# Pay Me!



## Framer53 (Feb 23, 2008)

it's easy. Just ask them the day before the job is done that the next day I will be completed what time can I pick up my check?

Then shut up and let them respond.

I have been burned twice in the past for substantial amounts of money, but not since I started doing it that way.

Shoot, I have had customers whip out the check books and pay me then.:thumbsup:

It seems that once you have started it relaxes the customer and they assume you won't burn them.


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## BamBamm5144 (Jul 12, 2008)

Email is the only way this guy likes to communicate. I email him saying "Let me know of a good time to drop off some extra shingles (he wanted extra) as well as for me to pick up the final check"

The guy replied that I can drop off the shingles anytime and he will pay me as soon as he gets paid :blink:


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## larryb (May 23, 2008)

BamBamm5144 said:


> In my contract, on all three of the pages they sign it does say payment in full due upon SUBSTANTIAL completion. They still don't seem to get it.


Substantial kinda leaves the idea of completion open to interpretation. I know what you mean but, to the customer, substantial might mean something else. I'd remove substantial from the agreement and simply say payment in full on completion (your interpretation, not their's).


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## john elliott (Oct 23, 2005)

larryb said:


> Substantial kinda leaves the idea of completion open to interpretation. I know what you mean but, to the customer, substantial might mean something else. I'd remove substantial from the agreement and simply say payment in full on completion (your interpretation, not their's).



I disagree with that totally. Substantial means that the job is basically finished, bar maybe some small, inconsequential item that you will already have agreed to deal with promptly.

I would keep the word in and explain to the customer what it means at the outset.


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## jimmys (May 1, 2009)

*define it*

Mine says: "Substantial Completion may be when all work is completed, when a Certificate of Occupancy has been issued, or when the work site may be safely occupied for its intended use." I think (and have found) that covers us for the different ways jobs [almost] end while still waiting for a light fixture or replacement switch plate.
You can ask nicely and firmly - you have fronted the money for the work and now the work is done.
Jim


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## Ed the Roofer (Dec 12, 2006)

Substantial Completion is a legally defined term, meaning that the end use of the product or service is capable of providing the usage of that product or service, although certain minor punch list items may still remain.

It is clearly advantageous to be paid upon "Substantial Completion", versus not having a termination point that can be indiscriminately deemed another point in time by the other party to the contract. 

This is how I have that spelled out in my General Conditions Page regarding Payment and Substantial Completion.



Article 8) Customer Satisfaction – Presentation of the final walk through inspection report for customer satisfaction or the final invoice is notice to the Owner/Customer that the Company considers the project complete. Upon notice, the Owner is responsible to immediately make the final inspection and approve or disapprove the work by filling out the inspection report; or notify the Company in writing of any work considered incomplete or unsatisfactory. If no notice is received within one week, the project is considered completed and accepted by the Owner.

Article 9) Payments – Payments shall be made as provided in the agreement. The making and acceptance of the final payment shall constitute waiver of all claims by the Owner. Payment is due upon substantial completion of the work. If certain items of specified contractual work are incomplete, the cost of these items up to 5% of the original base contract amount, or a mutually agreed upon sum, may be withheld from the substantial completion payment at the Owners option until such items are complete or until the final walk through inspection has been approved. The work will be deemed substantially complete when the Contractor has completed all work called for in the contract documents and the work is ready to be used and occupied by the Owner, even though minor items may remain to be installed, finished, or corrected, provided such minor items do not have an appreciable effect on the Owner to utilize the work for its intended purpose. 




Ed



.


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## Grumpy (Oct 8, 2003)

I have substantial completion as well in my terms of payment. The last time a customer held back money, he held back $1,000 on a $15,000.00 job for a half day of work, some caulk and mortar literally. No problem, I was happy to get the bulk of the funds, nearly $9,000.00. When I finished, I sent him an invoice and he sent me back a check a few days later. 

The customer was the one that offered the hold back of $1,000 I was only going to ask for half.


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## Rob PA (Aug 30, 2010)

What i do has worked for me, since I started this policy. After the contract has been made. I need a deposit paid, up front. That is to reserve the day and materials. The check is not cashed until the project is ready to begin. I check to make sure funds are there. 

If it is a less than a week project. After the deposit is made. All labor and materials need to be paid daily. This way it keeps tha balance low.

More than a week its every other day.

Now commercial accounts and PM companies all that is thrown out. No way will they commit to anything below than a month out.

I finished my last collect before this policy started this week. It took four months and the amount was fifty dollars light. BUT she wants more work done.


