Can any one provide help with a service contract?

[Mrdarkmonkey96]

I do custom painting/airbrushing on gaming consoles and equipment, and bikes, for some side money. I recently had a problem with a customer who refused to pay the second half of his bill (I require a 25% up front to cover material costs) So he comes to pick up bike, on which I had done a opaque white under a candy blue "plasma" pattern, and he said he would take the bike home and make sure he was happy, and then come back and pay. ( que alarm bells ). I refused the offer, and havent seen him since.

to avoid future problems like this, Ive written up a quick "contract" in hopes to clear myself legally in future circumstances. I was hoping someone with experiance in this area could offer me some advice, both on how to deal with difficult customers, and the legal routes to take should they decide not to pay at all.

Heres what I have come up with so far...

Contract For Painting Services

The customer,________________, Has agreed to pay the previously agreed on price of ______, For the painting services of (my signature here). The 25% Up front payment totalling $____ has been paid on _______, and work will begin immediatly after purchase of materials. Upon completion of the services to the agreed specifications, the Customer will be able to pick up his/her item(s) after paying the remaining 75%, totalling $ ______. If the customer neglects paying, the item(s) will be held by the Painter, until the payment has been completed.

Customer signature and date. x______________ ____________________

Contracted painter signature and date. x______________ ____________________

Its not perfect, as I have no legal experience, So I kind of winged it, based on what I've seen online.

any advice or criticism is appreciated. Thanks.

[LDO]

Get a cordless sawzall. Find the bike and cut off the steering neck. Place steering neck in customer's bed while he's asleep. He'll get the message.

[Mrdarkmonkey96]

Get a cordless sawzall. Find the bike and cut off the steering neck. Place steering neck in customer's bed while he's asleep. He'll get the message.

I was tempted to do that, but after all the time I put into it, that would break my heart! The worst part is I didnt take pictures to prove I did anything. Im pretty much having to bite the bullet on this one.......

not exactly the kind of advice I was looking for, but it made me laugh pretty hard, and for that I thank you!

[Harry P.]

A contract is worth no more than the paper it's printed on. No matter how fancy the legalese, if the client refuses to pay, you have only one option: sue him. Unfortunately, the cost of hiring a lawyer and filing a lawsuit is usually more than the amount owed you. I've been self-employed since 1987, and I've found out that chasing after a deadbeat client is more hassle than it's worth.

Keep the bike and use it as a sample for other clients.

[wrecker388]

My parents had something like this back when they still owned a body shop. Customer paid for bike the first time, but scratched and brought it back for repaint. Well, they refused to pay. Let's just say my dad put a nice long scratch down the side of the tank and threw it across the street.

[Mrdarkmonkey96]

A contract is worth no more than the paper it's printed on. No matter how fancy the legalese, if the client refuses to pay, you have only one option: sue him. Unfortunately, the cost of hiring a lawyer and filing a lawsuit is usually more than the amount owed you. I've been self-employed since 1987, and I've found out that chasing after a deadbeat client is more hassle than it's worth.

Keep the bike and use it as a sample for other clients.

hmm...So in essence A contract is utterly worthless?

I thought it was a legal way to cover your rear.. I know Im not going to get anything out of this customer, but I was hoping it would provide some "encouragement" to future customers, If you know what I mean.

[Mrdarkmonkey96]

My parents had something like this back when they still owned a body shop. Customer paid for bike the first time, but scratched and brought it back for repaint. Well, they refused to pay. Let's just say my dad put a nice long scratch down the side of the tank and threw it across the street.

The body shop I had an apprenticeship for a while, had me working on a 2011 top of the line Ski-doo.. roughly 15 grand, and 6 grand worth of powdercoating, paint, and vinyls I was helping do.... He didnt pay, so the bossman told me, take it for a joy ride, and bash it up some..... Well this was in July . grass, dirt, and asphalt dont treat snowmobiles to kindly.

[Harry P.]

hmm...So in essence A contract is utterly worthless?

I thought it was a legal way to cover your rear.. I know Im not going to get anything out of this customer, but I was hoping it would provide some "encouragement" to future customers, If you know what I mean.

