How do you protect yourself from a customer?

[rsdoran]

Not being funny...

It happens frequently that after finishing a project, and the customer gets into the production phase, and it's time for the customer to pay the rest of the contract value, then the customer refuses to pay.
What would you do to protect yourself and your investment?
Anyone has done tricks before to force the customer to pay?

.

The only way is not have any.

BTW I am jes an old dumb country boy that trusts people, lost a quarter mill because of it. I kinda left the rat race after that.

 

[AMAZINGAHMED]

In a philosophical way

.

The only way is not have any.

BTW I am jes an old dumb country boy that trusts people, lost a quarter mill because of it. I kinda left the rat race after that.

Like computer virus programmers and anti-virus programmers, each of them tries to get around the other but none of them stops because man will not stop thinking.
If you're true then the best thing is not having a computer.
I trust people too and treat them with respect but any smart person should have a plan B.

 

[rsdoran]

Like computer virus programmers and anti-virus programmers, each of them tries to get around the other but none of them stops because man will not stop thinking.
If you're true then the best thing is not having a computer.
I trust people too and treat them with respect but any smart person should have a plan B.

The computer stuff made no sense.

All the plans in the world does not always get you paid.

 

[gas]

I have found over the years that the bigger companies sometimes are the biggest headache. General Motors still owes me $3000 from 1974.
Sometimes a project leader gets in over his head or over budget and it is those guys that get slimey about aproving payment. I have seen that quite a bit both as a contractor and an employee of the customer. I had a very good company build a well designed machine for my employer (large company)and accounting refused to pay them because there wasn't a lifetime warrenty on the valves. That was a real p****ng contest and I was in the middle.
The small companies sometimes have trouble paying but if you give them a chance to work it out you can get most of your money.

 

[ToolGuyFred]

I have found over the years that the bigger companies sometimes are the biggest headache. General Motors still owes me $3000 from 1974.
Sometimes a project leader gets in over his head or over budget and it is those guys that get slimey about aproving payment.

I was once involved in a project for Nissan Motors. Their usual terms and conditions stipulate final 5% payment 12 months after final commissioning. Due to an oversight by their project engineer, they placed an order on our terms, final 5% 30 days after commissioning.

Following training their maintenance crew (on a Sunday morning, I may add) we got a fax informing us that they refused to sign the machine off as commissioned as they didn't like my programming style. I was particularly aggrieved over this as our operations director (a control engineer earlier in his career) had warned me they were picky over this kind of thing and had given me a program to use as a template which I had followed to the letter!

I got a very hard time from our managing director (an accountant) who wanted me to re-write the software in the style requested. I spent a stressful day going through the customer requirements with our directors. They finally agreed it would cost more in my time to do a re-write than we were actually owed. I wasn't aware of the commercial terms issues until the final 5% was paid without prompting 12 months after we considered we had completed commissioning (and without my re-write which was purely a ruse - the bar stewards).

 

[Leon]

Ohio Law

In Ohio by Law is how you get your money. File a notice of commencement, request to owner for notice of commmencement, notice of furnishing, affidavit for mechanics lien, notice to lien holder to commence suit. A LIEN MUST BE FILED WITHIN 60 DAYS OF COMPLETION. All of the above is filed in the county, or city recorders office.

If you did your job right and as stated you can get your money in court. This is all part of a contract. If a lien is on a piece of property it can not be sold until it is paid.

Leon

 

[PeterW]

I was once involved in a project for Nissan Motors. Their usual terms and conditions stipulate final 5% payment 12 months after final commissioning. Due to an oversight by their project engineer, they placed an order on our terms, final 5% 30 days after commissioning.

Following training their maintenance crew (on a Sunday morning, I may add) we got a fax informing us that they refused to sign the machine off as commissioned as they didn't like my programming style. I was particularly aggrieved over this as our operations director (a control engineer earlier in his career) had warned me they were picky over this kind of thing and had given me a program to use as a template which I had followed to the letter!

I got a very hard time from our managing director (an accountant) who wanted me to re-write the software in the style requested. I spent a stressful day going through the customer requirements with our directors. They finally agreed it would cost more in my time to do a re-write than we were actually owed. I wasn't aware of the commercial terms issues until the final 5% was paid without prompting 12 months after we considered we had completed commissioning (and without my re-write which was purely a ruse - the bar stewards).

If that is their stance, then they should have issued a software standards document as part of their requirements pack, even better with standard code blocks.

Provided the equipment performed as requested and followed any specific requirements (which may have added to the quoted price), I can't see how they would be able to justify their action in a court.

I'm unsure on the original posters position as regard to the law though.

 

[ToolGuyFred]

If that is their stance, then they should have issued a software standards document as part of their requirements pack, even better with standard code blocks.

Provided the equipment performed as requested and followed any specific requirements (which may have added to the quoted price), I can't see how they would be able to justify their action in a court.

I agree but if the engineer who placed the order won't sign it off, you're stuffed - unless you want to take on a motor manufacturer and their lawyers - which small fry machine builders don't.

I have hated most of my dealings with the automotive manufacturers. I will never forget a particular Ford Motor Company site. After a difficult week's installation of a very custom-built machine tool, I was about to go home for the weekend. The Ford engineer had specified a particular type of oil-tight trunking, only made locally, only available in grey. He came to make his daily inspection. "Not acceptable to Ford, it's not green. I'll get you a tin and a brush." So from 7pm to 9pm on a Friday evening, 200 miles from home, this guy had the software/commissioning engineer painting his d@mn trunking with a brush. Got home at half past midnight and never forgiven the man.

 

[gas]

That was sort of the problem that I had with Buick division. I was small and starting up and to sue a large corp in another state would cost more than I was owed. They knew that so I was screwed.

I've never bought another GM car or truck.