Thread Content
Is the payment for the project going through the proper procedures? Won’t there be any payment? You should take a look at these debt collection tactics~ It’s that time of year again when collections activities increase; are you preparing to buy train tickets for the Spring Festival travel rush? Getting ready to go home for the New Year? Getting the project payment is the key. But what if we can’t get the payment for the work? Are you struggling to get your project payment back? Are you unsure whether it can be recovered, and how much can be recovered? How to get it back – is it leaving you at a loss? Regarding the project payment, both Party A and Party B have their own opinions. As the parties involved in the project, everyone has surely encountered such situations! 1. Still going through the process! 【Party A: The process is too complicated】 The payment processes in many corporate companies are extremely complex – ranging from bidding and procurement to obtaining approvals, signing contracts, and applying seals… Add to this the need for offline signatures and online OA systems, resulting in a multitude of complicated procedures. If your contract is just one page long, by the time it comes to stamping it, you might already have 30 pages to handle. Don’t worry – the payment for the work done two years ago is already in the processing stage! [Party B: The client’s store takes advantage of customers.] For many large brand companies, procedures are indeed a key aspect of managing the company. But with processing times that can last several months, to be honest, it’s not clear what exactly is going on during those procedures. Do ten people need to sign off? What about twenty? In short, it’s more likely that those responsible for carrying out the procedures aren’t paying enough attention to them and are too busy with their own tasks to focus on these procedures. 2. I’ll go ask. [Party A: The company has strict cost control] – it’s true! Which developer is willing to pay the money? So, from the group level, down to the managers and finance department, everyone tries to control expenses by delaying payments as much as possible. As for those who handle the transactions, they have little choice; they can decide whether to carry out a task or not, but the process for making payments is very strict. 【Party B: Party A’s delaying tactic】 Payments involve contracts, costs, finance, and various managers, so many developers will tell you, “I’ll go ask on your behalf!” ”After all, it’s not right for the other party to keep pressing for a response; they can only wait. After waiting for a few days, they might get another reply along the lines of “I’ll go ask on your behalf.” Of course, many developers do go and ask. (You know what I mean.) 3. Go and ask so-and-so! 【Party A: Too many changes in payment processes】 The boss’s mood can change frequently; it’s possible he might get upset and step back, in which case everything would have to start over. Many companies assign dedicated staff members to handle these processes, but in most companies it’s the person in charge who deals with them themselves. They already have so much work to do – how can they afford to spend all day dealing with payment matters? 【Party B: This is the way of Tai Chi in which Party A delays payment】 This is a problem that gives Party B a lot of headaches, as it’s impossible to identify the responsible party. It’s as if, when we try to collect payments, we ask the planning manager, who replies, “Go and ask the marketing manager.” The marketing manager then says, “You’d better ask the planning manager who was in charge of you before.” We call the director, who says, “Go and talk to the marketing manager or the planning manager first...” 4. The company is still paying for last year’s expenses right now. [Client: Issues from the past] These days, there are too many frequent changes in personnel, and many people end up having to deal with a pile of messy accounts (of course, they also leave behind a mess when they leave). There’s no proper process in place, no evaluation of performance, and no relevant personnel... How can payments be made in such circumstances? 【Party B: It seems Party A doesn’t have enough funds left.】 This statement is also very damaging; Party A is essentially telling you that you definitely can’t pay now, and it will probably have to be next month. Then they tell you how many millions you still owe which company, saying that they’ll try to help you get it resolved next month! Yes, it’s just a matter of “trying to see what can be done”, and those four words convey a sense of helplessness right from the start. 5. Your service is inadequate! 【Party A: Promises that aren’t kept】 Often, during a partnership, we have high expectations of Party B; or rather, Party B makes grand promises during bidding, which makes us feel optimistic. But when it comes to actual implementation, we realize: what exactly has been done? What nonsense, how am I supposed to give you money? 【Party B: Party A seems determined to go back on its word】 When asking for payment, they said, \"The quality of your work is poor; payment cannot be given for now.\" Party B then wondered what exactly was wrong with the work Sometimes, even the client can’t tell what’s key. I’ve taken care of it; which task isn’t done or what’s the issue? A whore, and still thinks the arch isn’t high enough? We’ve done everything possible to collect the payment – what more do you want? 6. It’s okay; there will be plenty more tasks for you to do in the future. 【Party A: Keep the opportunity for future cooperation】 There is a slight issue with the payment process at the moment, but it will be resolved after some time. What can be done now is to prioritize keeping the opportunity for future cooperation. 【Party B: Party A’s so-called plans for the future are meant to drag Party B down with them.】 Party A uses seemingly attractive offers to make Party B think that they still have a long way to go before things improve. The saying goes, \"If you turn against each other, there’s no future; if you don’t, there’s no present.\" Whether the present or the future is more important depends on one’s strategy – after all, the present is difficult, and the future isn’t yet clear. As Party B, the construction contractor knows only too well the difficulties it faces and must resort to every possible trick to secure payment. Two key points: strengthen oneself and get to know the client. Key point 1: Strengthen oneself so that the client has no reason to delay payments. One should not put the wrong things first; skills and tactics are secondary, while having a strong foundation in oneself is what truly matters. The reason for Party A’s failure to make payments is usually that Party B has not met the requirements stipulated in the project contract; therefore, to ensure timely payment, it is essential for the supplier to focus on the following aspects: maintaining the progress and quality of the work, and fulfilling all the obligations outlined in the contract. During the project implementation, if the client has special requirements or if unexpected events such as natural disasters affect the construction progress of certain systems, it is necessary to report this to the general contractor’s project team promptly, explaining the reasons for the delay, taking measures to make up for the lost time, and indicating the adjusted schedule for the various milestones. Key point 2: Get to know the client and identify the key points for collecting payments. When pursuing payment from a client, it is first necessary to understand their internal processes. This article takes the progress payments of Vanke, Country Garden, and China Overseas Engineering as examples to provide a standard analysis of the process, along with relevant precautions. In cases involving a specific project or contract, the parties involved in the project should make decisions based on the actual conditions of the project. http://img.civilcn.com/d/file/zhishi/gcgl/2018-12-26/7cb4f0589a8cf8dcf163eff980ffe834.jpg http://img.civilcn.com/d/file/zhishi/gcgl/2018-12-26/aea0d32d6d316c5ce8caa0f0c082a1c3.jpg http://img.civilcn.com/d/file/zhishi/gcgl/2018-12-26/0e0e9a68d5de6fc5b05ec357de9e309d.jpg Try these debt collection methods? The content is based on materials collected from the Internet; if there is any infringement, please contact us for removal. 1. Debt settlement by property: If the debtor does not have cash to repay but agrees to settle the debt with property, a reasonable valuation is carried out. The collateral should be cost-effective and easy to liquidate. During the debt settlement process, for debts settled by asset offset, the corresponding registration procedures for property mortgage rights must be carried out. 2. Recording-based collection method: Case analysis – There was a balance of 300,000 yuan due from a construction project that remained unpaid for 10 years. At the beginning of 2004, the legal advisor of the construction company started by collecting evidence, obtaining the \"Construction Contract\" and the \"Project Completion Report\" signed by both parties, which laid the foundation for protecting their rights. After obtaining the aforementioned evidence, the contractor used the methods permitted under the Supreme People’s Court’s Provisions on Several Issues Concerning Civil Evidence to acquire audio and video evidence demonstrating the interruption of the statute of limitations in this case, through telephone recordings and videos. The project manager called the owner’s mobile phone in January 2004; the main contents of the conversation were: 1. The amount owed by the other party ； 2. The contractor has been asserting its claims since 1994 ； 3. Third, when will the owed amount be repaid? The entire call was recorded both audio and video. In particular, in the video evidence, the scene environment, the people present, and the process by which the project manager called the client’s mobile phone are clearly visible. Subsequently, the “call logs” of the telephone used by the project manager were extracted from the mobile company. Thus, the chain of evidence regarding the expiration of the statute of limitations has been completed; all evidence showing that the other party is in arrears with the contractor for payment has been obtained, providing legal evidence to resume the statute of limitations. 3. Bank transfer method: If a project owner owes hundreds of thousands of yuan in payment for work done, and over the years refuses to pay using various excuses while also failing to keep any accounting records, this can result in the claim exceeding the statute of limitations. To obtain evidence, the contractor can first send someone to the other party’s company to collect the overdue payments – whatever amount the other party is willing to pay – but not in cash; instead, they demand payment via bank draft, while trying every means possible to restore the statute of limitations. 4. Negotiated reconciliation method: The revised purchase orders and reconciliation statements signed by both parties serve as valid evidence for debt settlement. 5. Audit upon leaving office: Under the pretext of conducting an audit of internal company leaders upon their departure from office, pressure is exerted on the debtor entity to issue a business contact form. Once an invoice is issued, it becomes valid evidence. 6. Intentional assertion of the law: If the amount owed is 40,000 yuan, the statute of limitations has already expired after 2 years. The contractor sent a letter to the owner by express mail, deliberately demanding the repayment of 80,000 yuan in debt. Sometimes the debtor feels wronged and replies by acknowledging only 40,000 yuan of it. Such a reply serves as evidence of the contractor’s victory. 7. In accordance with the laws on litigation, we should make full use of relevant laws such as the \"Right of Priority in Repayment,\" the \"Interim Measures regarding the Enforcement Effect of Agreements on the Repayment of Outstanding Payments for Construction Projects,\" and the \"Supreme People’s Court’s Interpretations on Issues Concerning the Application of Law in Cases Involving Disputes over Construction Contracts\" to protect our legitimate claims. For cases where there is sufficient evidence, the facts are clear, collection attempts have failed, and the debtor has the ability to repay, legal action will be taken resolutely. In litigation practice, evidence collection is the foundation, litigation preservation is a prerequisite, and friendly negotiation is the approach. 