You raise some good issues here. It's very true that we shouldn't have to be shadetree lawyers or bill collectors. Every contractor, however, should have a professional lawyer and collection agent on retainer, and should use them without hesitation. Many business law specialists will do both for you.
This doesn't mean to be ready to sue somebody as soon as things go bad, but rather to rely on your lawyer during the contracting process to be sure your expenses are covered if the project goes south. I know that lawyers charge plenty, but it costs you more when you try to handle it yourself.
I also realize that many of us are reluctant to involve a lawyer early in the contracting process for fear that we will appear too confrontational to the customer. But who do you think drew up the contract the customer is asking you to sign? Their lawyer, of course.
