Sounds like not charging enough is attracting the wrong type of clientele and change orders need to be paid when signed.
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I don't agree to charging up front for change orders, but you shouldn't start the work on them until they are signed for.
Every time you do a change order, it should reflect the total contract price including; the base price, any prior change orders agreed to, this latest change order all adding up to the current project total price. Then get it signed off on.
In 34 years I have never used a change order it was a recommendation to the OP.
Took it to mean he doesn't use a change order form. We don't either, it's in our contract to be able to use text and emails
I have never used one many of my jobs I'd be using one or more per day. I don't even give an estimate it just gets done and I have never not been paid.
I agree if I used them I wouldn't expect payment just signed before the work was performed.
That's more a turn of phrase than an actual ambition (well, at least for most folks). Obviously, the other side of that coin is that if you're the cheapest guy in town, you're either providing substandard service or leaving a lot of money on the table. If the latter, that's fine if you can afford to do that, but it's still going to leave you with less toys & fun at the end of the day/career.
Saw a great turn of phrase in a video earlier today: "Don't be that guy eating soup with a fork."
When it comes to change orders, it's all in the communication... when you sign the contract, you have a typical draw schedule based on your needs, and this usually covers the costs at each phase of the project... if you explain upfront that any Change Order that's needed once the project has started onsite will require 100% payment for the Change Order to fund the actual changes in the contract... otherwise, you are put in the position of funding it, and you're not a bank... it puts both the issue of what it costs and the payment to rest for both you and the customer, and there is no back loading of what is owed...
As to most expensive in town, there is ALWAYS someone more expensive or less expensive than you in your market... where you land in that spectrum as it relates to the next guy is really irrelevant... you need to charge what YOU need to charge to be in business, and that includes Profit for your company (profit is not your pay... your pay, which should include things like retirement, benefits, etc. should already be part of your Labor and/or Overhead category which make up your Hourly Rate), to fund things like 3-6 months of Capital Reserves, Emergency Fund, Equipment Fund, etc.
You need to start a Corp. or LLC, rent your shop to the business corporation, then you can up grade with untaxed $ Take some $ now going into Payroll taxes for you, and invest them in the business instead (12.2% of 107.92%? of your self employment Pay) i.e. divert as much of the business profits away from regular income, to growing untaxed by various payroll taxes, business equity......Make sure you have a private garage for your private vehicles...
You need to charge enough to REPLACE your truck and trailer every 5-7 years even IF you choose not too.......Never let customers know your position regarding owning, renting or mortgaged equipment, They don't need to know, and why should someone that has saved and invested large fractions of their labor's income into equity work for less then some one paying most of the Profits into interest payments????
You can be the cheaper guy, just be 1 % cheaper than 20% cheaper...... If you get EVERY job you bid, you are way too cheap. IMHO
You are eating your seed corn when you don't charge enough to cover depreciation of your physical plant and that you have a very limited number of decades to reach your financial goals, remember every 3 rd year is going to be a recession or WORSE.... you need some back fat ($$$) to make through very slow periods of the industry, with out having to close or declare bankruptcy.
Your investment/business, needs to yield profits NORTH what you get buying stocks or any other lower risk investments.....
Make sure the client credit line isn't maxed out.....
Send a bill every week, payable monthly, with the new change orders, have a 3-5day discount for paying Cash, good check, debit, add for credit cards..... You need a fee/ mark up/ minimum ,for change orders to cover the time spent billing them out and changing as builts, and for delays caused by slow decision loops by customer, designer, permitting agencies etc...... don't forget charging for delays and demob and remob caused by changes and customer waffling.
Discuss what happens when they don't pay, or pay late, charge max interest allowed,monthly statement fee(s) contract stating legal fees are added to bills, 90 days, you have a lien.... etc....
You need to charge enough to REPLACE your truck and trailer every 5-7 years even IF you choose not too.......Never let customers know your position regarding owning, renting or mortgaged equipment, They don't need to know, and why should someone that has saved and invested large fractions of their labor's income into equity work for less then some one paying most of the Profits into interest payments????
You can be the cheaper guy, just be 1 % cheaper than 20% cheaper...... If you get EVERY job you bid, you are way too cheap. IMHO
You are eating your seed corn when you don't charge enough to cover depreciation of your physical plant and that you have a very limited number of decades to reach your financial goals, remember every 3 rd year is going to be a recession or WORSE.... you need some back fat ($$$) to make through very slow periods of the industry, with out having to close or declare bankruptcy.
Your investment/business, needs to yield profits NORTH what you get buying stocks or any other lower risk investments.....
Make sure the client credit line isn't maxed out.....
Send a bill every week, payable monthly, with the new change orders, have a 3-5day discount for paying Cash, good check, debit, add for credit cards..... You need a fee/ mark up/ minimum ,for change orders to cover the time spent billing them out and changing as builts, and for delays caused by slow decision loops by customer, designer, permitting agencies etc...... don't forget charging for delays and demob and remob caused by changes and customer waffling.
Discuss what happens when they don't pay, or pay late, charge max interest allowed,monthly statement fee(s) contract stating legal fees are added to bills, 90 days, you have a lien.... etc....
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