Cancellation policy? - Electrician Talk - Professional Electrical Contractors Forum
CLICK HERE AND JOIN OUR COMMUNITY TODAY, IT'S FREE!
Go Back   Electrician Talk - Professional Electrical Contractors Forum > Business > Business, Marketing, and Sales


Like Tree20Likes
  • 6 Post By Smileyboy
  • 1 Post By HackWork
  • 2 Post By 99cents
  • 1 Post By zac
  • 1 Post By The_Modifier
  • 2 Post By HackWork
  • 1 Post By lighterup
  • 2 Post By lighterup
  • 1 Post By lighterup
  • 3 Post By Southeast Power
Reply
 
Thread Tools Display Modes
Old 04-08-2019, 11:10 AM   #1
Senior Member
 
Join Date: Apr 2007
Posts: 251
Rewards Points: 216
Default Cancellation policy?

I never thought that this would be something that would be needed. But my cancellation policy finally paid off.

We were working for a contractor that won a remodel bid. After 3 walk-throughs with the customer. Finally got my deposit for the job, purchased and dropped off all the material. Told the GC we would be able to start in a day or two after he finished the demo. My guys show up to work the next day and the customer, not the GC says to stop work because they are going with another contractor.....And she would like a full refund.

Haha. Well thatís not going to happen. We charge a 15% cancellation fee. We are not Walmart.


Sent from my iPhone using Tapatalk
__________________
In Denver, Co doing Service work and Remodel all day... Love it.
Smileyboy is offline   Reply With Quote
Join Contractor Talk

Join the #1 Electrician Forum Today - It's Totally Free!

ElectricianTalk.com - Are you a Professional Electrical Contractor? If so we invite you to join our community and see what it has to offer. Our site is specifically designed for you and it's the leading place for electricians to meet online. No homeowners asking DIY questions. Just fellow tradesmen who enjoy talking about their business, their trade, and anything else that comes up. No matter what your specialty is you'll find that ElectricianTalk.com is a great community to join. Best of all it's totally free!

Join ElectricianTalk.com - Click Here JOIN FOR FREE


Warning: The topics covered on this site include activities in which there exists the potential for serious injury or death. ElectricianTalk.com DOES NOT guarantee the accuracy or completeness of any information contained on this site. Always use proper safety precaution and reference reliable outside sources before attempting any construction or remodeling task!

Sponsored Links
Advertisement
 
Old 04-08-2019, 11:12 AM   #2
Petulant Amateur
 
99cents's Avatar
 
Join Date: Aug 2012
Location: Perky Nipples, Canada
Posts: 20,336
Rewards Points: 11,037
Default

Never thought of a cancellation policy actually. How do you word it?
99cents is online now   Reply With Quote
Old 04-08-2019, 11:19 AM   #3
Senior Member
 
HackWork's Avatar
 
Join Date: Oct 2009
Location: -
Posts: 32,225
Rewards Points: 1,601
Default

I believe this is a hairy subject. I was under the impression that in many states you canít charge them for breaking the contract before work begins unless you could show a loss on your part. Something that a judge will believe.

Iíd like to hear more, this interests me.
MechanicalDVR likes this.
__________________
There are 2 types of electrician... Those who knowingly break code, and those who lie about it.
HackWork is online now   Reply With Quote
The Following User Says Thank You to HackWork For This Useful Post:
Smileyboy (04-08-2019)
Sponsored Links
Advertisement
 
Old 04-08-2019, 11:20 AM   #4
Senior Member
 
Join Date: Apr 2007
Posts: 251
Rewards Points: 216
Default

Iíll post the details of the contract after I get back to the office.


Sent from my iPhone using Tapatalk
__________________
In Denver, Co doing Service work and Remodel all day... Love it.
Smileyboy is offline   Reply With Quote
Old 04-08-2019, 11:29 AM   #5
zac
Senior Member
 
Join Date: May 2009
Location: CA
Posts: 2,878
Rewards Points: 814
Default

Quote:
Originally Posted by Smileyboy View Post
I never thought that this would be something that would be needed. But my cancellation policy finally paid off.

