State And Local (Government) Contract Down Payment? - Business - Contractor Talk

State And Local (Government) Contract Down Payment?

 
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Old 06-01-2015, 10:33 PM   #1
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State And Local (Government) Contract Down Payment?


Does anyone have any experience with State and local contracts? I need to know if they allow for a start-up down payment? Any help will be greatly appreciated.
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Old 06-01-2015, 10:36 PM   #2
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Re: State And Local (Government) Contract Down Payment?


Never heard of one doing so.

Refer to your schedule of values & billing procedures.

You need cash/line of credit ti play the Public Works game.

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Old 06-01-2015, 10:38 PM   #3
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Re: State And Local (Government) Contract Down Payment?


Cool, thanks.
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Old 06-04-2015, 07:07 PM   #4
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Re: State And Local (Government) Contract Down Payment?


Check the bidding line items, if there is a mobilization line item use it for some start up money. You will have to float the first month or so until the first billing cycle, but you can front load the mob. To get money started. Happens all the time in state work here, but they'd have gotten wise to it. There is now a percentage of the contract limit that can be put into the mobilization as I got pretty out of control with the amounts.
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Old 06-11-2015, 04:28 PM   #5
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Re: State And Local (Government) Contract Down Payment?


I posted in the wrong thread.
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Old 06-12-2015, 11:57 PM   #6
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Re: State And Local (Government) Contract Down Payment?


It takes 4 to 6 months for my company to collect money from the state. Maybe, this is not true for all businesses. I finished a job the week before Thanksgiving and was paid about 4 weeks ago. That was a waiting period of 7 months. The paperwork has to get signed by many departments before a check is cut.

I hardly doubt the state will front money. The only nice part about working for the state is we charge more than two to three times more than we get from other customers. So, when you work for the government make sure you are getting enough money to make the wait worthwhile.
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Old 06-18-2015, 07:48 AM   #7
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Re: State And Local (Government) Contract Down Payment?


depends on what the contract/bid documents says.

Everyone is different. Here you can get a payment once materials are delivered to the site. Then depending on the project monthly or weekly progress payments, up -10%. Once the project inspected ect the 10% is paid.

Depending on what branch of our local government and where the money is coming from all of this is null and void since it takes 60-90 days or longer to get paid anyway.

We almost always float the whole project, a few times we will do one at 50% and material costs.
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Old 06-20-2015, 05:41 PM   #8
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Re: State And Local (Government) Contract Down Payment?


You will never get a down payment. You will have to float that money for at least sixty days. I have done hundreds of homes (hundreds) and never received any front money. Work with your suppliers, get that material on it's own account. Many things you can do.

Last edited by trussme; 06-20-2015 at 05:43 PM.
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Old 06-20-2015, 06:50 PM   #9
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Re: State And Local (Government) Contract Down Payment?


Quote:
Originally Posted by MGRG View Post
Does anyone have any experience with State and local contracts? I need to know if they allow for a start-up down payment? Any help will be greatly appreciated.
Is this for projects that are put out for bid? When working as a sub under a GC we have received it within 45 - 60 days. There are a couple of times it went over sixty but that doesn't happen too often.

We always receive money within thirty days for state and city jobs that we obtain ourselves. We usually invoice 2/10 net 30 and have received it within ten days a number of times -- but it is normally closer to the 30 day limit.

If it is near the end of their fiscal year contract negotiators a couple of times have insisted on using a credit card and paying up front. We just use Square in those cases. We don't have a merchant account.

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