Getting Paid, Making A Deadline

SeamlessGutters

How long before you basically just tell a contractor that's it, pay or else.

Future business will probally be lots, but really who cares.

At the same time, I understand things get crazy and its not possible to get paid sometimes but really where to you draw the line and start perusing the money aggressively.

naptown CR

About 5 minutes after I ask for the check. But I do work directly for owners not other contractors.

480sparky

Depends on what our contract states.

Some contracts say payment due on completion.

Others are on a billing statement cycle.


It all depends on who I'm collecting from.

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Magnettica

What good is it working for a contractor who has a lot of work if you never know when you're gonna get paid?

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ampman

stick to original terms--anything other is a sign of weakness

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480sparky

And my terms vary depending on who the contract is with.

Unknown (re:new to me) builders / GCs / owners are literally COD. Good, well-established customers get a lot of leeway. At least as long as the checks keep coming.

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Site : the area or exact plot of ground on which anything is, has been, or is to be located.
Sight : The power or faculty of seeing; perception of objects by use of the eyes; vision.
Cite : To mention in support, proof, or confirmation; refer to as an example.

ampman

once terms are agreed on dont change terms later no matter who it is

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an army of sheep lead by a lion will defeat an army of lions lead by a sheep

Tiger

Exactly right. Typically as a sub it's 30 days max. If it goes past 30 days someone is ignoring my invoice. It becomes stressful wondering IF you're going to get paid. I don't think anyone would be stressed if a client paid like clockwork at 60 days. The stress is that it goes 30, 45, 60, 75, 90 days.

Be aware of the time when you need to file a lien to protect your interest.

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ampman

at this point you become the bank and need to charge interest

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an army of sheep lead by a lion will defeat an army of lions lead by a sheep

Tiger

I have a friend that does only commercial accounts. He had a company inform him that they were changing from paying at 60 days to paying at 90 days. He immediately increased the price of the contract to compensate.

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www.TigerElectrical.com

480sparky

As he should.

__________________
Site : the area or exact plot of ground on which anything is, has been, or is to be located.
Sight : The power or faculty of seeing; perception of objects by use of the eyes; vision.
Cite : To mention in support, proof, or confirmation; refer to as an example.

buildiq

Damn right.

However if I was a sub 90 days rings alarm bells. Unless I sat down with the GC and they showed me the Prime Contract which showed they were on 90 day terms as well (which I doubt) I would not be doing the work at all. If there's cashflow probs with a GC - run.