Any contract can be challenged in court. It's not worthless... but also not a guarantee of anything. Most people will abide by a signed contract, so it's a good idea to use one. I'm just saying that if a customer refuses to honor the contract, the only legal recourse you have is to take him to court... and the cost to do that may be more than the amount owed you.

[Mrdarkmonkey96]

Any contract can be challenged in court. It's not worthless... but also not a guarantee of anything. Most people will abide by a signed contract, so it's a good idea to use one. I'm just saying that if a customer refuses to honor the contract, the only legal recourse you have is to take him to court... and the cost to do that may be more than the amount owed you.

Would you say it would be feasible, that with a decent lawyer, you would be able to have the customer, who created the problem be forced to pay for all legal bills? I suppose it could be argued both ways, "well we would not have had to go to court if you had just payed the bill" and " well we wouldnt have had to go to court if you had just worked for free".... Thats when Being part of a large Italian family with connections to other large Italian familes comes in handy..

[slusher]

You can take him to court without a lawyer and sue him. I took a guy to court over window tint he put on my car. he did a bad job and would not fix it. Filed the case and he paid me without going to court. Sometimes seeing their name in the paper and getting the summons gets their attention. If you don't get your money then you tried...

[charlie8575]

You can take him to court without a lawyer and sue him. I took a guy to court over window tint he put on my car. he did a bad job and would not fix it. Filed the case and he paid me without going to court. Sometimes seeing their name in the paper and getting the summons gets their attention. If you don't get your money then you tried...

More to the point, if a judgement is issued in your favor, and he still does nothing, it's contempt of court, which may be a jailable offense.

It usually makes people think long and hard.

Speaking as a trained paralegal, I would strongly encourage you to pay a lawyer for an hour of time and draw up some standard rendering-of-service contracts.

What you have is a pretty good start, I think, but it should be fleshed out a little more. A paralegal service could draft up something for you to review by a lawyer, saving you quite a bit of money. You'd also be wise to have a lawyer on retainer in case of problems with workmanship, damaged property, etc.

Stick to simple language with as few clauses as possible, and make sure it's understandable by anyone with a kindergarten education, and you'll probably be in good shape.

Charlie Larkin

[mikemodeler]

Charlie is on to something here Anthony. If you don't go the lawyer route, you most likely have a local bar association that can render legal advice and guidance.

You will want to include some verbiage about having "X" number of days once the work is completed to pick up the contracted work before you can sell it. I would also advise that you take some in progress work pictures on each job to show what was involved.

[Mrdarkmonkey96]

More to the point, a judgement is issued in your favor, and he still does nothing, it's contempt of court, which may be a jailable offense.

It usually makes people think long and hard.

Speaking as a trained paralegal, I would strongly encourage you to pay a lawyer for an hour of time and draw up some standard rendering-of-service contracts.

What you have is a pretty good start, I think, but it should be fleshed out a little more. A paralegal service could draft up something for you to review by a lawyer, saving you quite a bit of money. You'd also be wise to have a lawyer on retainer in case of problems with workmanship, damaged property, etc.

Stick to simple language with as few clauses as possible, and make sure it's understandable by anyone with a kindergarten education, and you'll probably be in good shape.

Charlie Larkin

Unbeknownst to me until today, One of my teachers is a part time attorney, and he helped me fill it out a little bit. He also said he would help me out if I needed anything.

[Mrdarkmonkey96]

Charlie is on to something here Anthony. If you don't go the lawyer route, you most likely have a local bar association that can render legal advice and guidance.

You will want to include some verbiage about having "X" number of days once the work is completed to pick up the contracted work before you can sell it. I would also advise that you take some in progress work pictures on each job to show what was involved.

Ill make sure to add that in.thanks for the heads up.

[Guest]

A lot of garages around here have this sign right over the entrance and inside the building. "Vehicles can be picked up only after bill is paid in full. Vehicles left for more than seven days will incur a storage fee of $25 per day. Vehicles left over 30 days vehicle will be sold at auction to recover all fees. Remainders will not be refunded to customer."

[Mrdarkmonkey96]

A lot of garages around here have this sign right over the entrance and inside the building. "Vehicles can be picked up only after bill is paid in full. Vehicles left for more than seven days will incur a storage fee of $25 per day. Vehicles left over 30 days vehicle will be sold at auction to recover all fees. Remainders will not be refunded to customer."

