# How much down-money before starting a job?



## steve-in-kville (Aug 30, 2006)

Do you collect a down-payment from a customer before starting a job? If so, how much?

If not, why not?

steve


----------



## Exroadog (Feb 11, 2005)

We take a third down (our state law max.) third at halfway, final at completion.


----------



## KellyPainting (May 30, 2006)

depends on how much the job is.... under $1000... half 2 start half at end
under $500 all at end of job......... over $2000 then 1/3 ..1/3 ..1/3
or if real big ...like $1500.... sometimes structured or weakly payments.

My state law says only 1/3 to start.


----------



## BMAN (Aug 21, 2006)

*yes*

1/3 to begin and all at the end for painting, other home improvements more.


----------



## Mike Finley (Apr 28, 2004)

10% on signing of the contract, 10% on final day of the project, the rest divided up during the progress of the job. Win/Win for everybody.


----------



## Flawless Finish (Aug 7, 2006)

20% to start and the rest at the end. I deal with really nice people that always pay before I have to ask though.


----------



## Humble Abode (Mar 19, 2005)

I do:

10% contract signing
40% to start the job
50% final


----------



## Dave Mac (Jan 30, 2006)

not a penny, untill we are done, and they are happy., unless job is over 6,000


----------



## Joasis (Mar 28, 2006)

This is a painters only topic, but as a GC, I do it a little differently. About half of our business is commercial steel building erection, and the building materials are paid before the job hits the schedule, keeps everyone on the same page. When the concrete work is done, I do 1/3 of the total labor + concrete. When the frame is up, 1/3, and when complete, final 1/3. With new homes, I do it the same way, the customer pays 100% of the framing package, and then follows the schedule above.


----------



## dougchips (Apr 23, 2006)

1/3 down 2/3 at finish state law


----------



## lornmastro (Mar 17, 2006)

i would love to see more of these polls


----------



## Richard (May 21, 2006)

KellyPainting said:


> depends on how much the job is.... under $1000... half 2 start half at end
> under $500 all at end of job......... over $2000 then 1/3 ..1/3 ..1/3
> or if real big ...like $1500.... sometimes structured or weakly payments.
> 
> My state law says only 1/3 to start.



Ditto....to the "T"......gotta get $ for materials and get paid by the week no matter what


----------



## AFI (Sep 21, 2006)

Depend of the job
Less than $1000.00 50/50
More than $1000.00 50(on signing)/30 (before paint application)/20 (final)
More than $20,000.00 33/33/33
Complicated costumers 50(on signing)/40 (before paint application)/10 (final)


----------



## Jonesey (Jul 7, 2006)

20% to start on most jobs. Less if I know them well.


----------



## Brushslingers (Jul 28, 2006)

15% to start, if it's gonna be more than a week I set up a draw system. Covers paint.. at least... if they skip.


----------



## ProWallGuy (Oct 17, 2003)

1/3 at signing, 1/3 at halfway point, 1/3 at end.
If job lasts longer than 2 weeks, draws are figured in.
I like Finleys schedule, but most of our jobs don't last long enough to really warrant that. On my big out-of-state commercial jobs, it's 1/3 at signing, 1/3 on day one of job, balance due within 30 days of completion.



Flawless Finish said:


> 20% to start and the rest at the end. I deal with really nice people that always pay before I have to ask though.


That won't last forever. Be prepared for that day.


----------



## Flawless Finish (Aug 7, 2006)

ProWallGuy said:


> That won't last forever. Be prepared for that day.


I know. I've just been really lucky up until this point.


----------



## smokeator (Apr 20, 2006)

We only require the cost of materials at contract signing. That way we are never out paint or supplies. Labor is paid when the customer is happy.


----------



## Joewho (Sep 20, 2006)

Depends on the job and financial state at the time. I would like to do all jobs with no money down, but usually wind up doing it the way kellypaint does it.

I never write "downpayment", it's either a deposit or an advance. Deposit is not refundable, in case the customer decides to cancel for no good reason. Advance is refundable.

In 20 yrs. I kept one deposit, only 50 bucks. The customer wanted his friend to do the job I had already started.

In 20 yrs. I got paid for work I didn't do once. Was a Government agency. I anticitpated that I would be locked out of the building, so I put a clause in the contract that I would be paid in full if I was prevented from completeing the work. I was about halfway done with the building and on 3 consecutve days, I was locked out. Same thing happened the next week, so I invoked the clause.

All in all though, I strongly agree with doing all the work before getting any money. However, years of painting, with previous sales experience, and some psychology background, leaves me with a pretty good feel for people. I'd like to always do the right thing, but you will get burned.

Did a 1.5 million dollar house, custom interior and to make a long story short, I had to threaten a lein to get paid. It's always the rich one's who want to skip out on the final payment. This lady let her son-in-law do the wood trim out, what a mess. 

rule of thumb: Painters caulk wood-to-drywall. Carpenters caulk wood-to-wood.


----------



## steve-in-kville (Aug 30, 2006)

smokeator said:


> We only require the cost of materials at contract signing. That way we are never out paint or supplies. Labor is paid when the customer is happy.


The guy that does my windows and siding is that way. He figures if he's out a few days work, no biggie.

If he's out $1000's in windows... that's a bite in the shorts!!

steve


----------

