how to protect myself (getting paid) from a large tree clearing job?

[jonny37]

In the next few days i will be bidding on a tree clearing job...its a new cell tower location. There will be around 200 trees (average 40 feet tall) that need to be dropped and chipped up. The area is less than a football field and the land is relatively level. I have never bid a job like this, as most of our work is one off, residential work. My concern is getting paid. How do you guys bid projects that are around $15-18k and feel safe that you will actually get paid? Ive heard many stories about companies not getting paid doing commercial work. I would like to not sweat being in that group. The company that is in charge of this project is Elite something out of Louisville, Ky. Any thoughts? thanks guys

 

[ATH]

A contract? Then if they don't pay sue them.

I don't hear much of commercial work not paying, but taking a long time to pay is normal.

 

[Ted Jenkins]

It is a huge game to get large entities to pay. I raised my prices from 25% to 60% in the contract. Then I would offer a discount of 20% if paid in thirty days or less. It can take a large amount of resources to get collected including suing. Ask the rep what the parameters are. I would not hesitate to double the price to allow for a contract not to get paid with in twenty four months. Of course get a deposit and a draw at 50 % completion. Thanks

 

[Natster]

Or, put a compound interest rate, that compounds monthly.
Owed 15k. 10% simple interest, compounded monthly.
Late one month. Owes 16.5k.
Late 2 months, owes 16.5k+ 10% of 16.5k
And so forth. Simple interest compounds 10% of the total owed for each interest cycle.
Bankruptcy would be their escape. Attach the land with mechanics Lein too. Get legal desc. To land, and write it into the contract.
N

 

[Ghillie]

You may look into invoice factoring to cover your expenses while waiting to get paid. It’s a slippery slope so watch the fees closely. It can help carry the cost of labor while you wait to get paid.


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[ATH]

Or, put a compound interest rate, that compounds monthly.
Owed 15k. 10% simple interest, compounded monthly.
Late one month. Owes 16.5k.
Late 2 months, owes 16.5k+ 10% of 16.5k
And so forth. Simple interest compounds 10% of the total owed for each interest cycle.
Bankruptcy would be their escape. Attach the land with mechanics Lein too. Get legal desc. To land, and write it into the contract.
N

If you go that route, you had better be up on your Federal Debt Collection Procedures Act. One misstep, and it is not only a great LEGAL way for them to get out of paying, but could also find yourself on the wrong side of a criminal investigation...

 

[blades]

most of the legal notice stuff you need is sent to you every time you get a charge card bill- all that lovely fine print on the back of one of the pages- and most are 30% monthly not to mention a late fee as well like apx $75/mo.

 

[jefflovstrom]

We are a big company we don't do residential, and we do jobs on average between 60k - 200k, get a contract and should be no problem.
Jeff