Awhile back I was contacted (by phone) to bid a job on a h/c accessibility remodel. The company that contacted me is out of state, and advertises itself as a ‘handicap accessibility’ company.
Here’s the scenario: the homeowner (local to me) was a victim of a jobsite injury years ago, and as a result is permanently confined to a wheelchair. After several years, he felt that worker’s comp should have done more to make his home wheelchair accessible. So he hired an attorney, who somehow got things moving again. They did put a ramp in at his front door and back door, and a fold-down seat in the shower. And he has in-home care.
But my bid is to add wall hung lavs in both bathrooms, and move the toilet away from the shower in one bathroom. Re-do the kitchen cabinets for wheelchair access (there is none in the kitchen right now). Remove carpet and tile the floor throughout the house. And some other stuff, too numerous to list.
So W/C is paying someone to do this. The company I bid it to has been kind of secretive about who their “client” is, if its W/C, or another middleman. I told them I was skeptical about working for an out of state client, because my past experience was that they can be slow to pay, with little I can do about it.
That was all I said – I didn’t ask, but they arranged to send me 60% up front as a deposit. 30% at midpoint. And final 10% upon completion/signoff.
The check came today. I’m kinda shocked they really did it.
This can’t be a scam in any way, can it?
“…craftsmanship is first & foremost an expression of the human spirit.” – P. Korn
Replies
I'm in no way saying it's a scam, but it's very odd. I had a company call me with a virtually identical scenario only it never went anywhere, I don't recall why... I think we were too busy at the time for their schedule. Just be cautious on protecting yourself contractually since I imagine your recourse in dealing with an out of state co is very limited...
(Wondering out loud if it's one of those check kiting scams where they ask you to send back a certain amount as earnest money and then you find out their check is no good)
PaulB
http://www.makeabettertomorrow.com
http://www.finecontracting.com
Can you deposit the check and see if it clears? I don't know how it could be a scam if the check's good.
I wouldn't deposit the check yet. First make sure you have a written contract that is spelled out to the last dime and deed. Schedules, materials used etc etc. You sign it and fax it to them, they sign it and fax it back.
Then deposit the check and see if it's real.
I'll tell you what might happen is after the job is done, you have problems collecting that last payment. That's what it smells like to me.
On the other hand they might have had some problems with other contractors etc and just want to get the damned thing done and money is not the biggest issue with them. I've had that happen too.
Do the contract first though. That will protect both parties.
If I understand things correctly because of the way that the banking laws work check must clear within a short period of time (depending on it local or out of area) UNLESS the bank receives negative information.
So it is can be "cleared" with a few day, but take weeks or even months for it be returned as bad. And if though it did show cleared and you had access to the funds you are still responsible if the check later turns out to be bad.
Go speak to some "official" (somewhat higher up than the tellers) about what option there are to make sure that it is a good check.
One might be to FEDEX the check to the making bank and then have then wire the funds to you.
Now something like that might cost up to a few hundred (completely guessing here), but you could have guaranteed cash within a 48 hrs doing something like that.
That is only on the banking side. The others comments about a contract and the details of the project, including working conditions, are also accurate.
William the Geezer, the sequel to Billy the Kid - Shoe
So it is can be "cleared" with a few day, but take weeks or even months for it be returned as bad.
That's true - even if it is a certified, official, or bank check.
Some of those cases should be clear enough to anyone that there is clearly something going on, even if they don't know what. For example the money back ones.Other are not as clear cut and people do wait for the check to 'clear' and think that everything is OK..
William the Geezer, the sequel to Billy the Kid - Shoe
Read this and think how it could pertain to your situation. In your case you would be buying lumber, etc. There are other check scams out there too. Do some googleing.
Well that describes "cash back" schemes.But there have also been one for the right amount and they have gotten the car and shipped it out of country when the check is returned as bad..
William the Geezer, the sequel to Billy the Kid - Shoe
Right, but I guess the message to Huck is to make sure the check really clears before going out to buy a bunch of materials and doing a bunch of work.
I'd run the signed contract by an attorney before I proceeded.
If you don't know the name of the client, you can't verify that he owns the property.
How would you attach a lien if you are working on the wrong property?
I can't see how it could be a scam if the check clears and they send you to their clients house. Just do a good job, keep close records of everything, and don't let them jerk you around about payments. If they're happy with your services, they may have even more jobs for you.
~ Ted W ~
Cheap Tools! - MyToolbox.net
Meet me at House & Builder!
I can't see how it could be a scam if the check clears and they send you to their clients house.
That's my thinking. The consensus seems to be, Make sure the check really clears. Even if they burned me for the last payment of 10%, it wouldn't break me. As long as this check and the halfway check clear."...craftsmanship is first & foremost an expression of the human spirit." - P. Korn
CaliforniaRemodelingContractor.com
You could hold the check and ask them for a wire transaction in it's stead.View Image
"I can't see how it could be a scam if the check clears and they send you to their clients house."
the check can "clear" in 2-3 days ... then "unclear" a coupla months later.
not saying this is the case here ... but that's how the classic ebay and craigslist scams work.
Jeff Buck Construction
Artistry In Carpentry
Pittsburgh Pa
Let's get back to gasics here.
First issue is: who is the customer? If you bid it to a GC, then you should get paid by the GC. If he wants to collcet from Mickey Mouse, that's his business - but he is the one obligated to pay you.
The other 'customer' is the property where the work is done. That's who you lien if the job goes south.
I wouldn't touch a 'mystery' company. After all, who authorised the work? If the customer hasn't authorised it, you can't proceed .... and the customer would certainly know who they authorised to do the work!
It comes back to 'know your customer.' Heck, in this town there are folks who I won't work for - at any price. It's just not worth the hassles when you try to work for folks who are 'too clever.'
I second the concerns about the out-of-state company's secrecy and the possibility of a check appearing to clear but then turning up bad weeks or months down the line.
I think the idea of contacting the issuing bank directly is a good one. At the very least,even if you don't go the "have the funds wired to you" route, the issuing bank ought to be able to confirm that the account name and number are valid and that there are sufficient funds in the account, and if you fax a copy of the check, they ought to be able to confirm the signature.
In addition, google the company out the wazoo, check BBB in the location where the company is headquartered, and post the company's name here.
Rebeccah
I have a couple of simple suggestions.
1)Call WC, try to find which dept. handles this stuff and inquire about the company. You may learn something .
2)Google the company, see what you can learn.
3)Call the issuing bank branch and inquire about the company.
4) Call the HO and his lawyer ans ask the same questions.
have you met the home owner?
Been on site to measure and such?
I'd say I gotta run a contract past his attorney. He should be local.
getting a call outta the blue would make me suspicious.
Might be 100% legit ... who knows?
I'm thinking I'd run the whole deal thru the home owner.
Just like insurance jobs. I haven't done many ... but I've worked straight thru the home owner. I give my bid ... it's up to them to accept and sign the contract ...
also up to them to get the money together.
I don't care if it comes from their insurance company ... or from under their mattress.
I figure I know where the home owner lives.
Jeff
Buck Construction
Artistry In Carpentry
Pittsburgh Pa