Getting Paid

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kiss

Senior Member
On a job thats over $ 1000.oo up to $ 100,000.oo
how much can you get up front upon signing a contract with a customer. Does it vary if working for a G.C. or direct for the owner?
When is it not appropriate to receive any money up front?
Any help would be appreciated, with this touchy subject.
 
Re: Getting Paid

Anything that you can afford to lose you can use a handshake. Anything over that get a contract.

You should pay the money to an attorney that knows the area in which you are working.

Mike P.
 
Re: Getting Paid

You are putting your wallet on the line with out any up front money or contract. Just because some one is a gen. contractor doesn't mean they cant or wont fail on their part and not pay the subs. On any job for a GC I collect 60% up front plus permit fees, 20% at rough in and bal. at final.
 
Re: Getting Paid

There are a lot of factors involved such as, reputation, experience, job market, competition, size of the work, size of your shop, etc...

You need to set a policy that works for you and stick to it. Trial and error plus some ideas from the more successful EC in your area will help determine what works for you.
Good luck and happy New Year!!

Pierre
 
Re: Getting Paid

there are two things you need up front....1. a tax advisor(cpa) 2. a lawyer familiar with trade contracts.....the first few years of my business I worked at a loss due to inexperience as a professional....the cpa kept me straight with the IRS while the attorney helped me collect the monies that was owed me! the money was well spent and today I owe much of my success to them! consulting with other contractors will help....providing they think you are not trying to "move in" on their territory. some contractors will help, others will not! good luck!
 
Re: Getting Paid

I appreciate all the comments. So far I have not had a problem getting paid , except on 1 job that took over a year to settle a dispute and I was finally paid. I just wanted to know what the going rate $ % was for a deposit etc..
 
Re: Getting Paid

I rarely ask for money up front unless the job is going to last longer than one month. I have started to pre-lien any job worth more than I can afford to lose. Not exactly a 100% guarantee but a little something else to go to court with besides a contract. A log book helps prove what you did and didn't do, when you did it, etc. I am slowly learning that a log book is really the "secret" to it all.

[ January 10, 2004, 01:07 AM: Message edited by: kinetic ]
 
Re: Getting Paid

Be careful even a lien might not help.GC can still close on the house by putting up the money for a contested bill and then if you don't sue him he can get it back.There are some real slime balls out there.Best if they have been in business long ask who they have used before and call them.They are asking for credit so nothing wrong in wanting referances.If they refuse it might be worth a trip to court house to see if they been sued.Also licensing board keeps records of complaints.One old boy gave me problems on W-2
he was holding up a refund.Call to contractors licensing was did more than good,seems he had other problems over this EC and they were having a meeting that day anyways.My complaint added fuel to the fire.
Real worry is an owner builder they could be building with no bank loan and getting the money might be impossible even if you sue.You get judgement not money and they might never sell so your never getting paid.Renew the lean is all you can do.
 
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