Payment question

1838 Views 15 Replies 9 Participants Last post by craftsmen, Sep 10, 2013

craftsmen

Discussion Starter · Sep 10, 2013

I'm just wondering what sorta terms everyone is putting in their contracts for the last payment. In other words once you submit the invoice to a commercial client for services rendered, what's the longest amount of time given to the client to be paid? (Immediately, one week, two weeks)

Thank you!!

1 - 16 of 16 Posts

brunothedog

· #2 · Sep 10, 2013

depends from job to job, materials involved, etc.
Me personally ask for 30% up front, 50% finished job, the remaining after 60-90 daze.
government jobs pay 120 daze after billed.
small jobs with only labor involved, job finished.
some contractors pay every 2 weeks.
others pay when they sell

a 200k job i was asked to work for, 30% billed, the remaining when they sold

their is no rule.

jlsconstruction

· #3 · Sep 10, 2013 (Edited)

My contract say " opon immediate completion", but on smaller jobs if the ho isn't home we just leave. I leave them with a final invoice and a self addressed envelope with a stamp on it. All they have to do is write a check and throw it in the mail box.

brunothedog

· #4 · Sep 10, 2013

jlsconstruction said:
I leave them with a final invoice and a self addressed envelope with a stamp on it. All they have to do is write a check and throw it in the mail box.

And they sent the check in the mail?
Darn, I have tried to do direct deposit and few directly deposited.
many HO and Contractors make my life a living hell when it comes to paying

480sparky

· #5 · Sep 10, 2013

".... balance due upon completion". Typically, when it passes final inspection.

blacktop

· #6 · Sep 10, 2013

Another member here posted this.. I hope he don't mind that I put it at the bottom of my invoices from here on out! :laughing:

''article 16 line 4 section B clearly states " if for any reason customer decides to not pay contractor in full upon completion, contractor reserves the right to poke said customer repeatedly in the eye using contractors right index finger until final payment arrangements can be reached"
__________________

I LOVE IT!!!!!!!!!!!!!!!!!!!!!!!:clap:

Reactions: 2

craftsmen

Discussion Starter · #7 · Sep 10, 2013

We're doing work for this commercial real estate company that owns over 100 retail stores. Some jobs are big and some are small. They want to pay us 30 days after receiving the invoice and I feel like that's a bit unfair of them to hold on to my money for that long, but it has something to do with their billing department. They pay their mortgages and utilities first, then all invoices. As someone here in another thread mentioned, I'm not a lending institution and if they're treating me like one, maybe I should charge them interest as the bank charges on their outstanding loans.

craftsmen

Discussion Starter · #8 · Sep 10, 2013

blacktop said:
Another member here posted this.. I hope he don't mind that I put it at the bottom of my invoices from here on out! :laughing:

''article 16 line 4 section B clearly states " if for any reason customer decides to not pay contractor in full upon completion, contractor reserves the right to poke said customer repeatedly in the eye using contractors right index finger until final payment arrangements can be reached"
__________________

I LOVE IT!!!!!!!!!!!!!!!!!!!!!!!:clap:

:laughing: That's a great idea!! :laughing::thumbsup:

We Fix Houses

· #9 · Sep 10, 2013 (Edited)

As I've explained about 4x you have to view this from their AP set up perspective. That is bills are paid from an aging report. Your terms are entered by an AR/AP clerk for the co. paying you. Ideally due upon completion is best (you'll be on the next check writing report) unless const. docs say how you will be handled in days otherwise.

Further, a person then selects what bills really get paid that week - prioritizes.

"You were on the pre - check last week...I don't know why you didn't get paid ?"

480sparky

· #10 · Sep 10, 2013

craftsmen said:
.....They want to pay us 30 days after receiving the invoice and .......

............ you should adjust your prices accordingly.

craftsmen

Discussion Starter · #11 · Sep 10, 2013

We Fix Houses said:
(you'll be on the next check writing report)

"You were on the pre - check last week...I don't know why you didn't get paid ?"

Yeah, It seems this company isn't on weekly check writing cycle, more like monthly or at least that's how they made it sound. This isn't a small company so it makes it hard to believe that they only write checks once a month.

TNTRenovate

· #12 · Sep 10, 2013

craftsmen said:
We're doing work for this commercial real estate company that owns over 100 retail stores. Some jobs are big and some are small. They want to pay us 30 days after receiving the invoice and I feel like that's a bit unfair of them to hold on to my money for that long, but it has something to do with their billing department. They pay their mortgages and utilities first, then all invoices. As someone here in another thread mentioned, I'm not a lending institution and if they're treating me like one, maybe I should charge them interest as the bank charges on their outstanding loans.

That's standard practice around here for RETAIL clients. I have done some work for several different retailers as well as service companies of malls. Always 30 days after invoice is submitted. I start sending the invoice certified mail. I also have in my contract that I charge fees and interest for everyday after 30 days. Never had a late payment! :thumbsup:

Metro M & L

· #13 · Sep 10, 2013

30 days is fast. You should coubt tour blessings to have a client that has repeat business.

Reactions: 1

480sparky

· #14 · Sep 10, 2013

Metro M & L said:
30 days is fast. You should coubt tour blessings to have a client that has repeat business.

I do service call work for a local school. It takes 3 monthly board meetings for a check to get cut.

1st meeting: My invoice is 'published'.... meaning it's included in the list of the district's ARs and a paper copy provided to every board member. Copies are also available at the schools admin office for public access. (Board meetings are on Tuesdays, and my invoice MUST be submitted by EOBD the previous Friday!)

2nd meeting: It's 'read'.... meaning the board is asked if anyone has any thing to discuss concerning last months' published expenses.

3rd meeting: It's voted on. Barring objection, the bill is approved.

Then in the next week or so I get a check.

So this account is usually 100-120 days out from time of service rendered to receipt of payment.

As long as you know the payor's method, you should be able to account for the time-value of your money in their bill.

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Reactions: 3

TxElectrician

· #15 · Sep 10, 2013

I've had commercial accounts that would pay in 10 days if I offered a discount of at least 2%.

Our labor rate was 5% higher for those customers.

Reactions: 3

craftsmen

Discussion Starter · #16 · Sep 10, 2013

480sparky said:
I do service call work for a local school. It takes 3 monthly board meetings for a check to get cut.

1st meeting: My invoice is 'published'.... meaning it's included in the list of the district's ARs and a paper copy provided to every board member. Copies are also available at the schools admin office for public access. (Board meetings are on Tuesdays, and my invoice MUST be submitted by EOBD the previous Friday!)

2nd meeting: It's 'read'.... meaning the board is asked if anyone has any thing to discuss concerning last months' published expenses.

3rd meeting: It's voted on. Barring objection, the bill is approved.

Then in the next week or so I get a check.

So this account is usually 100-120 days out from time of service rendered to receipt of payment.

As long as you know the payor's method, you should be able to account for the time-value of your money in their bill.

A friend's company does work for municipal and state government. 120 days is expected for those type of jobs. And You're right, I guess accounting for time value of my money is the way to go.

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