How long is it taking you guys to get payment on commercial service work?

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bjp_ne_elec

Senior Member
Location
Southern NH
I have done commercial jobs in the past, but always new construction or renovation - so I always worked up a contract and it's terms involved progression payments - 50% at start, 25% at rough-in inspection, 25% at final inspection.

Now I'm working to pick up service work, as the renov and new construction - both commercial and residential have been so slow.

What are the terms you guys have worked out for payment of commercial service work? I turned in the invoice to my first customer, and basically indicated it was "due on receipt". Do most of you expect a payment based on a particular customers bill paying scheme?

Do any of you get paid the same day as the job is completed?
 
JacksonburgFarmer

JacksonburgFarmer

Senior Member
Location
Butler County Ohio
It varies on the customer, any service or T&M work is "due upon recipt". I expect payment within 30 days at latest, or we reinvoice. After that, I call and we talk. Most pay in 20 days or so when due upon recipt. It all depends on the customer....
 
tonyou812

tonyou812

Senior Member
Location
North New Jersey
bjp_ne_elec said:
Tony - thanks for that - but on average, what are you typically seeing for length of time from invoice to check in the mail.
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Most of the smaller companies usually send it within 30 days. But the few experiances Ive had with the larger companies, Toyota, Hooters and some others they usually go the distance 45 to 60 days.
 
480sparky

480sparky

Senior Member
Location
Iowegia
It all depends on the company I did the work for.

I have some folks who pay me before I leave. Not that I demand it, but that's the way they do business.

Others, particularly franchise operations, churchs & schools can take 2 or 3 months to crank out a check. It's inconvenient, but it's part of the business.
 
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ITO

Senior Member
Location
Texas
Commercial Contract work is billed on a draw schedule and paid somewhere in between 45 to 120 days depending on the GC.

Commercial service work is billed net 30, which means under the some circumstances stances you could get paid as late as 45 days out. If you can?t wait that long just be clear to the client that your invoice is due upon receipt or net 7 or whatever you need to work out. If your client can?t move that fast (some can?t) they should tell you and then you can decide if you want the work bad enough to deal with their book keeping.
 
Greg Swartz

Greg Swartz

Senior Member
Location
Colorado Springs, Colorado
It depends on the size of the company AND the size of the job...

One of the larger semiconductor companies, a $5k job took 30 days from invoice, and a $700 job I was paid via Credit Card the next day (told me to break it down to 2 invoices that were each less than $500)

A couple of Wolesley companies I do work for... Anything under $2k... I get paid before I leave. Anything over, it is supposed to be net 90, but I still get paid within 30 days.

A lot of small companies pay before I leave... so long as I have an invoice in hand.

All of my residential service work is paid before I leave.

Funny thing is... more and more of my commercial work wants to pay with a Credit Card...
 
Greg Swartz

Greg Swartz

Senior Member
Location
Colorado Springs, Colorado
Oh, and the mall is the worst!

They told me net 90... but after about 6 invoices, and 8 months, I had to send a collection agency on them.

It got their attention real fast.

Then they had the audacity to call me and ask how I charged interest on their bill?!?!

I told them to be happy I wasn't smart enough to tell the collection agency to increase the bill to add their "cut" to the price.

A very shor 45 days later I had my $400... yep only $400 stinkin dollars... which I had to pay $150 to the collection agency...
 
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satcom

Senior Member
Commercial service work, credit card, check day of work, in some rare cases, we will do 30 days, if they past 45 days, we send it to the collection. We are not in the banking business. Let some looser take on all the dead beat accounts, show me the money.
 
tonyou812

tonyou812

Senior Member
Location
North New Jersey
Greg Swartz said:
Oh, and the mall is the worst!

They told me net 90... but after about 6 invoices, and 8 months, I had to send a collection agency on them.

It got their attention real fast.

Then they had the audacity to call me and ask how I charged interest on their bill?!?!

I told them to be happy I wasn't smart enough to tell the collection agency to increase the bill to add their "cut" to the price.

A very shor 45 days later I had my $400... yep only $400 stinkin dollars... which I had to pay $150 to the collection agency...
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My collection agency is a guy name "Peter big nose"
 
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ITO

Senior Member
Location
Texas
If there were one place a lien really worked better than any other it would have to be for malls. Simon Properties turns from an 800lbs gorilla into Godzilla when they get a lien notice on one of their properties; they do not like it when you send a notice to one of their tenants they harshly deal with them and get great results fast.
 
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wireguru

Senior Member
ITO said:
If there were one place a lien really worked better than any other it would have to be for malls. Simon Properties turns from an 800lbs gorilla into Godzilla when they get a lien notice on one of their properties; they do not like it when you send a notice to one of their tenants they harshly deal with them and get great results fast.
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wierd. around here (so cal) the mall owners record a notice of non responsibility with the county when any TI work is taking place, and contractors working for the tenant cant place a lien on the property.
 
growler

growler

Senior Member
Location
Atlanta,GA
bjp_ne_elec said:
What are the terms you guys have worked out for payment of commercial service work? I turned in the invoice to my first customer, and basically indicated it was "due on receipt". Do most of you expect a payment based on a particular customers bill paying scheme?
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Are these commercial accounts local or are you having to bill corporate headquarter someplace? Some local accounts will pay basically as soon as it's processed so it will take from 7 to 10 days to get a check.

When you invioce corporate, then itn 30 to 45days.

Be carefull when billing commerical accounts, make contact with the accounts payable department. Don't let things like them needing proof of insurance or a form w-9 keep you from getting your money. Many people will tell you that the form is not required but some companies won't pay with out it. Once they set you up as a vendor there really is no excuse for them not to pay promptly. Find out what the local manager is allowed to OK without a PO number or even putting a job out to bid.

The accounts payable department won't mind if you call to get all the information to make you life more enjoyable. Most people are screaming a yelling at them for non payment so they like it when someone calls to get the correct information.
 
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