We were working for a contractor that won a remodel bid. After 3 walk-throughs with the customer. Finally got my deposit for the job, purchased and dropped off all the material. Told the GC we would be able to start in a day or two after he finished the demo. My guys show up to work the next day and the customer, not the GC says to stop work because they are going with another contractor.....And she would like a full refund.

Haha. Well thatís not going to happen. We charge a 15% cancellation fee. We are not Walmart.


Sent from my iPhone using Tapatalk
Normally i have my propsal as:
If you accept my proposal x amount is due... and we have a contract. I will never hold someone to it if at all possible.
I need to have in my wording something similar to yours concerning an exit fee, but not giving them licence to shop around until i start. I had a lady cancel after me buying the materials and blocking out a morning for her. Wasn't big enough to ruin my week but it still was wasted time.

Sent from my SM-G950U using Tapatalk
zac is online now   Reply With Quote
Old 04-08-2019, 11:33 AM   #6
Petulant Amateur
 
99cents's Avatar
 
Join Date: Aug 2012
Location: Perky Nipples, Canada
Posts: 20,336
Rewards Points: 11,037
Default

Quote:
Originally Posted by HackWork View Post
I believe this is a hairy subject. I was under the impression that in many states you can’t charge them for breaking the contract before work begins unless you could show a loss on your part. Something that a judge will believe.

I’d like to hear more, this interests me.
Three site visits and a material drop off, not to mention the time it takes to bid and sign documents. That seems to be legitimate loss to me.
MechanicalDVR and lighterup like this.
99cents is online now   Reply With Quote
The Following User Says Thank You to 99cents For This Useful Post:
MechanicalDVR (04-08-2019)
Old 04-08-2019, 11:37 AM   #7
zac
Senior Member
 
Join Date: May 2009
Location: CA
Posts: 2,878
Rewards Points: 814
Default

Quote:
Originally Posted by 99cents View Post
Three site visits and a material drop off, not to mention the time it takes to bid and sign documents. That seems to be legitimate loss to me.
I concur!

Sent from my SM-G950U using Tapatalk
MechanicalDVR likes this.
zac is online now   Reply With Quote
Old 04-08-2019, 01:28 PM   #8
Small Potatoes
 
flyboy's Avatar
 
Join Date: Jun 2011
Location: North East USA Treasure Coast Florida
Posts: 4,792
Rewards Points: 3,318
Default

Quote:
Originally Posted by Smileyboy View Post
I never thought that this would be something that would be needed. But my cancellation policy finally paid off.

We were working for a contractor that won a remodel bid. After 3 walk-throughs with the customer. Finally got my deposit for the job, purchased and dropped off all the material. Told the GC we would be able to start in a day or two after he finished the demo. My guys show up to work the next day and the customer, not the GC says to stop work because they are going with another contractor.....And she would like a full refund.

Haha. Well that’s not going to happen. We charge a 15% cancellation fee. We are not Walmart.


Sent from my iPhone using Tapatalk
In my view, this isn't a cancellation, this is an attempt by the "prime" to cancel a contract you have with the "GC". You're not working for the prime, you're working for the GC. You can't collect a cancellation fee from someone you didn't contract with.

BTW, a cancellation is something someone requests before any work actually commences or materials are delivered to the site. In this case, it would be a breach of contract, but only with the entity you contracted with, in this case the GC, not the prime.

We don't charge for cancellations before the day of the job. I can't recall ever collecting a cancellation fee.
flyboy is online now   Reply With Quote
Old 04-08-2019, 02:40 PM   #9
Electron Pathway Engineer
 
The_Modifier's Avatar
 
Join Date: Oct 2009
Location: On cloud 9 in Ontario
Posts: 2,568
Rewards Points: 392
Default

Quote:
Originally Posted by HackWork View Post
Iíd like to hear more, this interests me.
Do any of your suppliers have a restocking fee? Some up here are up to 25% for some items.

An no returns on pre-cut wire.


I don't see how it's any different for a signed contract to be cancelled last minute.
lighterup likes this.
__________________
Opportunities multiply as they are seized.
The_Modifier is offline   Reply With Quote
Old 04-08-2019, 02:48 PM   #10
Senior Member
 
HackWork's Avatar
 
Join Date: Oct 2009
Location: -
Posts: 32,225
Rewards Points: 1,601
Default

Quote:
Originally Posted by The_Modifier View Post
Do any of your suppliers have a restocking fee? Some up here are up to 25% for some items.

