SinStrucEng
Structural
- Nov 11, 2022
- 66
Good day everyone,
Looking for opinions and experience-based feedback from other engineers regarding an unfortunate situation that has arisen. We have a non-paying client that has refused to settle their bill. Fortunately, this is a first for us. The bill is truly minor (~$1,500), but has been overdue since May. The scope of services was for the structural design of specific elements on a custom home. We have completed our scope of work, but the client is adamant that they will not pay until we provide additional detailing pertaining to fire separations and insulation (there are three suites in the home - it is for a large family with in-laws, grandparents, etc.). These services were not included in our scope nor were they priced.
To date the client has:
1) Disappeared for weeks on end only to return out of the blue;
2) Emailed and confirmed in writing that they would pay by a certain date (and then proceed to not pay);
3) Argued that cheque, EFT, or Interac e-Transfer are not convenient methods of payment;
4) Asked if we could waive taxes if the bill is settled in cash (this query was also sent to us in writing via email);
5) Threatened us with legal action for "delaying their project" and threatened to submit a complaint to our licensing body.
We have refused to proceed with any work or project support until their bill is settled. We have also notified our licensing body's (PEO) practice advisory team of the situation.
Per our professional practice guidelines, a number of other engineers and firms have contacted us asking about the project, and the situation, as they've been approached by the client to take over the project. We have been truthful and advised them of the situation in full. To date all of the engineers/firms have notified us that they have declined to work with the client/take over the project due to the situation, admitting that they share concerns of non-payment.
Question - Short of small claims court, what would you folks do? Is there something else that we should be doing in the meantime? Should the AHJ (municipality) be contacted and advised of the situation? Any risks or concerns that stand out? We are frankly OK with leaving the money on the table and walking away but obviously want to ensure safety and prudence are respected.
Thank you in advance.
Looking for opinions and experience-based feedback from other engineers regarding an unfortunate situation that has arisen. We have a non-paying client that has refused to settle their bill. Fortunately, this is a first for us. The bill is truly minor (~$1,500), but has been overdue since May. The scope of services was for the structural design of specific elements on a custom home. We have completed our scope of work, but the client is adamant that they will not pay until we provide additional detailing pertaining to fire separations and insulation (there are three suites in the home - it is for a large family with in-laws, grandparents, etc.). These services were not included in our scope nor were they priced.
To date the client has:
1) Disappeared for weeks on end only to return out of the blue;
2) Emailed and confirmed in writing that they would pay by a certain date (and then proceed to not pay);
3) Argued that cheque, EFT, or Interac e-Transfer are not convenient methods of payment;
4) Asked if we could waive taxes if the bill is settled in cash (this query was also sent to us in writing via email);
5) Threatened us with legal action for "delaying their project" and threatened to submit a complaint to our licensing body.
We have refused to proceed with any work or project support until their bill is settled. We have also notified our licensing body's (PEO) practice advisory team of the situation.
Per our professional practice guidelines, a number of other engineers and firms have contacted us asking about the project, and the situation, as they've been approached by the client to take over the project. We have been truthful and advised them of the situation in full. To date all of the engineers/firms have notified us that they have declined to work with the client/take over the project due to the situation, admitting that they share concerns of non-payment.
Question - Short of small claims court, what would you folks do? Is there something else that we should be doing in the meantime? Should the AHJ (municipality) be contacted and advised of the situation? Any risks or concerns that stand out? We are frankly OK with leaving the money on the table and walking away but obviously want to ensure safety and prudence are respected.
Thank you in advance.