That's an intersting way to do it. I revised mine to say that after 90 days the item would be sold. But I'm liking that $25 per day thing. That should dissuade anyone from any schenanigans.

[High octane]

You can sue anybody you want for anything you want, but remember ONE thing: there's a BIG difference between suing and collecting.

[Ace-Garageguy]

Do what the smart guys say and get a decent SIMPLE contract written by a competent lawyer. Then CHECK YOUR STATE LAWS regarding theft of services, workman's liens, etc. Cover your backside as thoroughly as possible, but remember the other wise advice above...winning in court is NO assurance you'll ever see a cent, but if your state has decent workman's lien laws, you MAY be able to keep the vehicle or whatever, but you HAVE TO SELL IT to recover your money, and give the balance to the customer.

You CAN NOT just keep a vehicle when the work isn't paid for without doing the legal work. If you try to, you run the risk of being sued yourself, or worse, charged with theft.

Depending on your state laws, you MAY also be able to place a lien on the vehicle even after you return it to the owner...say, like if the check bounces... and then if it's sold, computer alarm bells will go off and you just MIGHT get your money at some later date.

A contract keeps honest people honest, and gives you at least a fighting chance against the dishonest.

I also strongly advise you to get at least 50% of your labor estimate in advance, and get reimbursed immediately for any specialty parts or materials you have to purchase out of pocket.

One of the best ways I've found to get folks to pay on time is to photograph the work as it progresses, and send out a bill for the actual time you have in any project WEEKLY. State in your contract that this is how you work, and that no pay=no more work.

I speak from experience, having once been driven into bankruptcy due to a string of back-to-back no-pay deadbeats.

Edited January 16, 2014 by Ace-Garageguy

[Mrdarkmonkey96]

Do what the smart guys say and get a decent SIMPLE contract written by a competent lawyer. Then CHECK YOUR STATE LAWS regarding theft of services, workman's liens, etc. Cover your backside as thoroughly as possible, but remember the other wise advice above...winning in court is NO assurance you'll ever see a cent, but if your state has decent workman's lien laws, you MAY be able to keep the vehicle or whatever, but you HAVE TO SELL IT to recover your money, and give the balance to the customer.

You CAN NOT just keep a vehicle when the work isn't paid for without doing the legal work. If you try to, you run the risk of being sued yourself, or worse, charged with theft.

Depending on your state laws, you MAY also be able to place a lien on the vehicle even after you return it to the owner...say, like if the check bounces... and then if it's sold, computer alarm bells will go off and you just MIGHT get your money at some later date.

A contract keeps honest people honest, and gives you at least a fighting chance against the dishonest.

I also strongly advise you to get at least 50% of your labor estimate in advance, and get reimbursed immediately for any specialty parts or materials you have to purchase out of pocket.

One of the best ways I've found to get folks to pay on time is to photograph the work as it progresses, and send out a bill for the actual time you have in any project WEEKLY. State in your contract that this is how you work, and that no pay=no more work.

I speak from experience, having once been driven into bankruptcy due to a string of back-to-back no-pay deadbeats.

That is an interesting way to operate.I really don't have to worry about the weekly payment situation, as most of my jobs are done in a day or two, as I only work on small projects like bikes, snowboards, and gaming consoles. hopefully when I can get a larger shop, that's right now I'm at my grandfathers place, I'll have a paint booth and be able to do larger projects and I will definitely take your advice into consideration. my main problem right now because I don't have the cash flow necessary to purchase large supplies paint so I'm having an estimate every job individually by going to stores to find the pain today want and spending money on gas, driving around looking for their supplies and prices, and then at the last minute they change their mind

[mikemodeler]

The bigger the shop, the more reason to protect yourself as your costs WILL go up.

I suggest spending the time and money on a lawyer and run all possible scenarios past them so you are aware of your rights and how to deal with situations as they arise.

Hopefully when you are quoting prices today, you do factor in your time and expenses in sourcing supplies. Many repair shops (body and mechanical) include either a flat fee or a percentage of the bill total to cover expenses related to various supplies and you should too. Make sure you explain that the paint, clear, tape, masking paper, sandpaper, etc. all are needed and there is a cost associated with them. Much like a carpenter would detail what a job would cost with his labor and materials, you should do the same and besides, a detailed estimate looks so much more professional!

