How Do You Handle Customers Who Don’t Pay?
We’ve all heard stories about contractors who get paid, but fail to show up for the job or fail to complete it once they start, leaving their clients in the lurch. But the door swings both ways, and especially in this economy, you’re probably as likely to hear about a homeowner failing to pay a contractor as you are the other way around. So, what should you do if a paying customer becomes a non-paying customer? The video shows how one builder from the U.K. decided to settle a debt (but, we wouldn’t recommend this solution).
Update: Thanks for your comments to date, everyone-especially CindyTR for the link. Looks like our angry builder’s original “demo” video made the news. Click the link to get the back story and see an interview with the builder who called his actions both “satisfying” and “gut-wrenching.”
Here are a few things we would recommend, however, and they may just help you avoid a customer-relations problem to begin with:
- Protect yourself with a rock-solid contract
- Don’t rely on a handshake; document everything
- Use a common-sense approach to keeping jobs on track
- Know the risks and plan for them
Browse our special “Guide to Business” for more practical tips from pros.