Do You Charge A Down Payment For A Larger Job?

brooksh

Just wondering if I should charge half at the start of a job and the other half at the end, or all at the end? What do you do?

Double-A

I'm staying out of this one this time. I suggest you do a bit a searching. This subject has been covered quite well once or twice with some nice pie fights thrown in for excitement.

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ProWallGuy

Excellent disclaimer AA. When are you announcing your candidacy?

I personally take a 33% deposit on any and all jobs I do, big or small. I'm not a bank, I don't care to finance anyone's project.

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genecarp

DEPOSIT + progressive payments. unless of coarse its an old established client, then i bill when i need $.

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Dan_Watson

1/3 to schedule, 1/3 at start, 1/3 at finish

rbsremodeling

For me its 10% down and progressive payments as we go along. 10% will usually cover plans and permits maybe demo depending on job size

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Jason Whipple

This is done many different ways. The most important way is to figure out the length of the project, and what your needs are throughout so you can keep the job on track and on time.

You can do it any way you want to, just don't change the rules somewhere in the midst of things and expect everyone to go along with it. Plan, Plan, Plan!

Oh, and know the laws of your state, you may not realize that there are maximum amounts already set in some states.

Love the disclaimer double A!

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Historic House Restoration, Cincinnati, Ohio
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JenkinsHB

if it's a job that will be 2+ months, i try to schedule progress payments to be paid every 2 weeks and provide them with a lien waiver for the money paid. helps cash flow and keeps the subs paid.

-Dan

Jake Stevens

On most jobs we are 1/3 down and balance when completed. On large job we are 1/3 down, 1/3 at the half, balance when completed.

kevjob

some states limit down payment check with your local laws first

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Kevin
Basement Finishing Highlands Ranch Colorado
Littleton Colorado, Basement Remodeling
Kitchen Remodeling Denver

wizendwizard

50% down, 40% somewhere near middle of project, 10% due upon completion.

I could care less what the state says, I don't cheat people and I ain't setting myself up to be cheated by people.

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There is no such thing as an illegal immigrant, they are either illegal or immigrants.
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poolcageman

Watch your State Statutues! In Florida anything over 10% and you do not submit for permit within 60 days Big Problems. Alot of guys during the Hurricane got nailed for taking over 10% and not submitting for permits.

MacRoadie

Here in California, excessive down payments are one of the top 5 easiest ways to get fined or have your license pulled. Maximum down payment is 10% or $1,000.00, whichever is LESS.

kevjob

Why not take 10% down and then 30% after demo or some small stage to stay within the states requirements?

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Kevin
Basement Finishing Highlands Ranch Colorado
Littleton Colorado, Basement Remodeling
Kitchen Remodeling Denver

wizendwizard

All of the senarios work. The point is really not to foot the bill for someone elses project. If you trust your homeowner do it at any rate you wish.

Be aware you can take a big hit if you leave too much at the end to be paid upon completion.

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"If you start the grout process over, you too could use sparkly grout!"
There is no such thing as an illegal immigrant, they are either illegal or immigrants.
I'm Retired, or a student, don't really know anymore.

wizendwizard

<<<<<<<<<<<<<<< Not in Cali.

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"If you start the grout process over, you too could use sparkly grout!"
There is no such thing as an illegal immigrant, they are either illegal or immigrants.
I'm Retired, or a student, don't really know anymore.

Jason Whipple

I swear, there needs to be a "California Contractors Talk"

(it's a whole different world there)

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Jason E Whipple, General Manager
Historic House Restoration, Cincinnati, Ohio
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Chris Johnson

In Cali when the materials hit the site you can invoice...I'm not a bank, I may get 30d terms, but you must pay now, if you don't want to pay for visable materials on site I think we are going to have an issue down the line and I want out now

Commercial there are no deposit rules...only applies to residential

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Chris

Meetre

Jason W got it right. What do you need? do you have payments for materials to make, subs to pay, payroll for employees, taxes, comp., insurance, rentals...the list goes on. How long is the project? We can't tell you the answers to these things, but you can. Plan it out, think about what you have to pay out, and set the payments from there. Ask yourself, "is this a pita customer?" maybe you need to front load the contract to cover your butt. Is this an old customer that I know? Maybe you bill 10% down, and weekly or monthly payments for expences. Once you have decided, add it to the contract. Questions?

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d-rez

I think it depends on the size of the job. The OP said 'larger job', which to me is $100K and up. If the client likes my proposal, but wants to work with me further on hashing details out, I charge about 5% of total projected budget, to work with them on details, taking them to showrooms, etc. Per my draw schedule in the Contract, I get another deposit(or earnest money) at signing. Hope this helps.