This is why contractors get deposits .

[Matthew Paul]

I have a basement to gut and remodel . Contract signed , permits in hand and right on schedule . Called the customer to tell him we would be there this morning ( right on schedule) .  He tells me he has been busy and hasnt removed all the "stuff" from the basement . You can work around it or " You can start next week "  I go over to the job with a sub to see whats left , nothing has been moved .

I had to explain to him "No that doesnt work .that things are scheduled , basement was to be empty of belongings per contract   dumpster , materials delivery , plumber and electrician are set up . 'We are not packing his stuff up and moving it to a storage unit. 

So I tell him to read the contract . I will be charging him  for  delays and lost time caused by him  . And the finish date will be extended by a month , since we have other contractual obligations . 

He isnt very happy and demands that we move furniture if I am billing him . " Sorry thats not in the contract , and we arent insured to move and haul furniture "    Please refer to the contract , all that is covered including the extra charges . 

The gentlemen says a few choice words to us . And he says I am fired , and wants his deposit back .  I tell him thats his choice , please put that in writing and sign it . And I will return  what he is due as per the cancellation clause in the contract . A few more choice words were thrown at us , he canceled the agreement in writing and demanded a check on the spot .   Sir  please refer to the contract .

In the contract it states that if the customer unilaterally cancels the contract the deposit is kept by the contractor as liquidated damages . 

Now , I had 12 hours with design 3 trips to the house , permit fees , 6 hours lining up subs , materials , etc . Four days of work lost for 3 guys plus myself . ( lucky we could move the next job up a week ) plus the lost profit for the lost time (not the entire job) . Restocking charges for materials . 

Now after I ran my numbers after losing this week and retaining the deposit I will be in the negative by a little . ( and yes my help gets paid its not their fault and they have bills) . I am sure I will hear more from this , but everything is in the contract as per Maryland state law.  I will have to cancel the permit (no refunds) .

This is only the second time in 30 years a contract has been canceled . And this is why we use a contract .

[Mike Cumbie]

It works the opposite too. Gave a $2000 deposit for a furnace install in October. Had someone else install last week because of radio silence. Now I have hoops to jump through for a judgement ill never actually receive. 

The guy actually did 3 other installs for me as well as ones for other agents I know. Guess he finally fell behind. If I had stiffed him then he could have put a lien on the property easier than ill ever be whole. Its business risks either way.