RonPecinaJr
Senior Member
- Location
- Rahway, NJ
I definitely need a deposit before I start any job over $500.00.
deposit on commercial jobs
- Thread starter Mike Lang
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That right there is the funniest thing I've heard in weeks.
LarryFine
Master Electrician Electric Contractor Richmond VA
- Location
- Henrico County, VA
- Occupation
- Electrical Contractor
It's akin to being insulted when someone locks their car in your presence. :roll:
peter d
Senior Member
- Location
- New England
I was on a new house job doing a temporary service. The foundation crew was there putting up the forms. There was about 15 guys who looked like they just got let out of prison. You bet I locked my vehicle within sight of them.
It's not a big deal to ask. Nobody would be offended if you do. But in this area you won't get it because no one around here is use to paying them. Apparently its a regional thing.
I'm curious if an EC ever pays a deposits to their subs? Example: Trenching, boring, crane, fire alarm, communication ect.
Some want prepaid. Some want paid when they show up on-site. Some want paid when they're done and before they leave the job site. Some will send an invoice.
Whatever they choose, it's the way they want to run their business. If I'm happy with their work, then I cheerfully conform to their rules.
jmellc
Senior Member
- Location
- Durham, NC
- Occupation
- Facility Maintenance Tech. Licensed Electrician
Sometimes I have to buy materials where I don't have an account. I may have to rent something where I don't have an account. I have to buy gas and try to minimize the credit cards for it. Permits outside my town, I have to pay up front for. If I have help, he has to be paid the following week. Maybe one should itemize more than "I have to buy materials", I'll give you that.
My boss who got burned so badly had done work for the same GC for at least 4 or 5 other jobs and he'd paid within 30 days on them, so we trusted him. But he and the customer together shafted us royally.
Someone else said residential jobs seldom last more that a week. I've seen a good number of remodels where we roughed in and weren't called for trimout til a month later.
Thanks for the response -
I would agree that on some cases there may be some expenses that you will have to cover. We would cover must of your list with "credit" be it on account with a rental company or credit cards for fuel. But not everyone has accounts everywhere. A good example of where a deposit might be applicable is if you had to supply all of the special order fixtures for a house, these can be a non-returnable item. It's better to get paid for these ahead of time before the wife realizes she diesn't like what she picked out. Overall it is pretty rare that on a residential job we would have actual expenses that WE would have to cover immediatly. But a small company (no offense) my not have that luxary.
In regards to your comment about a remodel lasting a month. We would typically bill for +/- 60& after the rough-in is complete and another 40% after trim.
I was on a new house job doing a temporary service. The foundation crew was there putting up the forms. There was about 15 guys who looked like they just got let out of prison. You bet I locked my vehicle within sight of them.
Okay - this was not the point of your story, but I think I have side that the OP's thread enough times anyways.
If your the homeowner/builder and that crew shows up at your door saying they need a $10K deposit for the foundation do you give it to them?
I personaly would write them a check in that situation so they wouldn't kill me, then call my bank and cancel the check and move.
MisterCMK
Member
- Location
- Twin Cities, MN
Maybe none of us should not be allowed to drive because some gas stations require us to prepay.
I just don't get gas at those types of stations.
How are you to know what one company's situation is with their suppliers? When that line of credit is tried up because of no deposit it is an opportunity cost. There could be more money to be made but the contractor is unable to buy materials because their account is at the limit due to somebody not paying.
I have noticed that is how many contractors set up payments for medium size commercial fit-up work and that along with by weekly progress payments they seem to stay in business without requiring deposits
I just don't get gas at those types of stations.
It's simple....... they don't trust you.
N844AA
Member
- Location
- Los Angeles
People who write checks and then immediately stop payment on them are by definition, untrustworthy. You're the same guy who acts so offended when somebody wants a deposit, you act as if your honor has been called into question. You play this game very well my friend, but here in the big city, we've seen this show before.
Very often the people who are so insistent that you trust them, the people who wont put anything in writing, the people who claim they are so honest are the same people who will give you a bad check.
You want to know why we ask for deposits? It's because of people like you.
You are now on my ignore list.
Wow! You need to lighten up. I'm pretty sure everyone else could see an attempt at humor with my last post.
loosewire64
Member
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.
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