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    Payment by customer

    Customer wants to give 75 percent after rough Inspection and the remainder after final.

    I'm not a fan of paying for stock out of pocket.

    How does everyone feel about that?

    #2
    I Normally ask for 30% upfront, 50% at rough inspection, and 20% after final inspection but I have been known to take less upfront if it's make or break on the deal. It does make me nervous though.

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      #3
      Originally posted by JJWalecka View Post
      Customer wants to give 75 percent after rough Inspection and the remainder after final.

      I'm not a fan of paying for stock out of pocket.

      Let the customer know that you require a certain percentage to get the job started.
      The 95% of people that you can't trust give the other 5% a bad name.

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        #4
        Mobilization fee!

        Roger
        Moderator

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          #5
          I do almost no work for people with whom I have no connection, so I don't have to worry about it much. All my work is repeat business and personal-referrals, or contacts I make as an active member of the Nevada Shooters Internet forum, a mostly trustworthy community.

          I think people are much less likely to screw you over when it was a mutual contact that referred you.

          But the size and expense of the job would dictate the answer, plus any Spidey Sense you get from the client. I wouldn't even do a pre-paid job for someone from which I got a bad Spidey Sense.

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            #6
            It should be noted as “Stored Materials” on your contract schedule of values, rough-in draw would then be listed as a progress payment.

            You would bill stored materials before the job starts, once the contract is signed.

            My custom residential stuff gets pretty high on contract value; I’ve started breaking out fixtures and gear just as we do on large commercial projects and billing them ahead of rough & trim.


            Sent from my iPhone using Tapatalk
            Brought to you by Carl's Jr.

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              #7
              We don't ask for money up front, even on large projects. We do progress bill monthly.

              For some residential customers that seem a little questionable, we will ask for 50% upfront. This is very rare though.

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                #8
                Originally posted by growler View Post
                Let the customer know that you require a certain percentage to get the job started.
                Same here, I am not a lending institution.

                How much I want upfront, depends on the project, some have high dollar amount of materials immediately some maybe a little later so it may vary from one job to the next. But if I am asking for $$ upfront, chances are there is materials it is associated with going to show up almost immediately afterwards. Progression of labor or even additional materials billings will follow on jobs that take some time to complete.
                I live for today, I'm just a day behind.

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                  #9
                  Tell him there's a 25% fee for fronting the money

                  If he agrees to pay fee + 75% draw, but not until roughin inspection, stop returning his calls
                  Dave Ruth

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                    #10
                    Originally posted by JJWalecka View Post
                    Customer wants to give 75 percent after rough Inspection and the remainder after final.

                    I'm not a fan of paying for stock out of pocket.

                    How does everyone feel about that?
                    Could you get the customer to put the money in an escrow account with instructions on when it pays you (with the idea the customer cannot get to the money or change the payment schedule)? Would a bank do this?

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                      #11
                      Does your supplier set up job accounts? Then they get paid when you get paid. If there is a problem they go after the property owner.

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                        #12
                        Originally posted by JJWalecka View Post
                        Customer wants to give 75 percent after rough Inspection and the remainder after final.

                        I'm not a fan of paying for stock out of pocket.

                        How does everyone feel about that?
                        Ask them why they don’t want to give you a deposit, if it’s a trust issue then tell them it’s a two way street, thanks for the offer to bid and walk away.

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                          #13
                          Originally posted by oldsparky52 View Post
                          Could you get the customer to put the money in an escrow account with instructions on when it pays you (with the idea the customer cannot get to the money or change the payment schedule)? Would a bank do this?
                          I'm sure the bank doesn't do that for free, unless you're a really good customer.

                          Comment


                            #14
                            Originally posted by gadfly56 View Post
                            I'm sure the bank doesn't do that for free, unless you're a really good customer.
                            Banks don't do anything for free, unless they are already making plenty of profit from you in other ways, then they might waive some fees here or there.
                            I live for today, I'm just a day behind.

                            Comment


                              #15
                              The only thing I would add is to get the agreed terms in writing and signed by both parties.
                              We always did that in business.
                              More recently, on a personal basis,we sold a house for about quarter of a million bucks. At that level, you leave nothing on a verbal say so.

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