# Deposit agreement.



## TheItalian204 (Jun 1, 2011)

I have 6 page long legal document that I use to collect reservation/material and commencement of work deposit.

However I think,a lot of times this document is a lot of hassle to some homeowners who do trust me already(since my checks are ALWAYS cut on name of company) and there is a lot of legal talk that not all of the get and I spend another 50 minutes interpreting it.

How do you guys collect your deposits?

I would like something simple and flexible, yet good enough for HO in doubt to trust money to me,that I can use and was wondering if you guys have any examples.

Thanks


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## griz (Nov 26, 2009)

A six page contract is going to scare a lot of people away...

My attorney once told me that the more where to fores & pages just make it easier for another attorney to take apart.:thumbsup:

Keep it simple...the judge knows you're a contractor & not an attorney...:thumbsup:

With a lot of pages of legal mumbo jumbo you can be made to look like a fool when you can't explain/translate most of it...:thumbsup:


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## Brickie (Jun 15, 2006)

I collect them mostly via a check. If they want to pay with cash, I have receipt books in every one of my vehicles


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## TheItalian204 (Jun 1, 2011)

Brickie said:


> I collect them mostly via a check. If they want to pay with cash, I have receipt books in every one of my vehicles


Well yea thats understandable but I take up to 50% upfront depending on project and at this point I have couple coming up running in upper part of double digits so I wouldnt want to scare anyone away with either 6 pages or one 

Just looking for fresh ideas and experiences you guys had that you can share.

Some stories would be appreciated too


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## Brickie (Jun 15, 2006)

Here you go:


_All work is to be completed in a workmanlike manner according to standard practices for the sum of: Seventeen Thousand Dollars ($17,000.00) with down payment and progress payments to be made as follows: 

$8500 down

$4250 progress payment due upon 50% completion (meaning the new Masonry structure will be 7’ 4” high) of masonry construction

$3400 is due immediately upon substantial completion of the scope of work as outlined in this proposal.
_
$_850 balance due upon completion/at the final walk through with the homeowner
TERMS ARE AS FOLLOWS: 

Payments shall be made as provided in the agreement. For purposes of clarification, the term “substantial completion of the scope of work” means the Contractor has completed all work called for in the contract documents even though minor items may remain to be installed, finished, or corrected and the building is ready to be used and occupied by the Owner. These items will be addressed at this time and completed prior to payout of the final payment, but shall not delay the payment for substantial completion. The acceptance of the work and making of the final payment shall constitute waiver of all claims by the Owner.

In the event Owner shall fail to pay any periodic or installment payment due hereunder, Contractor may cease work without penalty or breach of Contract pending payment or resolution of any dispute. Contractor shall not be liable for any delays due to circumstances beyond reasonable control including but not limited to: strikes, weather delays, casualty, acts of God or nature, fire, arson, or general unavailability of materials. 
_



This is very basic & you have to add stuff to it.


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## TheItalian204 (Jun 1, 2011)

Brickie said:


> Here you go:
> 
> 
> _All work is to be completed in a workmanlike manner according to standard practices for the sum of: Seventeen Thousand Dollars ($17,000.00) with down payment and progress payments to be made as follows: _
> ...


This is great example.

Is your contract and deposit agreement same document?

I use two separate documents...after all the screw ups lately I altered to two pages contract that now looks miserable in comparison to 6 page deposit agreement


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## Brickie (Jun 15, 2006)

TheItalian204 said:


> This is great example.
> 
> Is your contract and deposit agreement same document?



Yes it is. Like I said, you have to adjust it to comply with whatever the Canadian laws require of you as far as terms, etc.

As you can see, I love progress payments:thumbsup:


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## ranteso (Nov 11, 2010)

I do not agree on two separate doc's. Of course what works for you works for you, but if you are receiving a deposit/downpayment which is actually a payment for materials and services, you already have an agreement reached and it all should be part of the agreement (contract). 

My agreements can be on my short form agreement (simple one or two day projects) and up to as many pages required for a large scale remodel. There's no limit on pages, it is what it is.


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## BrandConst (May 9, 2011)

6 pages.....that just sounds nuts to me


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## gopman614 (Feb 10, 2009)

griz said:


> A six page contract is going to scare a lot of people away...
> 
> My attorney once told me that the more where to fores & pages just make it easier for another attorney to take apart.:thumbsup:
> 
> ...


I collect anywhere from 30% to 50% down payment. In most cases I collect 50% and then two payments of 25% each. I also stipulate payment within 2-3 days to keep the job flowing.


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## jimmys (May 1, 2009)

+1 on not having separate contracts. Go with your actual work contract, and make the wording align with how you want to get paid. I always talk through the contract in english, so people understand it (or say they do). Mine's 4 pages, not counting estimate, drawings, pay schedule, etc. One page is just what the state requires, so really it's three pages.
Jim


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## red_cedar (Mar 30, 2005)

> PAYMENT SCHEDULE
> Payment of $___________________ on signing of contract. Balance paid in 3 equal payments, beginning with job start and ending on successful completion..


This one was for a recent 60k roof job. Deposit was 15k


I always try to keep it simple but somewhat detailed in what is being offered. Try for everything on 1 page typed in a 'letter form' with a size 10 font, rarely goes 2 pages.
To me going 2 pages or more likely to confuse. flipping thru pages just to refence something.


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## KAP (Feb 19, 2011)

I agree... 6 pages is way too much...

Agreement on front, proviso's/warranty's, etc. on back, with an initial line next to each that shows you reviewed each one with your client...


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## VinylHanger (Jul 14, 2011)

6 pages is nuts for a deposit agreement, but not if it is your main contract. Just the stuff the state makes me put in, plus the company letterhead and customer info section takes up a page and a half on mine. The rest is the stuff to protect yourself. Job size dictates a lot of those line items.

I do need to come up with a shortened contract for small jobs, but sometimes those are the ones that end up giving you the biggest headaches with the littlest reward. When a customer gives me a sideways look about my 5 page contract, I just explain that the State makes me do it, plus every single line item has been an issue in the past and it is to protect them as much as me.


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## BamBamm5144 (Jul 12, 2008)

I have mine on 8x14 sheets. Proposal on front, whole terms and conditions on back.


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## NYCB (Sep 20, 2010)

Mine is pretty barebones, but most of my jobs are 5k or under. I got a few examples from this site and picked out parts from each to come up with something that covers all my bases, and is easily understood by the homeowner.


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