Billing

kenscar

After you've presented a client an invoice, how long do you wait until you pester them about payment? I've had several clients go three to four weeks before getting me my check, which is irritating. I've heard that, by law, once you've been given a bill you have two weeks to send a check. True?

rbsremodeling

About 5 minutes

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Steve Richards

I feel your pain, Ken

I got a check TODAY that I've been waiting for for 7 GD weeks.

I had a letter ready to send the building owner...tattletaling on his property management company.
My favorite line line read: "I don't understand how anyone (or any company) can get away without paying bills at least once a month..I know I can't."

But now that I have the check, my fury has somewhat subsidded.

Does everyone in CO think us painters are so rich we don't need to be paid ASAP?

Chris Johnson

Do you guys not have a contract with payment terms? or on HO work do they not sign a return the proposal with a payment term listed at the bottom?

When I am working for a owner/builder I invoice every 2nd Wednesday, check due on Friday...no checky, no worky on Monday

Builders, net 30d or they will negotiate to follow their draw schedule with the owner...which is usually better then waiting 30d

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Chris

threaderman

Most residential work is C.O.D.,Commercial usually takes a month but I push for 10 business days.Most are good about it.

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Joe ---International Code Council Member

Your plumbing & gas specialist proudly serving Oklahoma City OK, Moore, Warr-acres, Norman, Midwest City, Edmond, Bethany, Forest Park

Steve Richards

I've never had to wait 7 weeks before, and I won't have to again.

I've worked for this building owner for 25 years...this is his new management company...we'll get it straitened out.

MakDeco

Residential repaints for me and its remainder on completion. There is no need to send me the check when I am there to collect it. They see the work is done and completed. I warranty my work if there's a problem down the road and its my fault I will take care of it.

The home owners assoc. I do work with its usually no longer then 14 days after invoice is submitted.

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MAK Deco

Steve Richards

Yeah...residential is always "balance due upon completion"... and I've never had a problem.

Property management companies aren't as simple. I called and talked to the bookkeeper 2 weeks ago.. and got a "I'll be writing that check today" from her.

what a pain

98mustangguy

Same here I do a final walk around then get the owner and do a final wilk around with them and expect paymnet right then. Contract even states payment is due imediately upon completion. no way would i wait 3-4 weeks i need to eat too

paintr56

My policy is payment upon completion. 95% of the time I leave the final day of work with a check. I make arrangements for this the day before I am to finish. Customers I have built a relationship with I may have them mail me a check if they can not be around or I will pick it up later in the day or the next morning. The exception to this is if prior plans have been made and I am choosy about making them. I do work for the county about once a year I know they pay two days a month and expect to wait. I am currently waiting on a national guard check but I was told they take a long time and bid accordingly.

Jim

mark942

IMO Chris has hit the nail right on the head..................

Steve Richards

A lot of my clients quit asking for contracts years ago. If I don't have a contract then I have no recourse other than re-fax a bill, or call them on the phone.

BTW...I've NEVER not been paid, but I've had to wait a month plenty of times.

But again..I'm talking commercial. Residential is simpler.

gideond

Being a retail store we work a bit differently. We bill everything out at the end of the month and our invoices clearly state you have 30 days to pay before you start to accrue interest charges. At 2% per month people usually pay in a timely manner. There are still people who take 2-3 months to pay and then raise hell about finance charges showing up on their statements, despite a clearly stated notice on their bill.

kenscar

Some good points here. I've been meaning to put payment terms on the bottom of my invoices - "payment due within ten business days" or something like that. But then if you still don't get paid what can you do and still maintain a good relationship with the client? Most GC's seem to be in the same boat - they have to get payment draws from the HO before they pay me, or that's how they play it. I'm doing some T&M jobs right now and that's REALLY a billing pain. Sometimes at the end of a job I'll spend weeks going back to the site to touch up this and that - but I can't wait that long to get a check. So do I just do the little touch-ups pro bono? I think NOT! I've never not been paid either, but I've waited over a month for a check a couple of times while my bank account drains down to 0. There's got to be a better way.

MakDeco

Ahh the joys of working for GC's its good not to be in that boat

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MAK Deco

Steve Richards

I'm going to (on my next bill to that "paying me in 7-weeks" company) add to the bottom of my invoice some "terms".. Probably 1.5% per month. I don't work for them often though.

I do understand your problem though, Kenscar.

If we make too big a deal about needing money (to me anyhow) you/I seem less "stable" as a business.

..but if you DON'T make a fuss...you're liable to no longer be in business at all.

(and that seems even less stable)

Steve Richards

I've thought about: "payment due within 10 days, lien placed on property after 30"

now THAT would get some action!

Not many call-backs though.

rbsremodeling

Ken here is what my contract and draw schedule looks like. I am providing it for a guideline only. Always have an attorney review all legal documents.

This contract will self destruct in 15 days if not accepted

rb contract2_J91.doc

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Steve Richards

Pretty decent lookin', rbs.

I don't know about kenscar..but if I show up @ most of my old clients places w/an 8 page contract, they'd probably think it was a joke.

Steve Richards

..maybe not if it was for a 150k job though!