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## CarrPainting (Jun 29, 2010)

I had this problem when I started too.. I dunno I just kinda got over it.


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## Framer53 (Feb 23, 2008)

BamBamm5144 said:


> Email is the only way this guy likes to communicate. I email him saying "Let me know of a good time to drop off some extra shingles (he wanted extra) as well as for me to pick up the final check"
> 
> The guy replied that I can drop off the shingles anytime and he will pay me as soon as he gets paid :blink:


email him back and tell him to look for the intent to lien, as it is in the mail, then wait for his response.


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## Sir Mixalot (Jan 6, 2008)

BamBamm5144 said:


> Here is something I need to work on. Asking (demanding) payment when I am done. I must not do it right.
> 
> I get done today. Give the guy his paperwork and say here is the statement and ask him how he would like to pay? Tells me he isn't ready to do that right now and needs to wait for his wife for some reason although I only worked with him. His personality changed from being very friendly to being standoffish.
> 
> How do you guys do it without calling cousin vinny?


Bam, I've found that it is human nature for people to try and hold on to thier money as long as possible (if you let them).
What I do is 25% to start, 65% as job progresses (usually when 50% of the job is done. They don't want you to leave at this point.) 
Then 10% upon completion. Works everytime.:thumbup:

-Paul


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## POOLMANinCT (Oct 7, 2006)

i advocate the good old time tested C.O.D policy...


C-heck/cash/credit card O-r D-ie!!!!!!!!!!!!!


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## gizmo21187 (Apr 18, 2011)

I print two invoices one for the customer and one for me that they sing. It has total due, when its due.
So they can't say i did not tell them how much was due and when.


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## fshrmn (Nov 16, 2010)

I like emailing progress payment invoices with a read receipt. Then you know they have the invoice. I find that they just need a reminder and usually have a check ready when we get to the job the next day.


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## BRAVI (Jun 3, 2010)

Final payment has to be 5% or less. If you leave money on the table, they will take it.


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## tedanderson (May 19, 2010)

Maybe this makes me a little crooked and unscrupulous but any time I have a problem out of a client, I'll guilt them into paying. I've made up some of the worst hard luck stories imaginable only to follow up with a statement saying, "...but I can understand why you haven't paid me yet."

But funny enough, I did this to a non-paying client once and it resulted in the referring client calling me and saying, "I heard about your hard luck! Is there anything that I can do?"


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## gastek (Mar 29, 2011)

I would think like many here have said, get a certain percentage up front and then the something in the middle or the rest at the end. Explain to them that you didn't have an option to pay your supplier only after you were paid by the homeowner. I would also add a percentage fee on for late payments and make sure it is clear as a bell on the contract. Maybe highlight it and make sure to read it to them so they know up front.

I have yet to run into a non payer. In my line most of us do it with no contracts and expect to get paid when we mail the invoice. I guess if I didn't get paid I could always change the color of their pool water and then when they call me I can tell them I can fix it but they have to pay me my back payments.

Hey maybe you can send a few guys to his house and have them knock on his door and when he answers tell him they are here to start removing the shingles. When he asks why tell him it's because of non payment. I bet he pays up real fast.


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## ohiohomedoctor (Dec 26, 2010)

Mike's Plumbing said:


> I deal with this once in a while also. Most of the time people pay ASAP but some are slow payers. I can be pretty stern with people if I need to be and when they go past 7 day I call and say this.
> 
> "You are past due sir, I don't know what the problem is but you need to remit a check for the final payment immediately to avoid problems. Do you have a problem doing this today, it's a yes or no question sir."
> 
> ...


Wow!

So much for referrals..........

http://www.ohiohomedoctorremodeling.com


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## BamBamm5144 (Jul 12, 2008)

PS0303 said:


> Hey maybe you can send a few guys to his house and have them knock on his door and when he answers tell him they are here to start removing the shingles. When he asks why tell him it's because of non payment. I bet he pays up real fast.


Or calls the police and sends me to jail.


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## Mr Latone (Jan 8, 2011)

Bam,
"...when he gets paid...."

Sounds like he has some kind of loan that is time contingent on something. It may be the work you did , it may be something else in his life. Bottom line, when you agree to work with someone, the terms of payment should be crystal clear.

If you work with someone who says, "I am getting a loan to cover this and the bank needs to inspect for completion, after which they will issue a check within 3 days". Or any other type of arrangement, it keeps you comfortable because both of you you have agreed to the terms.

You have the choice to reject the terms, of course.

Develop a matter of fact and comfortable way to discuss terms when you sign the contract. As others have said, it easiest when all parties fully understand how payments are to be made.


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