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Verbal Contract

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ml422

Junior Member
What is the name of your state (only U.S. law)? Michigan

I was verbally hired to install a metal roof on a commercial building. The man who hired me was a partner with my dad in a business venture a couple years ago.

He had hired me from time to time last year for some small projects.
This one, he stipulated the amount for each building (there were two) and that I needed to provide fasteners and caulk.

I billed him for building one at its completion. He paid.

I billed him for building two and there is something shady beginning to lurk around this agreement.

He has been elusive and non-committal in communicating with me. The amount owed is in excess of 14,000 dollars.

What are my strategies?
 


Andy0192

Member
I billed him for building one at its completion. He paid.

I billed him for building two and there is something shady beginning to lurk around this agreement.

He has been elusive and non-committal in communicating with me. The amount owed is in excess of 14,000 dollars.

What are my strategies?
How long ago did you complete the job? How long ago did you bill him? What were the payment terms?

Does the customer own the buildings ?
 

ml422

Junior Member
I finished the job a few weeks ago.
The payment terms set up were "I will pay you when I receive the money for the billing"

He was a sub-contractor for the project. He was hired by a General, who was hired by the owner of the building.

My first building invoice saw a week and a half turnaround.
 

tranquility

Senior Member
Are you licensed? Is the sub who hired you licensed? Is the general who hired the sub licensed? Was notice of the work you were doing posted on the property? Did you buy any supplies? If so, what would you say the relative value between the supplies and the labor? What was the total value of the supplies? Have you read the rules regarding the FUND and do they apply to you?
 

ml422

Junior Member
Everyone is a licensed and legit business.

I was hired to only install. I supplied my fasteners and caulk.

No posting of the work I was doing, although OSHA did show up on site one day. I spoke with the rep at length and they have my info on file as having been on site working.

The guy I worked for has a contract with the GC. The GC has a contract with the owner.

I specialize in the metal roofing, and I had a rapport with this guy that he had come through and paid me in the past. So, I chose to not put anything on paper.

I don't know what FUND is. Is there somewhere I can read about this?
 

tranquility

Senior Member
The FUND is a state run fund for Michigan for where the homeowner pays the contractor who later stiffs the sub and the FUND subrogates pays and tries to collect. There are other things the fund pays for too. However, if you didn't post, I don't believe you can either file a lien or utilize the FUND.

Because your main purpose was the installation and not the item and the cost of the "goods" is probably less than $500, you can have a verbal contract (absent specific contracting statutes in the state for certain levels of payments). It looks like you have a simple lawsuit against the person who hired you unless there is such a contracting statute. If so, your remedies lie there.
 

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