Every clogged drain you clear is another invoice -but is it another payment?
Late-paying customers aren’t just an annoyance; they can wipe out the thin 3-5 % profit margin many small plumbing and contracting firms run on. A 2025 survey of 250 U.S. contractors found 70 % experience payment delays, with 64 % resorting to mechanics liens at least once. The good news? Pro-level collection tactics can bring the cash back in—without torching client relationships.
Serving Plumbers NationwideNeed a Collection Agency for Plumbers? Contact Us |
Why the Cash Stops Flowing
| Common roadblock | Quick reality-check |
|---|---|
| Change-order shock – Extra work not on the original quote | Put every change in writing with the client’s e-signature (mobile apps work). |
| “Punch-list” disputes – Owner claims work isn’t finished | Use before-and-after photos; include completion sign-off in the contract. |
| Sticker-shock on materials – Copper price spikes 25 % YoY | Build a material-cost-escalation clause tied to the Producer Price Index. |
| Poor paperwork – Missing W-9, tax ID, lien notices | Add a one-page onboarding checklist for every new job. |
Real-world example: Joe’s Plumbing in Ohio was owed $5,200 on a residential re-pipe. After 45 days of silence, they triggered five low-cost reminder letters (about $15 each) through the collection letters service. The homeowner paid in full after letter #3—no phone calls, no liens.
Your Three-Step Collection Ladder
| Step | Best for | Cost model | What actually happens |
|---|---|---|---|
| 1. Courtesy letters | Invoices < 120 days old | Flat fee ≈ $15–$20 | Five branded reminders sent under your name, then five formal collection demands from the agency. |
| 2. Diplomatic calls | 120–365 days | Contingency (keep ~60 %, agency keeps 40 %) | Professional collectors call, text, and email within FDCPA limits, using skip-tracing tools that cost pennies per lookup. |
| 3. Legal suit / lien help | > 365 days or high-value jobs | Added attorney fee + court costs | Agency’s affiliated attorney evaluates whether a mechanics lien or small-claims filing is worthwhile. |
Heads-up: The odds of a friendly resolution drop sharply after 120 days, so move fast.
Extra Tools Contractors Forget to Use
- Mechanics lien rights – In most states you have 60-90 days from last work to record a lien; about 80 % of liens are filed by general contractors.
- Prompt-payment statutes – E.g., California adds 2 % interest per month on overdue public-works invoices.
- Progress-payment schedules – Break big jobs into 25 %, 50 %, 75 %, 100 % checkpoints and withhold further work until each milestone clears.
- Credit-card authorization – For emergency jobs, store a card on file with a signed “completion = charge” line.
Avoid the Low-Ball Trap
Agencies advertising very low contingency rates often rely on automated dialers and recover less. Quality commercial agencies typically charge 15–50 %—but higher recovery means more money in your pocket. Compare with the detailed cost breakdown before signing.
Quick Prevention Checklist
- Run soft credit checks on new commercial clients (commercial accounts).
- Send same-day invoices via email + SMS.
- Offer 2 %/10 Net 30 early-pay discounts; many CFOs bite.
- Schedule a 30-day reminder call—then escalate to a good collection agency if unpaid at 60 days.
The Bottom Line
You didn’t train for years to become a debt collector. Let professionals chase the checks while you chase leaks. Contact us today and keep your cash—and your reputation—flowing.