[6stringmason]

I was wondering what would be a substantial amount of time to let a GC pay off your bill. I usually allow 2 wks. Is that ample or should I allow more?

 

[MinConst]

30 days would be sufficient time. As far as I know it is a standard time. But this is something that should be discussed and agreed upon beforehend.

 

[bergenbldr]

2weeks is good, 4weeks average, more than 6weeks g.c. is out of money. Worked for a contractor who was busy all the time,problem was he was selling the jobs at or below cost ,was 9 months behind paying subs.Never let money owed to you get to point that you can't walk.

 

[Grumpy]

The next day I show up with my hand out. When a GC asks me to bid I interview them. I prefer to work for home owners so I get to pick and choose my GC customers. usually I work for GC's just starting out and haven't realized they can make more money by beating up their subs. Anyways I tell them during my interview that I expect money BEFORE work begins and I expect money no later than a few days after it is complete. If the project will last more than 5 working days, or will be done in phases, I require a progress payment as well.

 

[Grumpy]

True story. A new GC just hried me to do his roof, siding and gutters on a home. I called his partner and asked when I was going to get paid about 3 days after we finished. He said that I had to get the money from the title company, but I've got the color for your siding. Next day his partner called me to ask when we were starting the siding to which I responded "when can I expect my check?" I got paid the next day... still haven't started the siding.

 

[bergenbldr]

True story. A new GC just hried me to do his roof, siding and gutters on a home. I called his partner and asked when I was going to get paid about 3 days after we finished. He said that I had to get the money from the title company, but I've got the color for your siding. Next day his partner called me to ask when we were starting the siding to which I responded "when can I expect my check?" I got paid the next day... still haven't started the siding.

Also if you supply materials,get money up front.Your not likely to to be paid before g.c. gets progress payment for phase of work related to your work.If job is bank financed, bank may also have to inspect work before releasing funds to g.c..

 

[6stringmason]

Great. Thanks alot for the help guys. This year I just started requiring %50 down for jobs $2000 to $5000. And $10,000 and up 1/3 down, 1/3 halfway, and 1/3 at end. Just wanted to make sure I was on the right path. Appreciate the help once again.

 

[bergenbldr]

Best way to deal with gc's might be to offer net10 days at 2%discount and 2% late fee after 30 days just like most suppliers.

 

[Mike Finley]

Best way to deal with gc's might be to offer net10 days at 2%discount and 2% late fee after 30 days just like most suppliers.

Are you allowed to mark-up your bill by 2% before giving it to them?

If not I would not bend over and give up 2% of pure profit to anybody, especially just for the novelty of them doing what they are supposed to be doing, which is pay there God damn bill.

Grab a calculator and figure out what 2% gross off the bill equates to percentage wise in profit - 10%? That's ridiculous! :evil:

 

[bergenbldr]

Are you allowed to mark-up your bill by 2% before giving it to them?

If not I would not bend over and give up 2% of pure profit to anybody, especially just for the novelty of them doing what they are supposed to be doing, which is pay there God damn bill.

Grab a calculator and figure out what 2% gross off the bill equates to percentage wise in profit - 10%? That's ridiculous! :evil:

So mark up it up 2% beforehand. When i buy on trade credit the cost of that credit is worked into what ever i buy ,if i pay early and take the discount i'm realy paying the market price in the end. Same principle at work here.

 

[Mike Finley]

I'm just too greedy, if there is the potential for marking up 2% more, I have already done it, I don't like leaving money on the table and I especially don't like some loser getting in my pocket just for the sake of him paying his bill on time. That's just me. In other businesses I ran when dealing business to business after 30 days they got a statement and a phone call, after 90 they went to collections or small claims court. If you make it abundently clear with your clients exactly the responsibilities each of you have before the work begins and each of you acknowledge it : Me - provide you with awesome service unparalled - You - pay me what we agree to and on time. Then I have never had a problem calling a dirt bag slow payer exactly what he is - a dirt bag slow payer, and by the way, I want my money today!

I had a homeowner just recently wanting me to hold off depositing his check for a week, that doesn't go over too well just for the sake of his convience of not having to move money around. The check is due upon customers final walk through and presentation of the invoice.

But that is residential dealing with the homeowner, not working as a sub. Obviously you can tell I wouldn't work as a sub.

 

[bergenbldr]

I'm just too greedy, if there is the potential for marking up 2% more, I have already done it, I don't like leaving money on the table and I especially don't like some loser getting in my pocket just for the sake of him paying his bill on time. That's just me. In other businesses I ran when dealing business to business after 30 days they got a statement and a phone call, after 90 they went to collections or small claims court. If you make it abundently clear with your clients exactly the responsibilities each of you have before the work begins and each of you acknowledge it : Me - provide you with awesome service unparalled - You - pay me what we agree to and on time. Then I have never had a problem calling a dirt bag slow payer exactly what he is - a dirt bag slow payer, and by the way, I want my money today!

I had a homeowner just recently wanting me to hold off depositing his check for a week, that doesn't go over too well just for the sake of his convience of not having to move money around. The check is due upon customers final walk through and presentation of the invoice.

But that is residential dealing with the homeowner, not working as a sub. Obviously you can tell I wouldn't work as a sub.

Mike, i would only consider this in a bussiness to bussiness transaction, never in a sale to a consumer. I'm certain homeowner buying from my supplier would never get a cash discount as a contractor buying on account would. There is a big difference between subcontracting and selling directly to the consumer.

 

[ConcreteGuy]

For residential, insist on payments for materials immediately.
Depending on your costs, demand prompt payment on the labor and your subs.

You DO NOT finance work. That is a banker's job.

You build things. Bankers loan money.

Lol, Grumpy may be too mean to ever croak, but if he ever does, they out to can him and sell it for millions.
I'd buy a case.

:cheesygri

 

[dacusvillegirl]

We do this as standard, if it is a new builder we have not used we get 70% of the total cost of the job on the Rough In and the final 30% on the the Trim/Set. No Trim/Set is done untill the Rough-In is pay. For long standing Builders we do 60/40 and for homeowners it is 100% apon completion for Changouts - this is HVAC.
Misty

 

[Mike Finley]

Mike, i would only consider this in a bussiness to bussiness transaction, never in a sale to a consumer. I'm certain homeowner buying from my supplier would never get a cash discount as a contractor buying on account would. There is a big difference between subcontracting and selling directly to the consumer.

Yes there is a difference in dealing with a GC and a consumer, but their is no difference in giving up 2% of the gross which could be as high as 10-15% of the actual profit.

Nobody HAS to give up 2% to get paid, some people might do it to get paid faster, and I'm sure as a GC I would bend over anybody stupid enough to offer it to me (Since I pay on time anyways the 2% would be free gravy and survival of the fittest or Darwinian selection at its finest in my opinion)

Like I said, if you like to do it or others do, so be it, but there is no freaken way I would do it or advice it or condone it to anybody to give up profit like that after busting your ass to fullfill your side of the contract only to beg the person to actually fullfill his side of the deal by paying you. Just glad I'm not doing that type of work, and hopefully never will.