Paying A Window Subcontractor

slowforthecones

Question - do you home builders pay a window subcontractor a downpayment for the cost of the windows? On a $25k window job, should I be paying $5000 down payment for windows?

Patrick

I would make you give me $8300 before we order a single window

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Originally Posted by Celtic
Like I said...I'm sure you are very good at what you do ~ whatever that is and where ever it happens.

CookeCarpentry

Maybe order the windows on your account, then hire a sub to install?

slowforthecones

I gotcha bro..but this is a business to business arrangement, so I suppose $5000 is reasonable. Thanks. In the past I've had subs only ask for $2k down and the remainder once the windows are delivered on-site.

Patrick

a lot of it depends on what their profit margin is. we have also done some work with 20% down 30% at start

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Originally Posted by Celtic
Like I said...I'm sure you are very good at what you do ~ whatever that is and where ever it happens.

slowforthecones

I'm a bit afraid of the sub screwing me over, so the job is alittle further than where I usually do fire restoration... recently a few fellows homes got burned in the "station fire" in southern california. Got calls off the hook from word of mouth referrals.

CookeCarpentry

Seems like this is more of a reason to purchase the windows on your account. At least you know they are ordered and paid for.

Worst case scenario would be being burned for a smaller labor only downpayment from a sub.

Just my 2 cents...

slowforthecones

I have a call into the sub. I am going to tell him that he can put a hold/charge on my credit card and reverse the hold once the windows arrive. I will pay him in a check instead on the spot. Do you think that is reasonable since I have not worked with this firm before?

CookeCarpentry

So basically he orders them using your card to pay?

slowforthecones

I meant to say he charges my card for $5k, I pay the added cost for the processing up to 3% in lieu of a check payment since I never done business with the guy and want to protect myself from him walking of with my cash.

with credit card, no delivery of goods is a good charge back.

W-Tinc

Maybe you could just write the supplier a check. Even better buy the windows and have them on site for him to start, no need for any deposit then.

You are new to him too, no offense but when a customer does not want to pay a deposit on expensive materials that tells me they are probably not going to be the greatest people to work for.

IHI

After being screwed out of tens of thousands over the years i'm an azzhole on preordering items, esspecially special order stuff like windows, i get 100% window cost up front before i place the order that way if somebody wants to screw me i'm not stuck with thousands in windows i cant do a thing with since they're ordered for their job. I dont care if it's a freind, contractor, whomever....i've met ALOT of good folks and put my credit/accounts on the line; then they burnt me hard....so if they dont do the 100% window downpay, i got plenty of other things i can do, i'll gladly lose an account/client/assotiate vs losing my azz ever again...my house could've been paid for free and clear with the amount i've been phucked over on in the past 9yrs.

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HSConstruction

it sounds like your trust for this sub is 0, why did you hire someone you do not trust?

As mentioned before MY down down payment would cover the windows so I am never out of pocket if I get screwed

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72chevy4x4

it's all been covered above; you don't trust him, he doesn't trust you. You shouldn't trust him-talk to his references including the rep he's getting the windows from. He shouldn't trust you-I wouldn't trust someone out of the blue but a larger company would make me feel more comfortable. 25k is a lot for windows in my neighborhood-I can put remodels in an entire house for $6-7k. From his stand point-if you turn and run, he's stuck with the windows AND he has to pay for them...that's enough to break some small time operations.

the mention of you writing the check to the supply house is a good one if the sub's ok with it. If it were me, I wouldn't feel comfortable floating a really large order like that unless a healthy profit margin was built in, the materials would be installed as soon as they arrive and payment wouldn't be an issue (now we're getting into the trust thing again).

slowforthecones

I work in the north part of the state, recently I had a bunch of referrals from past customers relatives/collegues/friends in the south part of the state due to the forest fires here in California. So instead of importing northern state window subs, I'm trying out local window subs.

slowforthecones

Yeah it's a trust issue, he can charge my credit card though. I figured out either pay his supplier with a check or he can charge my credit card.

Patrick

why dont you make him break out his labor and material costs for you too while your at it

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Originally Posted by Celtic
Like I said...I'm sure you are very good at what you do ~ whatever that is and where ever it happens.

slowforthecones

Got a call in from him, thanks guys for the advice. he agreed to let me pay his supplier directly the cost of the materials $12k which I did today with a check via FedEx.

dougchips

Trust me with 1/3 of the project cost upfront and I'll trust that you will pay me the other 2/3 when I am done. IMHO, if someone does not trust me then they should do business with someone that they trust.

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Wilson518

Paying $5000 down payment is a reasonable price.If ordering from us,the deposit will be 30%-40% of total amount,the rest will be paid before shipment.

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