Final Payment

joedonuts

Hi, i have personally completed a job for a homeowner on 7/13 /06. I told him the job was complete that day. He said he would send a check in the mail at the end of the month,thats when he pays all of his bills he says. In my proposal i did not state a payment schedule. I usually state in my proposal that final payment is due at completion of job. Does anyone allow final payment by 30 days? is this time allowance more customary?

AtlanticWBConst

Yes, it is absolutely.

However, we put in our contracts that payment is due upon completion of work. most pay then.

We are flexible with customers up to 30 days with residential work. it's the PROFESSIONAL way. If a customer were to ask the same: "how about in 30 days...." we say OK..no problem.

That can help with a future call back for more work ...

Commercial work is different....be prepared to wait...

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scottstef

i have gotton to the point that my estimates get inflated $200-$300 per draw. I then tell the customer that a check placed in my hand or an envelope postmarked within 1 business day is eligible for a $200-$300 discount. They think they are getting a deal and i get paid quickly.

AtlanticWBConst

That is always a good suggestion. There are many companies doing the same.
Hospital bill for $2500.00 from a hand injury at work: if we pay right away, we can save $450.00. Check is in the mail!!
Also, My oil company has been doing that forever.

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- Build Well -

River Rat Dad

I went out to eat last night. When the bill came, I told em to mail it and I'd pay it in 30 days...... boy did they get mad....

Mike Finley

Exactly!

Works done, pay me. Utter hogwash for a residential customer to expect commercial terms. If you want to give them terms, so be it. But I'm not.

Joe - send the customer a invoice stating payment due 8-30, that way at least you have in writing what you have agreed to if they decide to slow walk you. From now on since you actually own your business and can decide how you want to run it, put the terms in the contract how you want to be paid and never have to worry about this again. I may sound like a hard ass on this issue but this is business, works done, pay me, is that what you agreed to? Good, no deviations then.

I have had more than my share of customers that I have had no problem setting them straight. "You have a payment due at the end of tomorrow, is somebody going to be available write us the check?", Customers have come up with all kinds of questions but my answer is always the same one. "No, we can't do that" followed by a nice smile and silence as I stare them back in the eyes and wait. Magically, every customer has suddenly been able to overcome whatever issue they might have had and makes sure we have the money. No matter how friendly we are, no matter how great a time we are having working for them and them having us there, money is money.

PipeGuy

That's true, but...
After reading comments here I recemtly started requiring payment upon completion for "emergency" work. For instance,a property management company needed a fire hydrant repaired immediately (a car broke it off). I required payment by close-of-business upon the day the repair was affected. At first they called and explained nicely about 'monthly' invoicing and 30 day 'payment cycles'. They also noted how they didn't "walk around with a check book" paying bills. I likewise explained I understood the customary' payment procedures and that my 'policy' for such work required payment when finished. They got crappy about it and told me I must not be familiar with how business is done, yada-yada-yada and said they'd use someone else. Lo' and behold! Two days later guess who contritely called back? Regrettably, I was too busy to help at that point.
It's worth noting that in my state a lien against a commercial property on account of repair work performed can not be perfected unless the value of the work exceeds 15% of the property's value.

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Gordo

In Va.?

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Looks like some pros were here.

IHI

I dont know the legality of it all, but right now am owed...we'll just say ALOT from 4 customers, all of which stated in estimate, contract, and invoice payment due after job completion. Naturally I have seen nothing yet but am not over the 30 day period from billing date so I keep hush hush and consider it business as usual, but after the 30 days I get cranky and start sending letters etc...

Commercial work: invoice for as much as possible before work begins for material and labor only leaving profit margin to hang in the balance since it could literally be upto 3 months before seeing anything from them.

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joedonuts

Mike, so you state in your invoice/proposal that payment is expected in 8-30 days?

Mike Finley

Sorry Joe, I thought I was more clear. Final payment is due upon completion of the job. This is all business to consumer, not business to business. Consumers are not treated like B to B and they are out of their minds if they think they should be.

Further, we read this and have the customer initial this statement on our contract.

I understand progress payments and final payment are due at the end of each workday that has been designated. It is my responsibility to have these payments available so that work may continue the following day. I nderstand that work will not continue until a missed progress payment is made. I understand that if work comes to a stop because of missed or late progress payments the contractor has the right to place my project at bottom of contractors work schedule.

If a customer agrees to hire you to do work for them, just like you realize that completing the work is part of the deal, they should realize that paying you for it is also.

Mike Finley

I said for you to send them an invoice showing payment due 8-30 (August 30th) which according to you is the 30 days you and the customer have agreed to payment on this job. Only do that for this job, not all others, I would change your contract to payment due upon completion. The reason I say to invoice them showing payment due August 30th is you need to get something in writing with this customer. Say for instance you do nothing and August 30th rolls by and its October 30th now and you still have no payment. If you have something in writing at least then you have someplace to start instead of the customer saying we never agreed to 30 days, we agreed to 90.

PipeGuy

No, MD

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dayspring

AMEN AND AMEN, Pay up! I'm iz Done. Warranty will cover any problems, that is if you have any at all!

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AAPaint

Put that in your contract and you shouldn't have troubles again. Oh, and we have this second part here (thanks to some members on this site) in our contract as well.

You must define everything you expect in your contract or you are just asking for a customer to take advantage of you.

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-AAPaint

AA Quality Painting & Pressure Washing LLC
Jacksonville Painters
Jacksonville, FL.

joedonuts

Got it thanks! I really don't have this problem come up very often, i have one other woman that pays me by 30 days, drives me crazy!

joedonuts

This all sounds good to me thank you!

Stone Mountain

I have written into my contract that full payment must be made within 5 days or the warranty will be declared void. Do you think customers care? If one board is on crooked, or it cracks, they'll withold the full balance until the repair is done!
If they still won't pay, I'l take them to small claims court.

Usually, if I have to do some small repair, we'll not stand on principle, but we'll do it. Then, when I do get paid, I'll send them my warranty form, and in the section where it says "---" years from date of completion, I'll put "0". Then I'll underline the part where it says payment in 5 days.
When I get the irate phone call, I'll just explain that the contract specifies certain payment terms, to which they didn't adhere, and that contracts work both ways.

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