New Construction Payment Schedule

 
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Old 07-08-2006, 04:19 PM   #1
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New Construction Payment Schedule


Is anybody getting money down from builders? Sorry, I haven't done much new construction for myself and want to be prepared. I was hoping to get 20% down to cover some labor at the least. I usually get 30-50% from HO's, but haven't worked for builders yet. I've got two custom builders interested. They know my work and want to do business.

Any help will be much appreciated.
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Old 07-08-2006, 04:24 PM   #2
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Re: New Construction Payment Schedule


If "they know my work, and want to do business", then tell them you get a portion down. If they balk, ask them if they build a house with no money down. But my experieince is they don't like to part with a penny to the lowly painter. Plus, new construction is a headache. Personally, I stick with re-do's. More $$$, less stress. BTW, nice website. I dig the joblog.

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Old 07-08-2006, 04:35 PM   #3
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Re: New Construction Payment Schedule


Thanks PWG. I appreciate it. Never hurts to look like you don't need the work.

And thanks, put that site together myself. I really need to add pictures to that jobblog. Would make it more interesting.
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Old 07-08-2006, 05:40 PM   #4
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Re: New Construction Payment Schedule


Guess what I'm doing tomorow...
Going to my last new construction...did last winter... to fix cracks ..AGAIN!
the houses settle in a few months and wammo... cracks allover... I get money down on EVERY job... even a deposit right now at signing..don't care if I'm going there in a month.... I'm kinda backed up right now.
New construction is a headach.. some guys make a good living at it.. I might someday put a crew together just for that type of buisness.. but for now... it's repaints... infact I'm leaning to restoration of old houses.. love those 17,18,1900 yr old baby's with the collums out front!
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Old 07-09-2006, 07:48 AM   #5
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Re: New Construction Payment Schedule


To be honest with you, I'd love to do older homes too. Much more work, and a lot more money. Less hassle, and if you can do it, the local historical society will pay for the restoration. I've seen a couple of guys get burned that way though. They pay out to the HO, and you're out of luck if he spends your money before you get it. Still, it's worth the risk. Gives you a few nice, dramatic before and after pics too.

Problem is, I'm just starting out. I honestly don't want the hassle of hiring a full crew right now, but work is work, and $4.50 a square aint bad. With extras I can get 25% profit off that for six months out of my first year in biz for myself. It's pretty tempting.

A quick note, I can't PM until I've got 20 mssg and don't want to spam the board. I like this place. E-mail me if you need to talk to me. Don't mind a bit.
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Old 07-09-2006, 10:18 AM   #6
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Re: New Construction Payment Schedule


Some of our subs ask for a percentage up-front to get on the schedule. We have no problem with that and just consider it one more good reason to use the subs we use.

Beautiful web site. I had only one comment about it.

With my browser (I.E. 6.0), your name etc. is pasted to the top of my screen. Perhaps a border area of background color to visually "move it down a bit"?
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Old 07-09-2006, 04:03 PM   #7
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Re: New Construction Payment Schedule


Thanks for the input Double-A. I'll look at the site again. I kind of threw it together a few weeks ago. Need to update it a little bit, I think, at the least. I've got a few sample pics to add.

The consensus seems to be, "if you think you're worth it, ask for it." I like that attitude, and it does fit nicely into my marketing plan.

Thanks for the good advice guys.
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Old 07-09-2006, 06:07 PM   #8
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Re: New Construction Payment Schedule


We draw a third to start, a third halfway and final payment at completion. Pretty standard here. It is though against the law in this state to take more than 50% up front for a contract.
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Old 07-09-2006, 06:12 PM   #9
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Re: New Construction Payment Schedule


What's so bad about new construction?
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Old 07-09-2006, 06:58 PM   #10
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Re: New Construction Payment Schedule


Ron,
New construction painting can be a bit more challenging than repaints. Usually we're dealing with builders who expect top notch work at bottom of the barrel prices. Often times we're expected to work around other trades (Yeah, plumbers, electricians, carpenters etc) with wet paint on the walls. Some guys are tough to get money from in a timely manner. I imagine most of us here regularly work with a few builders who are great. I truly appreciate the builders who treat me fairly. Howevever, fair builders (much like good painters ) are hard to find.
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Old 07-09-2006, 07:02 PM   #11
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Re: New Construction Payment Schedule


nicely put.
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Old 07-10-2006, 09:37 PM   #12
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Re: New Construction Payment Schedule


I am a gc but we have our own in house paint division , and get paid in 1/3 after we have primed, after all trim painted, then after final. Most builders do not want to pay up front and I do not blame them. I do not want anyone here to take this wrong towards them, but it is bad business to pay your subs before they do the work, even a deposit(new construction). I have no problem if it is a big job paying them for what they have already accomplished, or setting up a draw at certain points but builders here generally frown on money up front. I am only speaking about new construction, and am basing this on legit contractors not somebody trying to weasel out of paying you. If a builder has been a slow pay in the past then I would definately change my billing practice. Just my two cents. Again no offense meant to anyone here
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Old 07-11-2006, 09:11 AM   #13
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Re: New Construction Payment Schedule


That's exactly why I won't even bother with new construction. There's no way I'm financing labor and materials on ANY other persons job whether it's a homeowner, or another business. I've seen a number of GC's around here use that method as a way to ditch someone without paying them for whatever reason whether it be they ran out of money, or just didn't feel like paying out...and I've seen a few people lose their rear on deals like that.
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Old 07-11-2006, 09:21 PM   #14
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Re: New Construction Payment Schedule


aapaint,
I think you are missing out on a good opportunity with that outlook. Again you have to find good honest gc's. I like to think that some of us are still out there. Talk to other subs other builders, they will let you know who is a good paying builder, and who is not. We generally charge between 2.00-5.00sf(examples only) and do not have to deal with any furniture, carpet, etc. Some of the builders we paint for will have 10-15 homes going on at once. Lowers my guys travel costs, and gives me time to line up next months work. I know you have had some bad experiences, but if you can find a good builder, new construction can be a very steady income, that can lead to future custom paint jobs.
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Old 07-11-2006, 09:32 PM   #15
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Re: New Construction Payment Schedule


I like the website Jonesey...I might have to twist your arm since you are a fellow okie now to make one for me.

I use a painter who also does all my taping and bedding, and I pay him fop the materials up front...but I know him and he knows me..I might hesitate to do this with someone I do not know...I want to see the quality of work and hear good things about someone before I shell out advance money.

I also will but the materials and then pay labor weekly to get a guy going, but in this case, I will not advance any labor money, period.
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Old 07-14-2006, 03:59 PM   #16
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Re: New Construction Payment Schedule


If you feel you have a good relationship with this builder than by all means go for it. Ask to get paid on 1/3 policy and get it on paper. Do not ever start a new job for a builder untill you have been paid on the last one.
Don't get to dependant on them either. Diversify your business.
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Old 07-15-2006, 11:28 AM   #17
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Re: New Construction Payment Schedule


Thanks guys, I appreciate it. I'm still a little new at the B side of all this. I'm getting my feet, but it's taking a while.

If ya'll need anything, just ask.

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