Down Payment

[George Stolz]

Do you require a down payment for bid electrical work?

If so, when do you require the down payment?

Would you do any work (say setting a temp, undergrounds for a house) prior to having a signed contract and/or down payment?

 

[iwire]

We generally close ground up, ground down threads.

 

[rcarroll]

1. I don't recall down payments unless we had problems w/ a GC & he absolutely needed us. On resi & small comm., 70% payment after roughs - 30% at final insp.

2. Upfront.

3. NO!!!!

Now, that was 10 years ago. Times changed.

 

[masterinbama]

Depends on the length and cost of the project. A one day service upgrade generally will not require a down payment. But a project that will take several days will require %40 down after permits and initial front load of material is placed on site and signed for by the owner or their representative.

 

[dixson]

I believe you will find each persons policy is different.
I require 30% deposit 30% upon completion of rough in (not inspection) and remaining monies on "reasonable" completion of job. This way if your having to waiting on something, you Can get the bulk of your monies. Q would rather them withhold 200.00 then 5,000 while your waiting on a busted fixture.

I have a small objection working for a contractor who pays me when the client pays. I work for the contractor not his client. He should fund the job not you.

 

[SMITHGILLIS]

Do you require a down payment for bid electrical work?

If so, when do you require the down payment?

Would you do any work (say setting a temp, undergrounds for a house) prior to having a signed contract and/or down payment?

Encourage, encourage , encourage a down payment, excuse: to help secure their place in scheduling. Also it helps them be an priority over others. Service agreement customers and prepaid customers get our attention first, why? well have you ever broke your neck to help someone out and get burned? We have and the customers who are eager to pay usually end up being great customers. Also helps with buyers remorse once the payment is out of the way its up to your staff to give them the value. Bid jobs are different, but if it is a home owner's new house they usually know it takes money to get the ball rolling. If it is a builder you have been working with then as long as they pay their bill give slack. If they are taking to long to pay tell them so and ask for a deposit. Down payment and signature on agreed price helps keep them from shopping some more.

 

[rcelec]

No contract....no work....

I had a customer that was going to do a house.I was doig the electrical no matter who built it.They were taking an existing house and lifting it up, building under it,over it and on three sides.As they were shopping for builders a tree took the service off the house.So one confident builder sent his electrician over to set a temp but then was not awarded the job.

He did get paid because the owner was a good person,luckly.

As far as down money if it is some one knew get it.

 

[SMITHGILLIS]

I have a small objection working for a contractor who pays me when the client pays. I work for the contractor not his client. He should fund the job not you.

AMEN!!!!!!!! I second that!

 

[ishium 80439]

This has always been an area that I feel is grey. When working for an HO on a service call type job (eg old working 8 cans) than no down payment. Service changes I usually do 80% upon completion, the remaining 20% after inspection. Any manner of construction from basement fininshes to ground up homes 30% prior to start, 40% after rough inspection, the remainder (w/ credits and extras) upon substantial completion.

When working for commercial GC's I'm happy to see anything w/i 45 days of billing. I have never understood why it works this way but have played ball.

 

[jumper]

Depends on the length and cost of the project. A one day service upgrade generally will not require a down payment. But a project that will take several days will require %40 down after permits and initial front load of material is placed on site and signed for by the owner or their representative.

Speaking as consumer, I have hired several trades - roofer, mason, and carpenter - to work on my house and I have always agreed to a policy like this. Never had a problem with it.

 

[hardworkingstiff]

If you don't get a down payment for job (other than small for you or a service call) in this environment, you are asking to be used and abused.

I'm still sitting on $40,000 worth of material I purchased last August for a job. I got a $17,000 deposit, and have been waiting on the other $23,000. I'm in a no lose situation because of the deposit (I can sell the material back at a loss and still not get hurt if necessary). This customer will have to pay me up front to finish the project when (if?) it gets going again. Supposedly the new investors are just about ready to start back up.

 

[Rewire]

We have a minimum $250.00 or 10% which ever is greater down payment. That is due at time of signing work request,our jobs are usually small and short in duration.

No money no work.

 

[George Stolz]

Thanks for the replies.

I'm trying to find some hard and fast rules to develop to keep us from getting sideways, and appreciate all perspectives. We've got a situation touching a nerve, and are probably being too patient with the client.

Keep 'em coming, thanks.

 

[hardworkingstiff]

Thanks for the replies.

I'm trying to find some hard and fast rules to develop to keep us from getting sideways, and appreciate all perspectives. We've got a situation touching a nerve, and are probably being too patient with the client.

Keep 'em coming, thanks.

These situations can be very touchy (assuming a good relationship getting a test). Sometimes a notice of intent to lein can help, but often it takes the actual lein. In this day and age, you can't let the lein time slip.

 

[jaylectricity]

1. I don't recall down payments unless we had problems w/ a GC & he absolutely needed us. On resi & small comm., 70% payment after roughs - 30% at final insp.

2. Upfront.

3. NO!!!!

Now, that was 10 years ago. Times changed.

I didn't make it past this one...

So now, we just give away our work and hope somebody pays us?

 

[ptonsparky]

Only tried up front payments twice. The first story is to long and the second was because I did not think the customer could come up with the money and I didn't want the job anyway. I lucked out, she had the money and I had my guys to the work.

 

[mjf]

residential

residential

1/3 down
1/3 @ rough
1/3 @ final

with 2/3 paid prior to final, materials and labor are covered, and only possible to not get paid the profit on the job.