Deposits

Joel_3

Ok I send 3 trucks and 6 guys to a house today for a Unico. the guy was supposed to leave a 50% deposit with the wife for us , he didn't. So now what?? if we pack up and go I've lost today x6 guys and screwed up my schedule for weeks. Assuming they call and beg us back tommorrow with promise of payment. Not to mention they might freak and say forget it. of course I swear some Home owners Know I'm thinking this and do this stuff on purpose. Not all but some anyhow ,(my apologies to all you decent folks who do pay as requested , obviously this isn't directed at you anyhow!). Now how do you guys handle something like this??

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John@Reliable

I always get deposit BEFORE starting the job, will at least cover mat. if nothing else, if customer bulks at this you don't need them I think. Put it on paper and take time to pick up deposit

Gary Fereday

Trust has to start somewhere!

What "if" a contractor took the deposit and split? Same as the H/O not leaving "it" and hanging the contractor for 6 men and their wages as well as screwing up the schedual for weeks!. Dag gum it! Get it all on paper. Its called a contract! get it all. even to the deposit and how and when it is due! Spell out what happens "if" conditions are not met! The days of a handshake are over folks! 9/11 saw to that! promises make thin gravey! From either side! Get a lawyer(sorry) and have him set up a "contract" That you can use everytime! Then have another lawyer look it over and ask him if its a good one! Its just good business! The major big contractors do this for each job.
I know its a PITA but so is 6 men and six weeks screwed up! Kinda pay now or pay later! bigugh

Dave Yates (PAH)

new twist

Joel,
I've neber asked for the wife as part of a deposit! One is more than enough for me to handle(G).
Seriously, I've had this happen too & sometimes we've stayed to work (depends upon why they were late & why no deposit was on hand) and other times we've pulled off until they can come up with the scratch. The cost goes up according to my lost time because this is a breech of contract. If they're reasonable customers, they'll understand the increase, if not - you've lost less than if the stiff you for the balance.
Dave

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GW

I use the gut method

If you've been doing this for a while, like you have, I'd go with your gut, I do it all the time (well not all the time, we're COD for service)

Like the others guys have mentioned, you've lost money either way. Do you have a signed proposal? If they don't cough it up, you can pull out and get the lawyer involved.

How about not leaving the Unico equipment? Just drill their house the first day, send 1/2 the crew somewhere else.

Another thought is if you tick them off with a stern rebuke in the beginning of the job, they might sock it to you for the last payment. People are people.

Go with your gut, if something doesn't sit well, walk.

Gary

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jfox

contracts and payment schedules

As a homeowner/general contractor, I use a written contract that says what work will be done, when work starts, when it should be completed, and if it is not completed on time I can cover and deduct my costs from what I owe the original sub.

A 50% deposit puts me too far behind the eight ball. I wouldn't have hired the guy if I thought he would flake out, but what if some drunk runs a red light and takes him out? Puts me in a no win position.

I will pay the sub's cost for big ticket materials upon delivery to the job , 50% of list, so he can pay his supplier. The first day of work I pay 15% of the balance. I make progress payments at 40% and 80% of completion, and if there is anything outstanding at the end I will pay 95%. When everything is right I pay the last 5% and require a signed waiver of mechanic's liens.

This prevents either party from being too far ahead of the other's duty, so if something does go wrong it is not a catastrophe. The legal system is essentially worthless, except as revenge, IMHO.

All the best,

John

Joel_3

To clarify a little

We always have a written contract for anything more than minor repairs even for repeat customers. the terms are spelled out on every contract. We get a small deposit depending on the scale of the job as soon as the contract is signed. Obviously on a bigger job that takes months to do we"re not looking for 50% upfront but on a smaller job like a boiler changeout or Unico in a 3500sqft colonial (2-4 day job depending on particulars)i don't want to be chasing them. We've been going full bore for 3 months now , 8.45 and I just got home so it's tough to keep on top of everything 100%

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Bill_14

Sounds really complicated...

Why can't you simply agree to pay your subs based on monthly progress payments for work completed less 10% withheld until the sub is completed with the job?

Sounds like a sub has to negotiate with you to get his invoices approved and processed for payment.

Doesn't sound worth it to me, but I might be missing something.

Bill Russell