Crazy customer & scumbag sub contracter
Discussion
I was owed some money by a joinery company and the boss came to me and asked me to consider helping their business and invest a small amount to help them become more efficient and get a new van/tools etc. In return I would be a silent partner and get 50%.
Along with the 5k owed and the 5k I gave them my only involvement has been having my tech team generate sales leads. I have also been providing funds to purchase materials.
About a month ago they took on a job which required a small amount of building work which required the use of a sub contractor. As normal we funded the purchase of materials (around £2500) and off they went as normal.
About a week later I seen some coms with the customer who was complaining that they were not happy. I called my "partner" and told him to get it fixed ASAP as the work done by his hired help was not perfect.
He then hired a second contractor to come in and fix the first ones mistakes. The brief was to fix anything wrong and a fee was agreed.
On the evening of the repair I get a call from the "partner" to tell me the sub contractor used had decided to tell the customer the job was terrible and would need completely redone (not true). He then provided the customer with a quote, told them a lot of rubbish which caused a fight with the customer.
At this point I got involved and it was clear to see the customer was a bit mental and continuously quoted her builder father who supposedly found all these faults. I suggested she takes a few days then we could get things fixed correctly once and for all.
I am then forwarded an email from her which she demands all the work done is removed immediately so she can have the sub contractor do it correctly!
She then decided to make a payment of a 1/3rd due and said that is all she was willing to pay.
As Im not a builder Im not really sure how these things are normally delt with, I was under the impression they had to give him time to fix it correctly.
What would you guys suggest?
Along with the 5k owed and the 5k I gave them my only involvement has been having my tech team generate sales leads. I have also been providing funds to purchase materials.
About a month ago they took on a job which required a small amount of building work which required the use of a sub contractor. As normal we funded the purchase of materials (around £2500) and off they went as normal.
About a week later I seen some coms with the customer who was complaining that they were not happy. I called my "partner" and told him to get it fixed ASAP as the work done by his hired help was not perfect.
He then hired a second contractor to come in and fix the first ones mistakes. The brief was to fix anything wrong and a fee was agreed.
On the evening of the repair I get a call from the "partner" to tell me the sub contractor used had decided to tell the customer the job was terrible and would need completely redone (not true). He then provided the customer with a quote, told them a lot of rubbish which caused a fight with the customer.
At this point I got involved and it was clear to see the customer was a bit mental and continuously quoted her builder father who supposedly found all these faults. I suggested she takes a few days then we could get things fixed correctly once and for all.
I am then forwarded an email from her which she demands all the work done is removed immediately so she can have the sub contractor do it correctly!
She then decided to make a payment of a 1/3rd due and said that is all she was willing to pay.
As Im not a builder Im not really sure how these things are normally delt with, I was under the impression they had to give him time to fix it correctly.
What would you guys suggest?
You dont seem to be a very 'slient' partner...
Your 'noisy' partner needs to qet evidence of the job being complete to a satisfactory state, checked off against the origional quote, invoice the bint and chase the money. All the other stuff is noise and is designed to confuse the issue and allow non payment.
Your 'noisy' partner needs to qet evidence of the job being complete to a satisfactory state, checked off against the origional quote, invoice the bint and chase the money. All the other stuff is noise and is designed to confuse the issue and allow non payment.
Sounds like a potentially messy situation. Can't really help too much though I'm afraid!
Eric Mc said:
Does "silent" partner also mean that the business does not reveal to HMRC to whom it is paying out 50% of its profits. If it WAS intending to disclose the pay out correctly, how did it intend to do this and keep you "secret"?
Is this business a partnership or a limited company?
I read as being the common silent partner, rather than an intentionally secret partner. ie a partner who doesn't have an active role in the business. Is this business a partnership or a limited company?
Eric Mc said:
Does "silent" partner also mean that the business does not reveal to HMRC to whom it is paying out 50% of its profits. If it WAS intending to disclose the pay out correctly, how did it intend to do this and keep you "secret"?
Is this business a partnership or a limited company?
He is a limited company and right now we simply have a contract which is how I wanted it to make sure things were working out.Is this business a partnership or a limited company?
What would be the nature of any payments made by the company to you. You cannot be a "partner" (silent or otherwise) in a limited company. The corresponding relationship would be a shareholder by which means you would receive a share of a dividend instead of a share of partnership profit.
You cannot be a "silent shareholder" - especially now with the new legislation regarding disclosure of significant people in companies.
You cannot be a "silent shareholder" - especially now with the new legislation regarding disclosure of significant people in companies.
You need to consider your steps very carefully.
As it stands you could be considered to be acting as a "shadow director".
Given the apparent precarious financial position of the business you need to consider the risk of it becoming insolvent, which could be a big problem for you personally.
http://www.icaew.com/en/technical/business-resourc...
As it stands you could be considered to be acting as a "shadow director".
Given the apparent precarious financial position of the business you need to consider the risk of it becoming insolvent, which could be a big problem for you personally.
http://www.icaew.com/en/technical/business-resourc...
Edited by 4x4Tyke on Sunday 24th April 18:43
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