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I am in the midst of getting new contracts written up. right now i currently have:
"final payment is due upon completion". however,home owners just don't even mention the final payment when i'm finished i have to remind them and it pisses me the frig off. should i change it to "Final payment is due upon DAY OF COMPLETION"...? this way they know its due on that day and not open neded so to speak?
also,i want to put in a clause that says something like:
" any request for additional labor or materials not included in original contract will require a separate contract provided original balance is paid in full".
finally,how do i properly word the "3 day to cancel clause"?
thank you
 

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allllriiighht. if you're every afraid of not being paid. all you have to do is talk a little crazy when you work. talk about how money is tight and you will do anything to make sure the bills are paid.... anything.... even murder.
 

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I am in the midst of getting new contracts written up. right now i currently have:
"final payment is due upon completion". however,home owners just don't even mention the final payment when i'm finished i have to remind them and it pisses me the frig off.
Do you submit an invoice for payment or just expect them to break out their check book, credit card, or cash when they think the project is complete? If you don't ask them for the payment how are they going to know it is due? I think you are taking it a little out of perspective. You know your electric bill is due every month but probably still wait for the bill to verify the amount and to have a receipt for your records. Same concept when dealing with most customers.
 

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allllriiighht. if you're every afraid of not being paid. all you have to do is talk a little crazy when you work. talk about how money is tight and you will do anything to make sure the bills are paid.... anything.... even murder.
You're going to have to save these in either digital or print format and see what you think 3, 5, 10, 20 years from now...seriously. :thumbsup:
 

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DavidC
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The references provided are a good place to look for ideas so you know what to ask when you speak to your attorney. This is potentially the most important document you will use and my little pea brain allows for no other option than to have it written by whomever you will ask to defend it in a time of need.

With that disclaimer in mind;

"When the work is substantially completed, as defined below: a.) the Contractor is entitled to payment under this Contract; and b.) the Homeowner may withhold no more than five percent (5%) or the total amount billed pending resolution of any disputes or Contractor's alleged non-compliance with this Contract. Substantial completion of the work is defined as follows:___________________________________________________________________________________"

It's up to you to clearly define this point in advance. I mostly use "When the Contractor offers work as complete and in usable condition pending customer inspection and acceptance."

There are actually 3 different clauses in our contract that mention payment in addition to the payment schedule page.

Not just the proper wording but of equal importance is reviewing the contract thoroughly with the client before signing. I will read it word for word to the client and pause for questions throughout as needed.

After reading the above clause I might explain that this clause recognizes that we finance the project with their money and at this point we have bills to pay and payroll to cover on their behalf, to make certain no one entertains the idea of applying a lien on their house. If you have a punch list or any other concerns that you feel you need some leverage to get us to comply, you may withhold up to 5% or any lesser amount you feel is adequate at the time.

Your additional work question should also be handled in the contract. Ours has a Change of Work clause and an Additional Work clause. Not all additional work fits neatly into a package that can be dealt with after the original contract. In fact, most will likely need to be done to allow progress.

The wording for your 3 day will be governed by State or local laws depending on where you are.

Take your best ideas and sit with your attorney and get it done right. $300-3000 is cheap insurance compared to what you have to lose.

Good Luck
Dave
 

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You're going to have to save these in either digital or print format and see what you think 3, 5, 10, 20 years from now...seriously. :thumbsup:
i sincerely hope that you did not take my post seriously. i'd never kill unless they were posing a life threat to me, my family, or a friend.

getting physical is another story though!!
 

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Here is how we define project 'complete'.

Project is considered complete and final payment is due when contractor completes all work with materials supplied by contractor or contractor’s sub-contractors, and those customer supplied materials that were available prior to start of project. Materials supplied by customer that are not available when requested by contractor for installation do not effect the projects final payment due date and additional fees @ $60.00 per man/hr with a 1 hr minimum and a $60 trip charge may be applied for each additional visit required after project is considered complete to return to install late customer supplied materials.
 

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Always, always invoice - & don't be afraid to ask for payment. Our contract states 'final payment due upon completion of work as stated in contract'. As far as additional work, contract specifies any changes/additions to original contract requires a change order which must be signed by h/o. We also require 1/2 (of the cost of change) at signing of change order, balance due upon completion of change - not job. In the past we've had jobs where so many additions were made they really add up then h/o is not too happy about paying all that extra $$$ at end of job. For us this works w/no problems. If they don't sign the change order no additional work will be done. Another suggestion we've also experienced problems w/subcontractors being contacted directly by h/o asking for additional work and/or upgrades. We notify subs if there are changes/additions they MUST NOTIFY THE OFFICE so a change order can be written up & signed. If subs proceed w/o following this -- they are responsible for additional fees, we won't cover them.
 
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