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House Frame Payments

 
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Old 07-27-2012, 02:37 PM   #1
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House Frame Payments


How do you like your payments for a house frame?

1st Floor and walls 25-30 %
2nd Floor and walls 25-30 %
roof 25-30 %
completion and final inspection 10-25%


For a cookie cutter subdivision house, I dont mind waiting for a 1 time payment when house is complete, but for a private custom house I like to split it up so I'm not to far in when I realize it gonna be hard to open their wallet

Plus if not up to date on payments have a reason to sit at home till they pry their wallet open.


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Old 07-27-2012, 02:39 PM   #2
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Re: House Frame Payments


You get nothing to start? Pretty much closes that project.

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Old 07-27-2012, 03:48 PM   #3
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Re: House Frame Payments


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Originally Posted by Kent Whitten View Post
You get nothing to start? Pretty much closes that project.
I should ask for something up front but here in Mike Holmes country people are reluctant to give money for nothing.

im fine with that because depending on size of house I can be ready for 2nd floor in about 3-5 days so I'm not waiting long for first payment

I do tell them from the start that any delay in payment will cause a delay in production and I find that this is a good enough arm twist

Really trying to get a feel what other people do so I can be fair

In a perfect world I would ask for 100% up front then build, like they do at some gas stations in the middle of the night (pay then pump)



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Old 07-27-2012, 04:33 PM   #4
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Re: House Frame Payments


On most frames I get a half draw when we are ready for trusses or stick, and the rest on completion. Anything under 10 g I will usually not get any draw. For the Mcmansions, I usually bill out bi weekly.
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Old 07-27-2012, 10:09 PM   #5
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Re: House Frame Payments


A couple builders I've framed for have a set schedule by completion percentage, usually with a 5% retainage until inspection. One of those, a higher volume mid-priced builder, is bill on Friday, pay the next Friday. The other, a big bucks custom builder, is bill on 10th and 25th, pay on 15th and 30th. Some smaller builders I just ask for a draw loosely based on progress. The biggest problem I ever had was one company that was bill on the 20th, paid on the 30th, period. I started on the 23rd. It was 5 weeks before I saw a dime. I had to take a 10-day note at the bank based on my invoice!

The project I'm on now for 22 handicap duplexes, I email an invoice about 10 o'clock Thursday nite, Lisa calls me at 10 Friday morning, says my check is ready. I've even had them tell me " Ah, we'll be out of the office Thursday and Friday, would you like your check Wednesday?" Duh!

But in 30 years, I've never gotten a dime up front
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Old 07-27-2012, 10:27 PM   #6
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Re: House Frame Payments


Maybe you guys arent dealing with banks but around here the lender sets the schedule. Foundation excavation/rough frame/exterior complete/rough ins, insulation/then a final. Feels like there's another one in there but they are pretty anal about giving money until all of the certain phase is complete. Its also pretty difficult to try and cheat the system and try to get more for foundation to get ahead of the game to far.
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Old 07-27-2012, 10:34 PM   #7
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Re: House Frame Payments


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Originally Posted by jkfox624 View Post
Maybe you guys arent dealing with banks but around here the lender sets the schedule. Foundation excavation/rough frame/exterior complete/rough ins, insulation/then a final. Feels like there's another one in there but they are pretty anal about giving money until all of the certain phase is complete. Its also pretty difficult to try and cheat the system and try to get more for foundation to get ahead of the game to far.
Understandable but that would be between the GC and the HO's bank.

A pay schedule for the framer would be between them and the GC. So if a HO is playing GC then they need to pay the framer on whatever schedule they worked out. Nothing to due with the bank. Well....unless that is what the had agreed upon.
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Old 07-27-2012, 11:37 PM   #8
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Re: House Frame Payments


I'd get enough to pay for the materials before I start ... At a minimum
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Old 07-27-2012, 11:39 PM   #9
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Re: House Frame Payments


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Originally Posted by CrpntrFrk View Post
Understandable but that would be between the GC and the HO's bank.

A pay schedule for the framer would be between them and the GC. So if a HO is playing GC then they need to pay the framer on whatever schedule they worked out. Nothing to due with the bank. Well....unless that is what the had agreed upon.
Yeah sorry had a few to many tonight was thinking more on the GC end then just a framing sub.
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Old 07-27-2012, 11:42 PM   #10
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Re: House Frame Payments


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Originally Posted by jkfox624 View Post
Yeah sorry had a few to many tonight was thinking more on the GC end then just a framing sub.
Man.....all you guys drinking!?!?! I think I need to catch up!


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Old 07-28-2012, 07:00 AM   #11
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Re: House Frame Payments


I started a Mcmansion once about a week before Christmas. It was for a builder whom I had worked with quite a bit. On day one, he asked me if he could cut me a check for half of the framing. I was a bit stunned, and told him I would prefer not to be that far ahead with his money. My brother, who was at that time my partner, was standing nearby. After the GC left, I asked my brother if he had heard our conversation about the money. "Yeah, I heard it, he said. I just can't believe you turned it down.

The whole thing hinged on the GC wanting to have some extra $$ going out on the last week of the year for tax purposes. Of course for me, having extra dollars coming in that week was gonna greatly increase my tax bill.
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Old 07-28-2012, 07:25 AM   #12
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Re: House Frame Payments


bill 25th paid 15th month after the end of the next month so around 50 days from date of invoice.

this is on large projects only dont do one offs

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