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New here and thanks for the help. Is there a standard for payment scheduals in room addition type work? I would appreciate any input you may have.
Thanks,
Randy
Thanks,
Randy
Great Advice! If a customer does'nt like a pay schedule that coincides with progress of work then that should set off a red flag! I've seen too many people get burnt on the 1/3, 1/3 and 1/3 schedule, which I think was developed by lawyers (go figure). You have 100% of the work done and only 66% of you're money. And forget about small claims court that is the biggest JOKE!!magnum said:Keep in mind that your payment schedule should be 1 step ahead of your progress schedule.
That's hard to do when your job is only a few day project. Typically I get a downpayment of no less than 33%, often times more depending on circumstances.magnum said:Keep in mind that your payment schedule should be 1 step ahead of your progress schedule.
Ok so if you are getting prepaid on everything that means the customer is writing the final check before you finish the project?plumguy said:Great Advice! If a customer does'nt like a pay schedule that coincides with progress of work then that should set off a red flag! I've seen too many people get burnt on the 1/3, 1/3 and 1/3 schedule. You have 100% of the work done and only 66% of you're money. !
No, in my line of work let's say I plum a new house. When I'm done with the rough 85% of my work is done. So, 66% is unacceptable. Sometimes it can be months before the finish is ready.And that can add up to thousands of dollars that I've already earned.Grumpy said:Ok so if you are getting prepaid on everything that means the customer is writing the final check before you finish the project?
Personally as stated above I get the material deposit after that if the job will last more than 5 business days I require weekly payouts (paid on friday regardless of the start date) but usually I just require balance upon completion. In my line of work doing it any other way just is too much paper work for myself and the customer.