50% Up Front For Large Projects?

[CLEARVIEW TREE]

Any of yall get half up front on biguns to cover ars,mtls,fuel,etc.?

 

[John Paul Sanborn]

Check with legal counsel on taking earnest money, you put certain constraints and obligations on yourself when doing so.

In WI you can get hit with triple damages if the work is not done in a timely manner. Make sure your contract is worded tightly.

IMO 50% is rather high, maybe 10% with clauses requiring billing and payment for services rendered before work continues.

 

[Brush Hog]

Not so much with tree work unless clearing a house lot or something. I do though when doing a landscape install(different situation though) and I do collect 50% upfront and the other half when done.

 

[glenn31792]

Big down payments might scare a few good customers away. Then again you need to
cover what your upfront expenses are.

I usually have a section in the contract that goes something like this-
If payment is not received by 00-00-2008 the payment will be considered late and
turned over to a collection agency. The person having the work done, agrees to pay
the fee I incur from the collection agency + the original bill.
I use X collection agency and their rates start at 400.00 an hour.
Have them sign or initial by this section.

 

[reachtreeservi]

On a big job, I break it down into sections. The first section is always one or two days of work.
Then get paid for each section as they are completed.

That way the customer is always paying for work that's already done, and I never get took for more than 1 or 2 days of work.

My contract mentions both a one time 10.5 % late fee and that all legal and collection fees are recoverable.

So far, I've never been stiffed. But I have walked away from a few.

 

[lxt]

When its done!! I never do up front or % base pay, this is where you need to have working capital, the State Park Job I just landed has a 30 day pay out upon invoice submittal.

I did this year however have a guy send me a check for payment in full but was of his own accord, he wanted to make sure he was on my list as it is filling up very fast!!

My policy is when we`re done & the HO is happy thats when we get paid...Unless & I tell them this, you are unable to be pleased/happy..then regardless payment is due!! some people think that you should do more than what is in the work order & if not they get a little upset/unhappy..Not my problem I did what was agreed on!!

Many HO`s have been take advantage of by contractors & this is kinda my way to helping them feel better & eliminating any thoughts of being stiffed BUT....you need to have the Capital to do such!!


LXT...........

 

[capetrees]

I've never asked for pre payment. The customers have asked but they love it when I don't require it and reply that it keeps me honest and that they will have the final say that the job is complete. I also remind them that by not paying me, it makes me come back to do or finish the job thus keeping them safe. They're always amazed at that attitude and always ask me back to do more work.

 

[CLEARVIEW TREE]

When its done!! I never do up front or % base pay, this is where you need to have working capital, the State Park Job I just landed has a 30 day pay out upon invoice submittal.

I did this year however have a guy send me a check for payment in full but was of his own accord, he wanted to make sure he was on my list as it is filling up very fast!!

My policy is when we`re done & the HO is happy thats when we get paid...Unless & I tell them this, you are unable to be pleased/happy..then regardless payment is due!! some people think that you should do more than what is in the work order & if not they get a little upset/unhappy..Not my problem I did what was agreed on!!

Many HO`s have been take advantage of by contractors & this is kinda my way to helping them feel better & eliminating any thoughts of being stiffed BUT....you need to have the Capital to do such!!


LXT...........

I often do work for a friend that's Dir. of Pks & Rec. of a local city. He always asks me on larger projects if i need any funds up front to cover expenses! Actually i've never taken any up front from him, and should really because the girl at City Hall drags her feet to get me my money when finished(usually 5-6 weeks). I'd never charge the city a late fee though, i'd lose that one in a heartbeat! And it's not a capital thing either(6th yr of biz), it's the daily progression of unscrupulous contractors that fly by night and ask me to come out and do some risky work that in your gut make you nervous ya know!opcorn:

 

[tomtrees58]

haft wen job is 50% done not be four tom trees

 

[kkottemann]

When there is a crane involved and a couple days of work, I usually get the percentage on day one of the job to cover the cost of the crane. I will get the rest when the job is finished. Also, when I get a big planting job, and the cost of the trees run in the thousands, I will get the cost of the trees up front.

 

[highasatree]

I've never asked for a down payment, have been asked if I wanted some $ up front. I usually tell them when the job is done and when you are happy with the work performed, we will settle up.
On a very large clearing job my contact told me to bill him for half the amount when we got to that point without even asking for it, that was $30G,s

 

[ASD]

Check the law in your STATE !!!!!!!!!!!!! In ca. you can only get 10% or $1,000 which ever is LESS before start of work.

 

[Frank Boyer]

Check the law in your STATE !!!!!!!!!!!!! In ca. you can only get 10% or $1,000 which ever is LESS before start of work.[/QUOTE


My way around that was to get a substantial down when the tractor/materials arrived. I used to do jobs with a lot of materials and I always wanted enough to cover the materials by the time they were on the job.]

 

[John Paul Sanborn]

My way around that was to get a substantial down when the tractor/materials arrived. I used to do jobs with a lot of materials and I always wanted enough to cover the materials by the time they were on the job.

One way to cover this, or crane work, is to require the client to contract that side out. You do the leg work selection and such. Though some clients are leery of contractors who do not have the operating capitol for the job. I've done it where the stock is selected from a vendor who will do free financing for the home owner, 90 days same as cash...

 

[ASD]

Check the law in your STATE !!!!!!!!!!!!! In ca. you can only get 10% or $1,000 which ever is LESS before start of work.[/QUOTE


My way around that was to get a substantial down when the tractor/materials arrived. I used to do jobs with a lot of materials and I always wanted enough to cover the materials by the time they were on the job.]

The 10% thing is befor work as soon as you step foot on the job you can charge anything you want for move in fees