8. Tracking and recovery method: For those stubborn debts that are difficult to collect, a persistent approach of persistence and follow-up should be adopted, with no giving up until the goal is achieved. One can go to the debtor every day, trying to move them with sincerity or annoy them through persistent pursuit. However, it is not appropriate to hire private detectives from the society to carry out surveillance, nor should illegal methods such as house arrest or kidnapping be used. A construction company adopted a persistent approach, eventually forcing the developer to repay the project costs. For a housing construction project undertaken by this company, the developer refused to meet with the debt collection staff from the construction party in order to avoid paying his debts. The construction party then sent three debt collectors who followed the developer in a special vehicle; after nearly a month of tracking, they finally caught up with the developer on the night of the 28th day of the lunar month, forcing him to admit his fault and causing him to issue a check for several million yuan as payment that very night. 9. Internal bidding method: Some companies identify a set of difficult projects and initiate bidding processes among their employees to recover the outstanding amounts, offering certain incentives to encourage such recovery efforts. By formulating and issuing the \"Internal Procurement Procedures for Accounts Receivable,\" standards for procurement expenses, the procurement procedures, and sample collection agency contracts are established. Case study: A company launched 315 debt collection projects worth 107 million yuan, and bidding was used to recover these debts. One of the company’s employees took on 6 such projects, managing to recover 4.06 million yuan in overdue payments with an age of over five years. Many units have motivated their staff tasked with debt collection by summarizing their annual debt-collection efforts, recognizing outstanding teams and individuals, and introducing various innovative methods for debt recovery. 10. Extended debt collection methods include: 1. Taking over ongoing construction projects ； 2. Work together with Party A to identify the construction entity in order to secure funds and other means to recover the outstanding project payments ； 3. Assist real estate agents in selling properties, using the proceeds from sales to repay debts ； 4. Facilitate the supplier to purchase commercial housing to offset the material payments owed by our side. 11. Law on the Assignment of Claims: Proper use of claim assignment can effectively resolve triangular debt issues, reduce collection costs, and ease conflicts within enterprises. Case study: A company collaborated with a company in Hunan to undertake the construction of a road pavement project. After the project was delivered upon passing the initial inspection, Party A still owed more than 10 million yuan in payment for the work. In order to recover the overdue payments as soon as possible, a company resorted to debt assignment, transferring more than 9 million yuan in debts to its partners and signing a Debt Assignment Agreement, thereby offsetting the equivalent amount of debt that the company owed to another company in Hunan. 12. The media exposure method: A group in Yunnan asked local Yunnan television stations on multiple occasions to expose the owners of certain construction projects, such as a particular building, who had been delaying the payment of large sums owed for those projects. This brought attention from society to those real estate developers who maliciously delayed payments, thereby leading to the recovery of the owed amounts. 13. Contract Prevention Law: The difficulty in project settlement lies in cost evaluation. The owner fails to provide a price assessment in a timely manner for various reasons ； At the same time, the validity of the price assessment also needs to be determined by both parties. It is common for the contractor to submit a cost estimate that the owner does not approve ； The owner conducts price evaluations, but the contractor does not agree to them; such multiple evaluations and repeated assessments are time-consuming and labor-intensive. To this end, the following provision can be included in the contract: 1. “The Owner shall complete the evaluation of the final account within × days of receipt; failure to do so shall be deemed to mean that the evaluation is effective,” in order to prevent delays in conducting the evaluation. Sometimes the above wording is included directly in the contract, and the owner refuses to sign out of concern that their rights will be compromised. There is a workaround: the contract can specify that both parties shall be governed by the Construction Law, the Measures for the Administration of Pricing in the Contracting of Construction Projects, and other relevant regulations, which outline the consequences of delayed entry into force. If both parties choose to apply these regulations, it will have the same effect as a delayed entry into force. 2. “If the contractor has objections to the owner’s timely audit results, both parties agree that either party may go to XX Accounting Firm for verification, and the amount determined by such verification shall be regarded as the final decision.” This is to prevent repeated valuation. In summary: People have their own difficulties; the client doesn’t delay payment for no reason – they truly are unable to pay. By the end of the year, when everyone stops responding, ignores calls, and doesn’t reply to messages, who’s happy about that? It’s just that there’s nothing they can do! As for the contractor, carrying out construction work isn’t some kind of charity act; there’s no need to rush to collect payments. It can be seen as an investment in the relationship, but not collecting payments doesn’t mean giving up on them! So, it’s still necessary to follow up when the time comes, after all, it’s one’s own hard-earned money. In short, both parties are like grasshoppers on the same string; they should understand and show consideration for each other, as well as help one another.