How long is it taking you guys to get payment on commercial service work?

[bjp_ne_elec]

I have done commercial jobs in the past, but always new construction or renovation - so I always worked up a contract and it's terms involved progression payments - 50% at start, 25% at rough-in inspection, 25% at final inspection.

Now I'm working to pick up service work, as the renov and new construction - both commercial and residential have been so slow.

What are the terms you guys have worked out for payment of commercial service work? I turned in the invoice to my first customer, and basically indicated it was "due on receipt". Do most of you expect a payment based on a particular customers bill paying scheme?

Do any of you get paid the same day as the job is completed?

[tonyou812]

Im going on 40 days from a job I did at Hooters.

[bjp_ne_elec]

Tony - thanks for that - but on average, what are you typically seeing for length of time from invoice to check in the mail.

[JacksonburgFarmer]

It varies on the customer, any service or T&M work is "due upon recipt". I expect payment within 30 days at latest, or we reinvoice. After that, I call and we talk. Most pay in 20 days or so when due upon recipt. It all depends on the customer....

[tonyou812]

Tony - thanks for that - but on average, what are you typically seeing for length of time from invoice to check in the mail.
Most of the smaller companies usually send it within 30 days. But the few experiances Ive had with the larger companies, Toyota, Hooters and some others they usually go the distance 45 to 60 days.

[480sparky]

It all depends on the company I did the work for.

I have some folks who pay me before I leave. Not that I demand it, but that's the way they do business.

Others, particularly franchise operations, churchs & schools can take 2 or 3 months to crank out a check. It's inconvenient, but it's part of the business.

[frenchelectrican]

It will varies a bit depending on the customer itself and some do pay me on the spot and some do pay me in one of three common format 15, 30 and 45 days is typically but once a while expect that to streched to 60 days.

Merci,Marc

[ITO]

Commercial Contract work is billed on a draw schedule and paid somewhere in between 45 to 120 days depending on the GC.

Commercial service work is billed net 30, which means under the some circumstances stances you could get paid as late as 45 days out. If you can’t wait that long just be clear to the client that your invoice is due upon receipt or net 7 or whatever you need to work out. If your client can’t move that fast (some can’t) they should tell you and then you can decide if you want the work bad enough to deal with their book keeping.

[Greg Swartz]

It depends on the size of the company AND the size of the job...

One of the larger semiconductor companies, a $5k job took 30 days from invoice, and a $700 job I was paid via Credit Card the next day (told me to break it down to 2 invoices that were each less than $500)

A couple of Wolesley companies I do work for... Anything under $2k... I get paid before I leave. Anything over, it is supposed to be net 90, but I still get paid within 30 days.

A lot of small companies pay before I leave... so long as I have an invoice in hand.

All of my residential service work is paid before I leave.

Funny thing is... more and more of my commercial work wants to pay with a Credit Card...

[Greg Swartz]

Oh, and the mall is the worst!

They told me net 90... but after about 6 invoices, and 8 months, I had to send a collection agency on them.

It got their attention real fast.

Then they had the audacity to call me and ask how I charged interest on their bill?!?!

I told them to be happy I wasn't smart enough to tell the collection agency to increase the bill to add their "cut" to the price.

A very shor 45 days later I had my $400... yep only $400 stinkin dollars... which I had to pay $150 to the collection agency...

[480sparky]

....
A very shor 45 days later I had my $400... yep only $400 stinkin dollars... which I had to pay $150 to the collection agency...

You don't add collection charges to the bill? :-? That's SOP in my world.

[zog]

Im going on 40 days from a job I did at Hooters.

You did a "Hooter Job"? Sorry, couldnt resist that one.

[satcom]

Commercial service work, credit card, check day of work, in some rare cases, we will do 30 days, if they past 45 days, we send it to the collection. We are not in the banking business. Let some looser take on all the dead beat accounts, show me the money.

[tonyou812]

Oh, and the mall is the worst!

They told me net 90... but after about 6 invoices, and 8 months, I had to send a collection agency on them.

It got their attention real fast.

Then they had the audacity to call me and ask how I charged interest on their bill?!?!

I told them to be happy I wasn't smart enough to tell the collection agency to increase the bill to add their "cut" to the price.

A very shor 45 days later I had my $400... yep only $400 stinkin dollars... which I had to pay $150 to the collection agency...
My collection agency is a guy name "Peter big nose"

[ITO]

If there were one place a lien really worked better than any other it would have to be for malls. Simon Properties turns from an 800lbs gorilla into Godzilla when they get a lien notice on one of their properties; they do not like it when you send a notice to one of their tenants they harshly deal with them and get great results fast.

