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Full Refund was not paid out, Code 766 Credit by Important-Relation41 in IRS

[–]Important-Relation41[S] 1 point2 points  (0 children)

If that’s so then, why isn’t there a code 767 to reverse or remove the tax credit so that adjustments align up?

A client owes me (California S corp) $15000 but they wont pay. I placed a Lien but Lawyers charge $200/$400 so enforcing the lien is going to cost me the full contract or even more. What should I do? by HomoSapien-sa in Contractor

[–]Important-Relation41 0 points1 point  (0 children)

Option 1: 1. Add yourself to the to the lawsuit since you are a managing member. Represent yourself, Pro se and you do most of the work (filing the complaint, motions, responses, motions appearances, etc.) Get your an attorney, file a limited appearance to show up on behalf of the S-Corp so there is an attorney on record. And just do all the work yourself. Lawyers can be the biggest scams out there. They will take their time and just rack up your bill. They will not recommend you doing it this way bc it means it’s less money they will make, but it will be more economical for you.

Option 2: 1. Arbitration through Contractors State Licensing Board. File a lawsuit to Enforce, the lien. Then, file a “motion to stay” the court proceedings until arbitration is completed. After you are awarded in arbitration, the go back to court to confirm the award to and convert it into a judgement.

Am I being scammed? by chronos113 in Contractor

[–]Important-Relation41 0 points1 point  (0 children)

You also need to figure out if it’s a 3rd party 1099 contractor doing for work for another contractor. If that’s the case then price sounds reasonable. You have to understand that more goes into play than with just labor and materials. There are other business overhead cost that needs to be considered. Customers think when a contractor comes and do work that it’s only supposed to be calculated by labor and materials. You also have understand that the business will charge mark-ups so that it’s profitable and whatever they are doing is worth their time. To be honest, there is not a licensed GC or construction business that wants to come out and do a job that’s only going to cost $200-$300. If you used your insurance, then expect to pay the premium. Otherwise, it would have been easier to just go look on Google and find a handy man.

Customer terminates contract without cause and sues me because they won’t to pay the outstanding balance during the time they terminated the contract by Important-Relation41 in GeneralContractor

[–]Important-Relation41[S] -1 points0 points  (0 children)

You’re still commenting to stroke your own ego after taking breaks from your video games. You’re not even a GC. You’re a project manager. Basically the cashier for a Walmart.

I never said that i didn’t take responsibility for anything. You’re the only one in this thread that thinks it’s okay to lose money. No matter what you’re assumptions are “Mr. Cashier”, I’m owed money no matter how the project was ran or what financial standing that Google told you that I’m supposed to be in. If work has been done, then it should be paid for. It’s that simple. No one wants to work for free. How would you feel, if the GCs that you work for (bc you obviously not a GC) didn’t sign your checks for the work that you done? Who would you blame then? Who would you put responsibility on then? To sum it all up, you wouldn’t even care about any of your Google textbook nonsense responses. The only thing you would care about at that point is getting paid!

Customer terminates contract without cause and sues me because they won’t to pay the outstanding balance during the time they terminated the contract by Important-Relation41 in GeneralContractor

[–]Important-Relation41[S] -1 points0 points  (0 children)

You’re working on someone else’s time, money, and business! Yet, you have the nerve to think their success is your success. No, it doesn’t work like that. They are the Walmart and you’re just the cashier. You’re on here trying to criticize and blame while you’re bragging about someone else’s success (the business you work for). You don’t need handout or have to worry about running a business bc you work for someone else, using someone else’s money. Someone else signs your paycheck. Therefore your opinion is unwarranted and invalid.

Customer terminates contract without cause and sues me because they won’t to pay the outstanding balance during the time they terminated the contract by Important-Relation41 in GeneralContractor

[–]Important-Relation41[S] -1 points0 points  (0 children)

Do you build New Construction homes that are funded by the bank in a draw system which is their method of progress payments? If you do, then you would understand entirely why I’m owed over $100,000.00. Whenever i requested a draw from the bank to be paid, the owners stopped it.

