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I have been in business for 6 almost 7 years, in Atlanta and Knoxville. In the past I worked with the same guys for YEARS and anyone else we did work for were referrals so I have NEVER had to deal with the "Trust" issue in this industry. So with that being said I had a cleint tell me they do NOT want to pay for cabinets until they are delivered and unfortunately we REQUIRE 50% deposit on ALL cabinetry. Now with companies going under day in and day out I UNDERSTAND the concern in the market but still got me thinking, "What can I do from a business stand point to settle the minds of my clients".
So what I am thinking is on all cabinet orders the client gets an order conformation, which is on the manufacture's letter head. On all jobs I do site delivery so this shows that the cabinets have been ordered, paid for and the address that they are to be shipped to with a delivery date, problem solved there.
Now when we are doing the entire project and have a draw schedule I want to change my contract terms so that after each draw the cleint will recieve a "form" from each vender or contractor that was involved in the completed work, that has been paid to date and have no outstanding invoices for each draw NOT just final payment. The form would have to be signed by the owner of the company and have contact info. Now this is a headache for me BUT a worth while effort in my opinion.
All of this comes from the last few clients I have meet with and asked what their concerns are and one is "Will you be here tomorrow" and this is a justifiable question in these times. It is NOT a fix but something to assure them we are not in this to take advantage of anyone at anytime for any reason.
 

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In the state of oregon you are required to carry a performance bond. If you don't perform and can't be found the bond pays. That's why the client can trust you and should always use a licensed contractor!
 

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As a GC, an option I have used in the past is a joint check payable to sub and supplier. This maybe eliminates the "how do I know you are going to pay for the cabinets" issue. I have also paid for cabinets on a COD basis.
 
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