Hi everyone.
I'm kind of new here, please be gentle with me.
I was wondering how most of you make pay schedule for TI or house remodeling project.
Do you normally ask for payment before each work schedule starts or
after each work is done?
Thanks in advance.
As far as I am concerned the customer pays for everything. Why should you bank roll anybodies project?
Do you normally ask for payment before each work schedule starts or
after each work is done?
Both :blink:
In my line [electrician] I have determined that the rough portion of my work comes to typically 66.82% of the job total, with the finish at 33.18%.
What I will typically ask for [and receive] are these terms:
50% Deposit at signing/start of job
25% Progress Payment prior to my calling for rough inspection
10% Progress Payment Prior to Trim Out
10% Progress Payment prior to my calling for a final inspection
5% Final payment due after passing final inspection
[NJ law dictates final payment after final inspection - but not the $ or % value]
Although I agree that progress payments be made, I would not agree to all of this "paper work". 5 separate checks???
I think 3 would suffice, especially if all your materials and some labor are covered (as you state) after the 2nd installment.
Assuming these are not enormous projects how about 50%, 40%, 10%??
Years ago, one of the remodeling gurus (and I'm sorry that I can't remember which one) said to key draws to the start of work instead of the completion. So instead of a draw being due after drywall was hung, it could be due at the start of taping. There can be some differences of opinion as to when a phase is complete but not when it is started. We have found this to be very effective.
Regards,
Annette
Both :blink:
In my line [electrician] I have determined that the rough portion of my work comes to typically 66.82% of the job total, with the finish at 33.18%.
What I will typically ask for [and receive] are these terms:
50% Deposit at signing/start of job
25% Progress Payment prior to my calling for rough inspection
10% Progress Payment Prior to Trim Out
10% Progress Payment prior to my calling for a final inspection
5% Final payment due after passing final inspection
[NJ law dictates final payment after final inspection - but not the $ or % value]
Of course, these percentage values can change based on the exact $ize of the job, level of detail and PITA factor.
In any case, I do not finance the job.
I agree with the CYA aspect. However:
You're requesting 10% prior to trim and 10% prior to calling in final inspection?
Isn't it very likely that these payments occur the same day?
Hey Celtic,
Almost 100%, however, there are contractors in your area that will have an oppurtunity to present a more ideal way for the home owner to feel comfortable with the payment terms.
When I owned my HVAC Business, we ran across many competitors who did a similiar payment policy. We tried to use it to our advantage.
I am fairly certain your familiar with your cut throat market area, however, every advantage is a bonus.
It isnt hard to do and can be another selling tool when trying to acquire work from a G.C., building owner or homeowner.
Shoot me and email and Ill forward the info.