Standard Billing Procedure - Contractor Talk - Professional Construction and Remodeling Forum

Sparky Joe · 12-01-2008, 04:34 PM

After 4 months in my new home I finally have a sprinkler and landscape plan. Landscaper is anxious to start the dirt work and drop sod in spring.
No numbers have been discussed so far except that the home sellers title company has 4k reserved for front yard landscape.
Naturally I'd prefer front and back be done at same time because it's more cost effective and I'm a corner lot (fence negotiations will start when I get neighbors to split it with)
Neither myself, obviously, nor my lanscaper have dealt with this third party payment situation I'm hoping one of you guys are expert at it?

Is a standard contract(if there is such a thing?) 1/3 before start, 1/3 at halfway then 1/3 at completion?

Obviously our third acre will cost more than 4k; does the title company normally pay 1/3 of their 4k at each installment, or exhaust itself immediately?

Hope that made sense? Plus any questions I have no clue to ask....Thanks for the help.

-joe

ChainsawCharlie · 12-01-2008, 10:45 PM

Sounds like there will be two contracts. One with seller covering 4k and one with you for anything over 4k. My guess is that the seller will want 4K worth of work lisetd in their contract, and adhering to their schedule of thirds. If that only gets half the front landscaping done, then so be it. If the front comes in under 4k, you may want to see what they stipulate in the contract-can the savings be applied towards the back, or is a break for the seller?

The "standard" contract would likely be up to the company, or based on local law. Some local law limits down payment amounts.

When I deal with live plants, anything I don't supply from my own nursery, I have the client meet me at a nursery and pay for all plants there. For plants i supply, my existing clients get billed upon completion. New clients pay up front for all live plants.

As for materials, amount of deposit, if any is determined by the size of the job I'm doing. So I guess i don't really have a standard contract.

SLSTech · 12-01-2008, 10:52 PM

Correct me if I am wrong (yes I know each state is different), but the Title company doesn't really care - they just want to see the bill to release funds - that's all. I would verify that with the title company but that is probably the long & short of it - as far as they are concerned. Of course the longer they have the money - the more intrest they earn, but that is a diffrent topic.
The contract is between you & the landscaper - how it is written is between you two.