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What to do when a customer cancel a work contract?

Hello My husband is a contractor and he was doing a remodelación in someone house . We went away for the holidays and when he came back to work to finish the job in the customer house , the customer cancel the contract because the customer decide to used on my husband employee instead of him. The customer knew about my husband trip since September and also request that he needed to leave one of his employees working so the job doesn’t stop . So my husband left one employee and unlucky that employee took over his job . The customer still have to pay some money to my husband . My question is do we have to send a letter to the customer telling him that my husband company is not longer responsable for any work that his ex employee performed from now on. Thanks and any other advice you can tell us will be so helpful Thanks very much

1 reply

Jan 27, 2020

Even if a customer ultimately cancels the construction contract, they'll still need to pay what they owe for work already performed and costs already incurred. So, regardless of future work on the job, an unpaid contractor is entitled to receiving what they're owed - and if necessary, they can pursue some payment recovery tools that can help. What's more, as hinted at above, it's a good idea to memorialize the end of the agreement. And, informing a customer that you're no longer responsible for the work because the contract was terminated and work was performed by someone else makes sense.

Tools that can help with recovering payment

For one, sending something as simple as an invoice reminder to request that the customer settle up and pay what's outstanding could be a step in the right direction. An invoice reminder is just like it sounds - a reminder that payment is outstanding. And, if a reminder can lead to payment, that might be more appealing than escalating the matter into a full-blown dispute. Of course, some times, a little more force will be necessary. Sending a document like a payment demand letter can help on that front. A demand letter lets the customer know you're serious about getting paid and willing to do what it takes to make sure that happens. Generally, a good demand letter will contain specific legal threats and set a deadline for making payment. Further, if things get particularly serious, the threat of a lien claim can be effective to get paid, too. Sending a document like a Notice of Intent to Lien will often lead to payment. Because mechanics liens have such a drastic effect on property owners, an owner generally can't afford to ignore the threat of a potential lien claim. And lastly, keep in mind that other payment claims, such as pursuing a mechanics lien, can lead to payment, too. This is true even if the claimant wasn't able to finish their project. Plus, legal claims, like breach of contract or wrongful termination, could be on the table, too. For more on filing a Connecticut mechanics lien: How to File a Mechanics Lien in Connecticut | Step-by-Step Guide.

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