Legal Question in Business Law in California
How do i get paid on services provided and no contract??
As the owner of a small electrical services company in business for 3 years and without much business knowledge, extensive work was done on a custom home which came out to approx. 100,000 dollars, and although a written proposal was made at the beginning of the job, the homeowner refuses to pay the amount owed. i will potentially lose my business because of the significant loss of money in this ''handshake agreement'' gone sour; is there anything i can do??
5 Answers from Attorneys
Re: How do i get paid on services provided and no contract??
Put on a mechanics lien on the house immediately and sue for breach of contract. Call me directly at 9619) 222-3504.
Re: How do i get paid on services provided and no contract??
your road will not be an easy one but there is light, sometimes not so bright other times blazing based upon the facts --- i have aided numerous people in the 30+ years i have practiced and helping contrctors, materialmen and workers has been a major part of my practice --- if the law is against you the court is also a court of equity and you have rights to the reasonable value of your services --- please call me at 925-945-6000 to discuss your problems if you wish my immediate opinion.
Re: How do i get paid on services provided and no contract??
We can probably help you. There is a mechanic lien procedure as well as a possible forelcousre proceedure that we can help you with. Please contact our office for consultation and review your documents. Do you have documentation for the materials used?
Re: How do i get paid on services provided and no contract??
I take it you made a written proposal which was orally accepted and never signed by the owner. In such a case you have an oral contract with some written evidence of what its terms might be, but the unsigned writing is not conclusive and may not even be admissible.
You do not say whether you are licensed. This will be the major issue in collecting. If you are unlicensed (and I assume this job was one for which a license was required) you are very much at the mercy of the court. In isolated instances courts have allowed an unlicensed contractor to sue and recover on some kind of extraordinary relief theory, but in most cases courts treat unlicensed contractors working on housing as lawbreakers, and they aren't allowed to enforce mechanics' liens or recover unpaid billings. Reimbursement for materials furnished is, however, treated more leniently, and you may be able to get paid for materials you bought.
On the other hand, if you are licensed, you have the full arsenal of mechanics' lien, oral contract and unjust enrichment weapons to bring to bear upon the owner if this is new construction. As a licensed contractor, you should know that a home improvement contract (as opposed to new construction) with a homeowner has certain requirements for written portions of the contract.
Whether you are licensed or not, it is somewhat surprising that you got to the point of being $100,000 behind on an oral agreement, especially for electrical work on a residence. That's an unusual amount! What kind of other unsual circumstances exist here? Has the owner paid other contractors? Is there a beef over your workmanship? Was there an architect? A general (prime) contractor? Have you discussed your problems with them?
I think there is more to this story, and whether you have a case or not may depend upon facts not given in your question.
Re: How do i get paid on services provided and no contract??
You must file a mechanics lien on the house. Then, if payment isn't made you can foreclose to collect. More likely than not, you'll get paid. Also, must document. If you haven't sent a final bill, you should do so itemizing all the work done and the dates and charges for each. We can help you with the filing of the mechanics lien and lawsuit. Good luck and thanks for inquiring.
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