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How roofing contractors can make sure they get paid
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Your roofing crew completed the roofing project as contracted. But now, your roofing customer is dragging their feet on payment. Whether it’s a homeowner or a company refusing to pay for residential or commercial roofing or construction, know your legal rights and take the right steps to get paid.
Tips to help roofing contractors deal with difficult customers:
- Reach out to the customer directly and discuss any concerns they may have about the work. Try to resolve the issue and agree to a payment date.
- If the payment doesn’t arrive as agreed, send a reminder invoice.
- Still no payment? Escalate things by sending a formal demand letter.
- If your customer is open to it, you can go through mediation to resolve payment out of court.
- If you decide to take legal action and go to small claims court, ensure that you have proper documentation of the contract, invoices, and any communications regarding the project.
Know your legal rights to protect yourself and your roofing company:
- Always have a written contract with detailed specifications for each job, including the scope of work to be performed and the payment schedule.
- Comply with local building codes, carry adequate liability insurance, and clearly disclose any potential risks to customers.
- Familiarize yourself with the Construction Act in your province. It’s designed to protect you and your company. View Ontario’s Construction Act.
- Understand Prompt Payment Provisions in the Construction Act. They outline the rules for how and when parties should be paid.
- If a customer isn’t paying, you can register a lien on their property to seek payment. Learn more about Lien Rights.
- If you still haven’t received payment, you can request Adjudication for a payment dispute under the Construction Act. Learn more about Ontario Dispute Adjudication for Construction Contracts.
If you want to learn more about your legal rights or have legal questions, your Gibson Representative can recommend specialists in construction law you can speak to.
For more ideas on how to avoid common legal problems and get an edge on your roofing competition, check out this article: How to avoid common legal problems for roofing contractors.