An no returns on pre-cut wire.


I don't see how it's any different for a signed contract to be cancelled last minute.
Things aren't always equal.

Don't pay for your $25 meal at a restaurant and the police will arrest you. But a customer could not pay us for $2,500 worth of material and labor and the police will tell us it's a civil matter.
CTshockhazard and MikeFL like this.
__________________
There are 2 types of electrician... Those who knowingly break code, and those who lie about it.
HackWork is online now   Reply With Quote
Old 04-08-2019, 04:15 PM   #11
Petulant Amateur
 
99cents's Avatar
 
Join Date: Aug 2012
Location: Perky Nipples, Canada
Posts: 20,336
Rewards Points: 11,037
Default

Quote:
Originally Posted by flyboy View Post
In my view, this isn't a cancellation, this is an attempt by the "prime" to cancel a contract you have with the "GC". You're not working for the prime, you're working for the GC. You can't collect a cancellation fee from someone you didn't contract with.

BTW, a cancellation is something someone requests before any work actually commences or materials are delivered to the site. In this case, it would be a breach of contract, but only with the entity you contracted with, in this case the GC, not the prime.

We don't charge for cancellations before the day of the job. I can't recall ever collecting a cancellation fee.
He didnít say he was collecting from the prime. He hasnít even pulled the trigger on the cancellation clause yet. Once the GC says itís a no go, the cancellation policy kicks in. Assuming his deposit covers the 15% thereís nothing to collect.
99cents is online now   Reply With Quote
Old 04-08-2019, 05:43 PM   #12
Can't sign em..forget em
 
lighterup's Avatar
 
Join Date: Jun 2013
Location: Ohio
Posts: 7,361
Rewards Points: 10,046
Default

Quote:
Originally Posted by The_Modifier View Post
Do any of your suppliers have a restocking fee? Some up here are up to 25% for some items.

An no returns on pre-cut wire.


I don't see how it's any different for a signed contract to be cancelled last minute.
They do here and you'd be eating the pre-cut wire.
They won't even consider taking that back
The_Modifier likes this.
lighterup is offline   Reply With Quote
Old 04-08-2019, 05:49 PM   #13
Can't sign em..forget em
 
lighterup's Avatar
 
Join Date: Jun 2013
Location: Ohio
Posts: 7,361
Rewards Points: 10,046
Default

Quote:
Originally Posted by 99cents View Post
He didnít say he was collecting from the prime. He hasnít even pulled the trigger on the cancellation clause yet. Once the GC says itís a no go, the cancellation policy kicks in. Assuming his deposit covers the 15% thereís nothing to collect.
I have one , (cancellation policy) cause people around here
some frickin wish-washy types and I thru the school of hard
knocks I've learned it's better to weed out the tire kickers right off the bat rather then get hosed after I invest into the job.

I have been burned by cancellations (stuck with materials I couldn't
take back) , but since incorporating the fee I've never had to collect it.
The_Modifier and 99cents like this.
lighterup is offline   Reply With Quote
The Following User Says Thank You to lighterup For This Useful Post:
MrsElectric (06-18-2019)
Old 04-08-2019, 05:55 PM   #14
animal lover /rat bastard
 
wildleg's Avatar
 
Join Date: Apr 2009
Location: somewhere in FL
Posts: 13,526
Rewards Points: 996
Default

cancellation is dicey, depending on the circumstances and jurisdiction.

for instance, if the client is a homeowner in Maryland, very specific laws apply, there is a grace period between contract and commencement of contract for door to door sales, etc etc. I am sure other jurisdictions have many similar consumer protection laws. Laws for commercial clients are much different and I'm sure many contracted agreements would fly. Restocking fees, mobilization, and pre construction indirect expenses are legitimate actual expenses that are reasonable and should be recovered IMO, if it is legal.
__________________
this message was sent from a dental floss farm using ZappaTalk and a pair of zirconium encrusted tweasers
wildleg is offline   Reply With Quote
Old 04-08-2019, 06:12 PM   #15
Can't sign em..forget em
 
lighterup's Avatar
 
Join Date: Jun 2013
Location: Ohio
Posts: 7,361
Rewards Points: 10,046
Default

Quote:
Originally Posted by wildleg View Post
cancellation is dicey, depending on the circumstances and jurisdiction.

