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Hello, there. Anthony from Contractors Debt Recovery with yet another award-winning instalment
for you. I’m going have a bit of a yawn now about home building because we’re seeing
quite a bit of this over the years. And what is amazing is the consistency of the stories
I see coming out of home building and I want to focus on just a few issues for you people
who are doing residential work and where your customer is Mr. and Mrs. Smith. Now the biggest
problem is contractors not keeping this as a business relationship. I think it’s because
you’re in a residential setting. You’re not on a big project. You’re at a house.
Mrs. Smith is making you a cup of tea and cookies and it’s all very friendly and you
start to become friends. And when you become friends you start to do jobs for free. You
start to do little just to show how nice you are. You start to buy things at trade price.
You’re not making any profit on it, etc. etc.
That’s all very fine and good. But what happened is at the end of the job Mrs. Smith
assumes her true form which is a blood sucking beast from hell. And Mr. Smith gets his brother-in-law,
the lawyer, to come out and chew you out and your last two payments aren’t getting paid.
And this lovely lovely couple have now got you pinned to the ground and are eating your
liver and feeding them to the passing wild life. I see it all the time. Now you need
to understand it’s a business relationship. Take the cups of coffee and tea in good grace
but they are your customer. Let’s just get that very clear. They’re your customer.
They’re not your friend and you’d not do any favours other than what’s the contract.
The contract is the agreement and that’s what you do. Now because too many contractors
allow themselves to have this friendly personal relationship. Here are the reasons for none
payment that I get coming out of residential building.
I’m getting a divorce. I can’t pay you. I’m getting a divorce. I can’t pay you
my boyfriend and I are having a fight. Right now, with all due respect to Mrs. Smith who
gives a ***. No one. You don’t. You’ve done the work. That’s the contract. I love
to hear about your personal life. Tell it to your friends. I’m just the guy putting
in the new kitchen. That’s how it’s going to be guys. Too many contractors go, she’s
going through a rough time. Maybe I won’t push for payment now. It’s not really good
form. No. It is good form. Contract says every month get paid. I don’t find any personal
distress clauses in a residential contract or department of fair trading contract. I
don’t see the divorce clause anywhere. I don’t see the bad boyfriend clause. I don’t
see the can’t see my kids clause. I don’t see any of that and I certainly don’t have
the brother-in-law is a solicitor who is going to kill you clause. None of that applies.
You just got to keep a clear head and a clear focus that you’re providing this work for
this agreed price and there’s no personal hardship clause in there. I mean you can’t
go to your client and go I’m getting a divorce. My father-in-law is dying of cancer in hospital
so I just won’t do any work for you. That’s not going to fly so why should it fly the
other way around. Now I hope I’ve made this point as strongly as I possibly can because
this is amazingly the no. 1 reasons for non payment in residential is the customer carrying
on their life story to the contractor and the contractor is eating this up. Don’t.
You have a contract, especially residential work you’re required to have a contract,
OFT contract or some kind of contract. You’re required to have it. That’s the relationship.
And if it says this work for this much money. You do the work and you get the money. That’s
it. Now I hope you’re going to start to take that onboard. If you got any queries
or questions give us a call. Our number should be on the screen and I will see you next time.
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