Dealing with Difficult Customers - How to Handle Disputes, Non-Payment, and Bad Reviews

Every contractor has a problem customer story. Prevention: clear written proposals before work starts, signed by the customer. The proposal should specify the scope, the price, what’s included and what’s not, your payment terms, and your change order policy. If something changes mid-job, document it in a written change order before you do the work. Most disputes arise from verbal agreements and assumptions.

Payment terms: get a deposit on any job over a certain threshold. Typically 25-50% upfront, progress payments on larger jobs, final payment on completion. Never finish a large job with a significant balance outstanding. Small claims court is an option for non-payment, and mechanics’ liens are available for unpaid work on real property in most states.

Bad reviews: the worst thing you can do is respond emotionally. A calm, professional response that acknowledges the customer’s concern and offers to make it right will mitigate most bad reviews. The best defense against one bad review is a pile of good reviews drowning it out.