[Mrdarkmonkey96]

The bigger the shop, the more reason to protect yourself as your costs WILL go up.

I suggest spending the time and money on a lawyer and run all possible scenarios past them so you are aware of your rights and how to deal with situations as they arise.

Hopefully when you are quoting prices today, you do factor in your time and expenses in sourcing supplies. Many repair shops (body and mechanical) include either a flat fee or a percentage of the bill total to cover expenses related to various supplies and you should too. Make sure you explain that the paint, clear, tape, masking paper, sandpaper, etc. all are needed and there is a cost associated with them. Much like a carpenter would detail what a job would cost with his labor and materials, you should do the same and besides, a detailed estimate looks so much more professional!

thats how I do all my estimates. I show them previous reciepts for supplies for a job similair. But when they want custom colors, and non- basic colors I have to go to different stores to try and find it, so that is where the travel expenses occur,, and i cant bill them for an estimate..... I also add on a few dollars, depending on the size of the job, that Go towards my respirator filters, and other safety equipment.

[mnwildpunk]

More to the point, if a judgement is issued in your favor, and he still does nothing, it's contempt of court, which may be a jailable offense.

It usually makes people think long and hard.

Speaking as a trained paralegal, I would strongly encourage you to pay a lawyer for an hour of time and draw up some standard rendering-of-service contracts.

What you have is a pretty good start, I think, but it should be fleshed out a little more. A paralegal service could draft up something for you to review by a lawyer, saving you quite a bit of money. You'd also be wise to have a lawyer on retainer in case of problems with workmanship, damaged property, etc.

Stick to simple language with as few clauses as possible, and make sure it's understandable by anyone with a kindergarten education, and you'll probably be in good shape.

Charlie Larkin

being part of a non-profit garage we still charge a fee. But in the begining we where getting hosed badly from customers when they set up payment plans or whatever. We went to a lawyer like charlie said we had a

document written up. Since doing that we have only had one incident of non payment but he refused to pay before getting his car per minnesota law I think my boss said after 90 days the title and car became ours and we are selling to another customer who car had cracked block and we selling it for a whole $154 the amount of the repairs the other guy refused to pay.

Word to the wise never release things back the customer without payment unless you have a agreed upon payment plan in writing

[Ace-Garageguy]

Word to the wise never release things back the customer without payment unless you have a agreed upon payment plan in writing

That's good advice, but again, CHECK YOUR STATE LAWS as to what you can do as far as holding something or putting a lien on something for payment for work. You have to follow the law exactly to effectively cover your backside without risking getting in trouble yourself.

Here ya go...http://thompsonhall.com/mechanics-lien-law/

And... http://www.mulliganbjornnes.com/assets/files/MechLienBrochure.pdf

Edited January 20, 2014 by Ace-Garageguy

[crazyjim]

Take the issue up in small claims court. You don't need a lawyer there. I did that to the corporation that built my house in Winfield, IL. Ceramic tile grout kept crumbling out. After 3 or 4 tries the builder gave me a bag of grout and told me to fix it myself. Wrong!! Turned out they used hardly any mastic on the floor. Took them to small claims court and got a settlement of several thousand dollars. I was happy.

[Ace-Garageguy]

I also add on a few dollars, depending on the size of the job, that Go towards my respirator filters, and other safety equipment.

That's good. Real shops, mechanical or body / paint, usually have a formula they apply to the number of estimated labor hours that helps come up with a reasonable addition for these materials. Making sure you get paid fairly for everything you do takes a little more time, but you might be amazed at the amount of money you find in your pocket if you get every bit of what you deserve.

In 2004, I went in to manage a small body shop that did pretty good work but had never shown a profit. The owner, who was not a car guy, was about ready to call it quits, and brought me in as a last resort. Without increasing the number of personnel, or without doing any more cars, I was able to raise the monthly gross by 60%...yes, 60%...simply by making sure every estimate was COMPLETE, and that we got paid for EVERYTHING we did, and EVERYTHING we spent to do it.