Payment schedule

[elvis_931]

Most of the residential jobs I do, I invoice 60% after rough-in and 40% after final. I did a 1200amp busrail installation not too long ago and in my proposal in the paymet section I put: $X.00 up front; $X.00 upon completion. The guy said that the purchasing dept. did not allow up front payments. My question is: If you had a large job(like a hospital or something), the total price for mat. and labor, etc. comes to $125,000.00 What would your payment schedule possibly look like in a proposal. I am looking for some sample verbage please. Is there a sort of "standard practice" in payment schedules?Thanks in advance.

 

[ITO]

check your pms...

 

[brantmacga]

Most of the residential jobs I do, I invoice 60% after rough-in and 40% after final.

You may want to rethink that strategy. When I first started I billed the exact same way, and lost money on a couple of jobs that flopped because 60% didn't cover what I had in it at the rough.

 

[480sparky]

You may want to rethink that strategy. When I first started I billed the exact same way, and lost money on a couple of jobs that flopped because 60% didn't cover what I had in it at the rough.

Then you should have included a clause in you contract to state you get paid something in case the job falls flat part way through.

 

[short circuit faulted]

Normally larger jobs, schools, hospitals, goverment use AIA billing documents - you as a contractor have to submit a schedule of values for the work - document name is A G703 Continutation sheet and it usually breaks out as labor and material to task, such as Deep Feeders, Slab Rough, wiring devices, distrubution equipment, feeder wiring, branch circuit wiring, telephone data securtiy conduits, and fire alarm - It is usually a good idea to include the line items Moblization (Normally 4% of contract) - Daily Clean up - and commissioning of systems - key to this is just like residential in that you build the up front items such as deep feeders "heavy" so that you if you run a good job get in the black and stay that way for the entire job - Flip side of coin the continutation sheet will quickly tell about troubles if you have billed for 70% of an item and have only really completed 45% -
below is a cut paste sample covering general areas of work or site work without going into the specific building areas - Normally these type pay applications - are built on a excel spread sheet where the continutation sheets as you show work completed feed the billing sheet or AIA G702 - Hope this helps...

Steve

10 Allowance Special Systems - w Profit & OH 28,890.00
20 Allowance Theatrical Lighting - w Profit & OH 208,008.00
30 Allowance Theatrical Sound - w Profit & OH 173,340.00
40 Payment & Performance Bond 47,110.00
50 Mobilization 78,500.00
60 Commissioning & Testing Systems 22,980.00
70 Temporary Power & Lights - Labor 28,590.00
80 Temporary Power & Lights - Material 31,980.00
90 Site UG Elec/Phone/Lgts Labor & Equip. 43,900.00
100 Site UG Elec/Phone/Lgts Labor & Equip. 59,345.00
110 Site Generator/ATS & Conduit & Wire Labor 17,280.00
120 Site Generator/ATS & Conduit & Wire Mat. 26,730.00
130 Service Entrance Conductors - Labor 9,850.00
140 Service Entrance Conductors - Mat. 22,035.00
150 Labor & Equipment - Install Tower 8,905.00
160 120' ITFS Concrete Tower - Mat. 14,127.00
170 IFTS Duct Bank to Bldg. - Labor&Equip. 8,558.00
180 IFTS Duct Bank to Building - Material 7,163.00
190 Power Distribution Equipment - Labor 52,328.00
200 Power Distribution Equipment - Material 173,257.00

 

[brantmacga]

Then you should have included a clause in you contract to state you get paid something in case the job falls flat part way through.

Read:

When I first started

You're a couple of years late on the advice.

 

[480sparky]

Read:



You're a couple of years late on the advice.

Better late than never! :grin:

I was actually more for the benefit for all the other readers.

 

[satcom]

The guy said that the purchasing dept. did not allow up front payments.

You made my day, I am rolling on the floor, just today the sprinkler contractor told the purchasing agent he need to get him a check up front, the purchasing agent ran all the back to get him a check, the deal is, if you let then play you, they will try anything, i have even seen some tell the contractor they pay in 60 to 90 days, then they go back to the office and have a good laugh if the contractor accepts terms like that.

 

[growler]

I invoice 60% after rough-in and 40% after final.

Try this one, invoice 60% after the rough-in and 50% after final. When they ask you to explain your billing just tell them, "I give a 110% so I expect to get 110%". :grin::grin::grin: