Is 10% too much down
- Thread starter kiddrock
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jmsbrush
Senior Member
- Location
- Central Florida
Why take a job, knowing payment is going to be slow? If you are on 30 day billing with a GC, then you need to be paid on the day that you are supposed to be paid.
I have never worked with a GC that gives down payments. We always finance the job.
You can always try.
I have never worked with a GC that gives down payments. We always finance the job.
You can always try.
IMO, no. If anything it may be way too little.
If your switchgear, lighting package etc must be pre ordered and paid for, you will probably need more than 10% to keep on top. I'd be asking 50%.
If he is slow with payments you can bet he has a low credit score and is a poor risk I would not worry about a down payment because I would have him secure a bank construction loan with progress payments to me from the bank
petersonra
Senior Member
- Location
- Northern illinois
- Occupation
- engineer
That might be a good way for him not to get the business.
If you judge that the GC is reliably going to pay you, but just slower than you would like, have your bank finance the transaction and include the cost in the project. At least add some interest to the cost of the job even if it is self financed.
The cost of money is a legitimate cost of doing business and it needs to be considered when you bid a job. Somehow that cost has to be covered just like every other cost.
Depending on your relationship with the GC, being honest with him and just telling him his slow payment ends up costing him more over the whole job, might result in him agreeing to pay more upfront in exchange for a small discount.
If as the previous poster suggested, the GC is not real well financed, maybe it is just better to skip this job, or get some kind of payment guarantee.
krisinjersey
Senior Member
- Location
- Hackettstown, New Jersey
Afraid to ask?
Afraid to ask?
1/2 Down, balance less $100 on completion, $100 after final inspection for any job that's under $10k or for a GC that we don't have a good relationship with yet. At the very least 30%, 30%, 40%. The idea of the architect or project engineer setting up a payment schedule is something we have written right out of our contracts as well. And when the check is late the labor doesn't show up either.
If your afraid to ask for your money, you're in the wrong business. If you're afraid the work will stop coming from him that may be for good reason. He may be looking for the next sucker. It's bad practice to let guys string you along.
My old boss used to tell guys who were hesitant to collect T&M tickets, "If your afraid to stick your hand out to the customer, you should be afraid to stick it out for your paycheck too."
Do you really need a job that's going to be a headache to get paid for, or is your time better spent finding work that will pay?
Afraid to ask?
1/2 Down, balance less $100 on completion, $100 after final inspection for any job that's under $10k or for a GC that we don't have a good relationship with yet. At the very least 30%, 30%, 40%. The idea of the architect or project engineer setting up a payment schedule is something we have written right out of our contracts as well. And when the check is late the labor doesn't show up either.
If your afraid to ask for your money, you're in the wrong business. If you're afraid the work will stop coming from him that may be for good reason. He may be looking for the next sucker. It's bad practice to let guys string you along.
My old boss used to tell guys who were hesitant to collect T&M tickets, "If your afraid to stick your hand out to the customer, you should be afraid to stick it out for your paycheck too."
Do you really need a job that's going to be a headache to get paid for, or is your time better spent finding work that will pay?
I have a fixture supplier that gives really good pricing if we pre pay. I don't buy a lot of gear but I assume they would want payment net now.
Even if is 30 days from delivery, I wouldn't want to be chasing money at the last minute. The way things have been going, the project could come to a grinding halt and I'd be stuck with some gear I ordered and have no money to pay for it.
It's your equipment. Pay me up front. I'm a contractor, not a lending institution.
jmellc
Senior Member
- Location
- Durham, NC
- Occupation
- Facility Maintenance Tech. Licensed Electrician
Be very careful here. A former boss got burned by a GC he'd done lots of work for. GC had always paid before, though right at 30 days, never early. 1 job got really weird & we spent a fortune for expensive materials. Worked 18 hour days, then got strung out nearly a year in getting paid; got bits & pieces at a time. That job was supposed to put us on the map. Instead, it ruined the boss's spirit.
Demand payment each week for mtls & labor that week. Bill on Fri Pm with check due Monday. Or demand payment for materials on arrival & labor each week.
Demand payment each week for mtls & labor that week. Bill on Fri Pm with check due Monday. Or demand payment for materials on arrival & labor each week.
kwired
Electron manager
- Location
- NE Nebraska
Reply to the wrong thread? Maybe I'm missing something.
Was entertaining to read the previous posts and then read this one.
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