deposit on commercial jobs

[jerryalan]

geez

geez

i usually get 30-30-30 on jobs i bid, 30% when i agree to do the job and 30% when i start, with the remainder spread out as the project unfolds.
the first 60% is committed to material and parts on site and accounted for as the project progresses and some for my labor.
i've always worked like this, and when i go to the grocery store am treated like this.
it cost's money to file a lien and usually a lien is payable when and if the property is put up for sale, (lien on the title).

this spring i met with a couple owner/investors near Detroit, and after explaining my terms they gave me an envelope with cash that i worked against.

i'm small potato's and any money i have to invest in proprty is usually my own property.

there are plenty of guys that will act as a bank on a project, i'm not one of them.
(i've never lost a job because of my business practice, nor have i ever got a job by underbidding a competitor.
lien waiver up front, (where is my falling off my chair laughing icon) ?


I disaggree. If you have completed your work I will pay you promptly. I don't see the need to "pre-pay" for work. < do you pre-pay for gasoline?

Can you explain to me what the deposit covers exactly? < labor and material

 

[perry vogler]

I do not require a deposit and most if not all will not give you a deposit. You must get yourself a job account at the supply house and take a notice to owner for youself on the job. If you have anyproblems with the contractors pay then you send him the intent to lien and inform the supply house of non payment. A notice to owner will shut his job down if he doesnt pay you on time. Also if you take a notice to owner the bank or owner will want to see a lien release signed by you stating you have been paid up to date or paid in full before the contractor can get his next draw or final payment.
Warning, take a class on the lien laws and contracts. This will teach you how to protect yourself from the ruthless contractors. Advice from this forum can get you in trouble. You need more, its too important. Mike daughter teaches a very good class on the business side of things that will bring you up to speed on contracts and liens, look up the schedule on Mikeholt.com. PV

 

[jmellc]

Just Got Burned

Just Got Burned

Weighing in again on this issue. This was not a commercial job, but same problem. I just found that I likely will not get paid for a mobile home hookup I did a few months ago. I don't think customer is purposely stiffing me; both parents are unemployed/underemployed, have 2 kids. They don't duck me when I come to the door, they easily could sometimes. Anyway, I did the job at a loss to begin with, as I had given a price and then job was different. Some misunderstandings because of language barier. I did charge extra for an obselete main breaker I had to find when the original had a jammed terminal bolt. Total was $540, they paid $100 before becoming destitute. Didn't know them before, 1st job. I have to start getting deposit upfront from those unknown to me, or upfront the approx cost of materials. I could not afford this loss; things are hard enough already. Losing on my labor is bad enough, losing on materials takes it to another level. My being the good guy in this case just showed that "no good deed goes unpunished".

 

[jmellc]

The only reason to get money up front is if you do not have credit. If you are reputable company you should have the ability to fund your projects until the first due date for in place work. If you have good credit you can borrow against receivables to start projects. We do over 10 million a year based on contracts and approved credit accounts. I buy materials 30day net and bill accordingly.

Maybe you are in a better market with good commercial work, good paying customers, etc. Around here, times are hard, commercial work is slow. In resi, we are competing against leafrakers and painters that also do electrical work. For customers who "will have the $ next week". I also had 2 former bosses burned in commercial by out of town GC's, apartment complexes and 1 GC we'd worked with awhile and had come to trust. An EC needs a little up front on a job with major expenses, unless he's well financed. Many of us have no investors or sponsors to soften the losses.

 

[jerryalan]

gee whiz

gee whiz

the above proves my point.
how you treat the destitute reflects your character and could be the best advertising available, we all do "charity work" sometimes.
but had you followed my my suggestion, (tried and true), you'd only be out part of your labor.
the biggest part of my job, as i see it, is making sure folk get what they pay for . . .
that includes my client and my supplier. i have accounts all over and have had pretty good luck so far, (knock on wood), i try to be fair and be treated fair.
the G.C. isn't working for free and neither am i.