small claims. When someone doesn’t pay their bill, they’re no longer a customer and does not deserve to be treated like one. Rather, they’re s deadbeat.


#8

If your contract was drawn up as a legally binding document, I don’t see how she can refuse payment provided there are no repairs needed. That said, I have sent picky customers my material invoices, but that’s all. It’s none of their business what I pay my guys or what my profit margins are. If she continues to be a PIA file a lien.


#9

Let her know it may cost her legal fee’s if she don’t want to work with you. That also backs them down sometimes.


#10

This is what I’ve learned, according to Texas law. This doesn’t mean I know all the laws, but these are the circumstances I’ve had first hand experience with. A lien might get you paid if the homeowner tries to sell the home in the first year. If your lien isnt filed correctly, youll end up getting sued by the homeowners attorney, or during a sell of the home, maybe the title company. Ive had this happen to me, years ago because of only one of the owners signed the contract. The other lien i was challenged on was because the State Law Notice, wasn’t in the correct location to the signature. Before you file a lien ask your attorney to send a demand letter. This lays out your position and intent to collect. The demand letter allows the debtor 30 days to pay. This procedure also allows the attorney to seek court and legal fees. If you file suit first, it eliminates the attorney fees being attached. Most debtors will pay after the demand letter. If they dont, I set up a payment plan. Better to pay an attorney $250 for a demand letter than filing suit.