for instance, if the client is a homeowner in Maryland, very specific laws apply, there is a grace period between contract and commencement of contract for door to door sales, etc etc. I am sure other jurisdictions have many similar consumer protection laws. Laws for commercial clients are much different and I'm sure many contracted agreements would fly. Restocking fees, mobilization, and pre construction indirect expenses are legitimate actual expenses that are reasonable and should be recovered IMO, if it is legal.
why is it a federal offense to order a pizza and not pay for it
but we can get it stuck to us to the tune of (usually hundreds
-not necessarily thousands) of dollars?
lighterup is offline   Reply With Quote
Old 04-08-2019, 06:16 PM   #16
Can't sign em..forget em
 
lighterup's Avatar
 
Join Date: Jun 2013
Location: Ohio
Posts: 7,361
Rewards Points: 10,046
Default

when I worked for an EC and was running the service truck , that
owner told me that if I respond to a service call and get there &
find another EC there already, that I was to fill out an invoice for
the service call fee and hand it to them...don't argue , don't respond

He claimed there is an Ohio Law that allows for this under "theft of services".
Is it tru ...I have no idea.
The_Modifier likes this.
lighterup is offline   Reply With Quote
Old 04-14-2019, 12:14 PM   #17
Senior Member
 
Join Date: Oct 2016
Location: Washington
Posts: 377
Rewards Points: 24
Default

I wonder if that is the same in Washington. Hmm.


Sent from my iPhone using Tapatalk
Drsparky14 is offline   Reply With Quote
Old 04-14-2019, 01:00 PM   #18
86 45 20
 
Southeast Power's Avatar
 
Join Date: Jan 2009
Location: Florida
Posts: 17,552
Rewards Points: 7,772
Default

We bid a job at 17k. We took a 5k deposit and started demo and then the rough.
The customer changed every single box, switch and light location and then doubled the scope of work.
We gave her an updated price of 24k.
She lost it. Complaining we lowballed the job, screwing her on changes.
She locked us out of the jobsite.
Her son calls and wants her 5k back. lol
I told her son that she owes the entire contract amount as she broke the contract.
He flips. Just like she did.
Told me I should refund her and "do whats right"
I told him to write his mommy a check for 5k and tell her he got it from ma like a good boy.
Never heard from him again.

While all of this was going on, I found out he owned an industrial park. He didn't claim the domain name. I did and forwarded to to his competitors warehouses and then some famous websites I cant mention here.

A year later someone wants to buy the domain for $300. It was him.
I countered with $1,500.
He countered with $350.
I didn't budge and got the $1,500.
Southeast Power is offline   Reply With Quote
Old 04-14-2019, 01:53 PM   #19
Small Potatoes
 
flyboy's Avatar
 
Join Date: Jun 2011
Location: North East USA Treasure Coast Florida
Posts: 4,792
Rewards Points: 3,318
Default

Quote:
Originally Posted by 99cents View Post
Never thought of a cancellation policy actually. How do you word it?
C-a-n-c-e-l-l-a-t-i-o-n p-o-l-i-c-y
flyboy is online now   Reply With Quote
Old 04-14-2019, 02:45 PM   #20
Senior Member
 
Join Date: May 2015
Location: Sacramento, California
Posts: 13,594
Rewards Points: 25,436
Default

Is the back out with the GC?

Or is it with the home owner?

Different rules apply.
telsa is online now   Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Drug test policy 3rdgen01 General Electrical Discussion 28 01-14-2018 07:26 PM


All times are GMT -4. The time now is 03:39 PM.


Powered by vBulletin® Version 3.8.8
Copyright ©2000 - 2019, vBulletin Solutions, Inc.
Search Engine Optimization by vBSEO 3.6.1
vBulletin Security provided by vBSecurity v2.2.2 (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
User Alert System provided by Advanced User Tagging (Pro) - vBulletin Mods & Addons Copyright © 2019 DragonByte Technologies Ltd.
Our Pro Sites Network
ContractorTalk.com | DrywallTalk.com | HVACSite.com | PaintTalk.com | PlumbingZone.com | RoofingTalk.com