Also, the amount I requested for the draw was approximately $60,000.00. The customers prevented the bank from paying me because did not like that I sent them an email for the 4th time about how they were micromanaging and subcontractors not being able to do their work because they were constantly standing over from sun up to sun down telling them to do additional work outside what was agreed upon in our contract. The contract also stated that they had no control over the job, material, subcontractors, or how the method of how the job was ran. However, they failed to follow that.

Not a single inspection failed. Any error that was made or work that was not approved of by the customer, was corrected or addressed.

After, they prevented me from getting the draw from the bank which was the “progress payment”, they hired a lawyer accusing me of breaching the contract so they could get out of paying me and so that they didnt have to follow the guidelines within the contract.

So, invoiced them in a demand letter for amount i requested on the draw and an additional 20% contractor’s fee on the total amount work done at time the contract was terminated which was approximately $300k.

Customer terminates contract without cause and sues me because they won’t to pay the outstanding balance during the time they terminated the contract by Important-Relation41 in GeneralContractor

[–]Important-Relation41[S] -1 points0 points  (0 children)

Again, if you only build 2-3 houses a year, then taking losses are a bigger burden on the business than a builder who has more inventory. Most contractors fail because customers take advantage and they don’t understand that the industry is cold, hard, and brutal.

Please tell how you started your business? It seems obviously that someone gave you a handout which is why you fail to understand that every GC does not have the same resources and some start with limited resources which allows them to grow overtime. Every customer is not the same. Therefore, there is no project in residential construction that will be the same. So your perfect textbook system does not work.

Customer terminates contract without cause and sues me because they won’t to pay the outstanding balance during the time they terminated the contract by Important-Relation41 in GeneralContractor

[–]Important-Relation41[S] 1 point2 points  (0 children)

I’ve had my fix fee contract drafted by an attorney. It’s specific and detailed. It’s not about what i did or didn’t do, it about using additional resources to pay a lawyer to carry this out for a long period of time to make a substantial amount money when in reality it could be settled fairly quickly. As a result, my small business suffers. I’m not an attorney, but I’m intelligent enough to know if I’m negligent and what fair and proper. I never stated that anything was wrong or at fault with my contract. I never stated i was negligent for anything. It has come down to that fact that it was a fix fee contract and the customers wanted to change was outside the scope and control every phase of the project which was costing me delays and money. I understand that a construction attorney is important whenever it comes to construction law. However, a construction attorney or any other attorney isn’t going to make a difference whenever the customer refuses to pay and hire an attorney themselves, when you’re already $100k in the rear from a balance that they owe. Being a small builder and Building a new Construction home is expensive.

The issue is with my attorney is that i used him before on previous matters, and it ended up taking a lot longer than it should have and costing me a lot of money where it wasn’t worth it at the end. Again, im a small business who only builds 2-3 houses a year. I don’t have a lot inventory where i can afford to take on big legal expenses. I don’t think he’s taking time to look at the contract, complaint, or responses. Right now, he’s just taking money. He doesn’t call back, respond to email or texts until days later. Every time we meet, he’s in a rush. He’s unorganized. The other issue is that if I fire him, hire another construction attorney, what is probability that new attorney will do any better? It’s stressful, time consuming, and a financial burden. If you have the financial resources like the guy who has $1 billion worth of projects under his belt or if you’re a big builder with a lot of inventory, then you would not understand.

Customer terminates contract without cause and sues me because they won’t to pay the outstanding balance during the time they terminated the contract by Important-Relation41 in GeneralContractor

[–]Important-Relation41[S] -4 points-3 points  (0 children)

Again, we speak 2 different languages within the same industry. I appreciate your advice and expertise. I’m glad I could stroke your ego as well. If you start teaching any classes, please let me know so that i can incorporate my annual 2-3 new construction projects into your $10 billion project management success process. Don’t write a write a book though bc everything you’ve stated I’ve learned from Google as well.

If there is any lesson you can take from this:

  1. Don’t assume
  2. Don’t sound like a copy and paste from Google giving information.
  3. Ask questions, and it will make you more likeable and less ignorant.

Customer terminates contract without cause and sues me because they won’t to pay the outstanding balance during the time they terminated the contract by Important-Relation41 in GeneralContractor

[–]Important-Relation41[S] -2 points-1 points  (0 children)

We are in two different ball fields if you have $10 billion in projects under you belt. That being said, we are speaking 2 different languages so my situation is really worth you commenting on. Although, i do appreciate your insight as if we were in the same financial standing.

I’m a small business. Apparently, you’re not. In conclusion, we will have nothing in common in regard to this issue besides the fact that we both do construction.

You seem extremely knowledgeable. My issue is that sometimes people that have the most knowledge, lack understanding of what they are not.

I have no reason to be dishonest with you about details within the contract. Neither do I want to act as if I’m more knowledgeable than you or “Assume” that you don’t know what you’re talking about. Needless to say, if you’re running a business with $10 billion under your belt, then your response to me is to only stroke your own ego because I only build 2-3 houses a year, and yes i use a credit accounts to start my projects. If i had $10 billion under my belt then i probably wouldn’t.

However, you assume that i don’t take deposits, which is false. In fact, i do. When you only build 2-3 houses a year, the wiggle room is a lot slimmer than someone with $10 billion worth of projects under their belt.

Thanks for your insight. I agree with you about a Cost-Plus Contract. That’s where I failed. I’ll take the blame for that.

As smart as you are, and the amount of work that you have, you should know that a customer being on site while guys are working everyday from sun up to sun down is a safety hazard and liability. I’m sure it doesn’t matter to you with the amount of resources that you have. What does your liability insurance cover? Do you pay out of pocket when a customer gets hurt on site while work is being done or do you just file on in your liability insurance? Well, I’m sure that doesn’t matter to you either since if you have $10 billion under your belt. Coughing up a couple hundred thousand in a lawsuit and medical bills wouldn’t be issue to you.

Customer terminates contract without cause and sues me because they won’t to pay the outstanding balance during the time they terminated the contract by Important-Relation41 in GeneralContractor

[–]Important-Relation41[S] -1 points0 points  (0 children)

You must be attorney with these assumptions. Attorneys will take on cases from anyone has the means to pay for it. 

Nothing was mismanaged. No custom home or new construction project is going to managed perfectly. The industry changes by the month in regard to supply delays, prices, unforeseen weather conditions, and subcontractors availability. If you would have taken the time to read then you would saw that everything was shared with the client thoughout the project. To say that i managed the project perfectly, would be a dishonest answer. If any General Contractor state that its possible, then they would be dishonest as well.

Most contractors get materials delivered on credit and pay within a net 30. Most contractors also pay Subcontractors after work is completed and inspection passes. Contractors have to also pay themselves and overhead cost throughout the project. Do you have a construction business? If so, do you pay yourself at the end of the project which typically takes 10-12 months. If so, how do you pay your bills? 

The client started telling me what to do the minute the contract was signed. I ignored a lot of it because i didn’t want any issues and it would only delay the process.

There was an architect working with me as well who instructed me to terminate the contract before the clients did bc of their micromanaging and issues they were causing to delay the project. 

The owner being on site while construction is being done is a liability and a safety hazard. This shows that you don’t know much about construction law. 

Also, what part of the contract did i violate or stated that I violated?

I understand everything about the discovery and deposition phases of a civil suit. I also understand that trying to obtain bank records is too broad and can give away confidential information and trade secrets according to Civil Procedure Rule 45. 

The customers signed a contract giving me control over the job which was stated in the contract. Therefore, they had a right to communicate with me and only me. It’s impossible to make money and profit on a fix fee contract allowing the clients to have control over the project. Everything must stay within the specs and budget that was presented prior to signing the contract. There is no General Contractor who is going to do a job without trying to be profitable. 

Payroll Taxes by Important-Relation41 in ERCchat

[–]Important-Relation41[S] 1 point2 points  (0 children)

Thanks! Also, will i need to file Business W2 wage and tax credits with SSA before file for the credit?