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You just got your client to agree to your bid. I have 3 questions.

1. What payment schedule is written into your contract?
2. Does that schedule change at all with the size of the project?
3. And finally, does that schedule change between bid work and T&M?

For background, we are a property management company doing maintenance (T&M) as well as turnover, remodels, and rehabs (bid).

Thanks.
 

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Accidental Painter
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ok...

How do you interpret this:

For questions regarding any invoices past our net 45 day processing window....

I have a client with 11 invoices totalling $6k. They are an acquisition company, and thusly cannot and will not sign a contract. They are 30 days out on payment....

Oh yeah, and they have been a PITA about "verbiage" on my insurance forms.

My invoices clearly state "Due on completion of work". Usually I am lenient for about a week.

The word "window" to me means before 45 days. It's a verbiage thing, and monday I begin charging $10/day late fee per invoice over 30 days.

Am I right? BTW I am awaiting word from my lawyer.
 

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Depends on the job:

If it's a residential automation project I take 25% down, 50% on equipment day and 25% at the end.

If it's a commercial CCDC contract they are invoiced as completed contract method in monthly draws invoiced at net 45.

If it's a small job for a repeat customer under 10K I collect a cheque upon completion.

If it's a small job for a new cutsomer I take 30% down and collect a cheque upon completion.

If it's a job I feel a little uncomfortable about I take a BIG downpayment. :laughing:
 

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Contractor of the Month
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ok...

How do you interpret this:

For questions regarding any invoices past our net 45 day processing window....

I have a client with 11 invoices totalling $6k. They are an acquisition company, and thusly cannot and will not sign a contract. They are 30 days out on payment....

Oh yeah, and they have been a PITA about "verbiage" on my insurance forms.

My invoices clearly state "Due on completion of work". Usually I am lenient for about a week.

The word "window" to me means before 45 days. It's a verbiage thing, and monday I begin charging $10/day late fee per invoice over 30 days.

Am I right? BTW I am awaiting word from my lawyer.
I'm confused, you invoice them as due on completion and you haven't received payment in 30 days so you charge 10$ a day?
 

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Accidental Painter
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Yes, I charge late fees after 30 days on all outstanding invoices. Always have. I give clients plenty of time to pay. After all, I have 60 days after completion of work to sue, lien. If not paid, I send out progreesively more aggresive emails weekly leading up to lawsuit day.

Prior to work, I always get in writing payment terms. However, this client wanted no part of signing anything. Just invoice them.

Now theyre crying net 45. Sorry, doesn't work that way.

Work began September 1, 2013. Friday I notified them that October 15 is their 45 day. October 16 I will be going downtown to begin the legal process of getting paid.

The guys have been hiding behind a company called Compliance Depot to dodge payment. Long story, new thread...

I have found that in my area payment terms are :

residential: immediately
commercial: net 30 days
Bank work: up to 90 day

But in all honesty, it boils down to size of work, length of job. Most of my work is finished same day/week.
 

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I typically do mine in thirds.
very rarely do I do T&M, but when I do I bill out thurs night with invoice due the next day.
Some jobs like drywall I charge in phases. (downpayement, hang, finish, paint, etc) They get a bill after every phase is completed and inspected.
That all being said I am very flexable and work with client needs. Long as I get paid at somepoint i really dont care, all goes to the wife anyway! LOL
 

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With homeowners--on a remodeling job--

I use dollar amounts,seldom percentages--

Payouts are based on progress,

For example, $X000 deposit is required 5 days before the job begins--
$X000 after demolition and mechanical is complete
$X 000 when drywall is hung ---
and on it goes----number of payouts depends on---size of job---customers credit (based on my gut feeling)
 

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With homeowners--on a remodeling job--

I use dollar amounts,seldom percentages--

Payouts are based on progress,

For example, $X000 deposit is required 5 days before the job begins--
$X000 after demolition and mechanical is complete
$X 000 when drywall is hung ---
and on it goes----number of payouts depends on---size of job---customers credit (based on my gut feeling)
I do the same. Works well and keeps things even for all.
 

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I do the same. Works well and keeps things even for all.
I find customers are very comfortable with this---the customer and I are always close on the money----neither one is at huge risk---

Be sure to bill change orders as soon as possible--you don't want to hand them a stack of bills at the end of the job---that is a good way to end up getting stiffed.
 

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ArtisanRemod said:
I do the same. Works well and keeps things even for all.
Project doesn't get on the schedule until we receive a signed copy of the proposal and deposit check.

The day the permit is onsite another payment is due. Then a draw after each inspection passes.

The final payment, due after the final inspection passes,is usually under $1k.

Change order payment are due when the CO is signed and before the work is started.

Never had a problem getting payments.
 

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Every now and then poster
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I generally break mine down into 6-8 payments based on completion markers. The amount of the payment is generated by having the client pre pay for the next phase of construction. The first payment is enough to cover ALL expenses to get to the next phase, and so on.

Like yankee the last payment is usually the smallest being that by that point all the work has been completed and typically covers my costs to close the job out in our books...
 

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I do mostly time and material remodel jobs, on a handshake. {i live in a small community}. I bill every two weeks on Monday morning and get a check midweek. I've been doing it this way for 20 years and have never had a problem. This way the client can remember what I've done in the last two weeks, reminded by my itemized bill. If there is a problem they can fire me or I'm only out two weeks labor. Never has happened though.
 

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Line itemized estimate and contract. Usually no down payment cuase line item 1 is demo and at the end of the week all items completed are billed and invoice handed to the owner. Keep working, keep billing. That's how you make $. Never really understood the deposit and percentage process. Itemizing takes the mystery out of it and the owner can see exactly what they are paying for.
 

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We are a subcontractor, Peter, so this may not apply but we do 30% frame start, 30% sheetrock start, 30% exterior completion, 10% final completion.
 

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I personally don't like to carry material cost so it's material cost due at delivery and balance upon completion....I saw a contract from a plumbing company where they retained ownerships of all materials (fittings pipe everything) so basically if u didn't pay they had a right to re-po the materials
 

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I personally don't like to carry material cost so it's material cost due at delivery and balance upon completion....I saw a contract from a plumbing company where they retained ownerships of all materials (fittings pipe everything) so basically if u didn't pay they had a right to re-po the materials
Oh, if repossessing installed materials was only legal----sadly,in my country,once an item is installed it is part of the property and can not be removed for non payment--only the property can be liened--
 
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