[wireguru]

If there were one place a lien really worked better than any other it would have to be for malls. Simon Properties turns from an 800lbs gorilla into Godzilla when they get a lien notice on one of their properties; they do not like it when you send a notice to one of their tenants they harshly deal with them and get great results fast.

wierd. around here (so cal) the mall owners record a notice of non responsibility with the county when any TI work is taking place, and contractors working for the tenant cant place a lien on the property.

[ITO]

Sounds like SoCal law... that's too bad.

[growler]

What are the terms you guys have worked out for payment of commercial service work? I turned in the invoice to my first customer, and basically indicated it was "due on receipt". Do most of you expect a payment based on a particular customers bill paying scheme?


Are these commercial accounts local or are you having to bill corporate headquarter someplace? Some local accounts will pay basically as soon as it's processed so it will take from 7 to 10 days to get a check.

When you invioce corporate, then itn 30 to 45days.

Be carefull when billing commerical accounts, make contact with the accounts payable department. Don't let things like them needing proof of insurance or a form w-9 keep you from getting your money. Many people will tell you that the form is not required but some companies won't pay with out it. Once they set you up as a vendor there really is no excuse for them not to pay promptly. Find out what the local manager is allowed to OK without a PO number or even putting a job out to bid.

The accounts payable department won't mind if you call to get all the information to make you life more enjoyable. Most people are screaming a yelling at them for non payment so they like it when someone calls to get the correct information.

[wireguru]

Sounds like SoCal law... that's too bad.


well at the same time, its not fair for the mall owners to get a lien on their property when they have nothing to do with the contracted work....

[480sparky]

well at the same time, its not fair for the mall owners to get a lien on their property when they have nothing to do with the contracted work....

At least they're not out all the money & time & material it took to do the job.

[masterinbama]

I seem to have more trouble getting paid on the smaller commercial accounts. Did a service call in February of this year. New customer 8 story apartment complex. They told me on the phone the parking lot lights would not go out, grabbed a couple of photo cells and headed over. Their on site maintenance guy meets me in the parking lot ,sees me grab the photo cells from the truck and says he already changed it. He takes me to the main electrical room and says this is the panel that feeds the lot lighting. Right next to the contactor is a switch marked "maintenance bypass do not operate" I flipped the switch off and the lights went out. $150 service call + no parts. My invoice clearly states payment due at time of service unless negotiated otherwise. Corporate says this is too much to flip a switch. I guess they will find out what too much is because I filed the lien yesterday.

[wireguru]

At least they're not out all the money & time & material it took to do the job.


im all about going after people HARD who do not pay....I guess the lien on the mall causes the landlord to force payment from the tenant....

[ITO]

well at the same time, its not fair for the mall owners to get a lien on their property when they have nothing to do with the contracted work....

I respectfully 100% disagree, they own the building the chose the tenant, collect rent from the tenant and ultimately realize the benefit of any improvements. They also have the power to make the tenant pay your bill.

[480sparky]

I seem to have more trouble getting paid on the smaller commercial accounts. Did a service call in February of this year. New customer 8 story apartment complex. They told me on the phone the parking lot lights would not go out, grabbed a couple of photo cells and headed over. Their on site maintenance guy meets me in the parking lot ,sees me grab the photo cells from the truck and says he already changed it. He takes me to the main electrical room and says this is the panel that feeds the lot lighting. Right next to the contactor is a switch marked "maintenance bypass do not operate" I flipped the switch off and the lights went out. $150 service call + no parts. My invoice clearly states payment due at time of service unless negotiated otherwise. Corporate says this is too much to flip a switch. I guess they will find out what too much is because I filed the lien yesterday.

First invoice: "Flip switch: $150."

After they complain, reinvoice them.

"Flip switch: $10. Knowing to flip switch: $140."

[mdshunk]

For commercial service work, I send a bill marked "due on receipt", but don't get too excited until it goes past 45 days. Commercial clients historically only pay once a month, and when you send in your invoice in that cycle dictates when you are paid. It's as simple as that. There are a few that I require to pay me out of the cash register or write me a check as soon as I'm done, due to history with them, but for the most part most people pay within a month or so.

[LarryFine]

First invoice: "Flip switch: $150."

After they complain, reinvoice them.

"Flip switch: $10. Knowing to flip switch: $140."And add: "If it was so easy, why didn't you do it before calling me?"

[480sparky]

And add: "If it was so easy, why didn't you do it before calling me?"

"If it was easy, the plumber could have done it." :smile: