# Do you charge a down payment for a larger job?



## brooksh (May 24, 2008)

Just wondering if I should charge half at the start of a job and the other half at the end, or all at the end? What do you do?


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## Double-A (Jul 3, 2006)

I'm staying out of this one this time. I suggest you do a bit a searching. This subject has been covered quite well once or twice with some nice pie fights thrown in for excitement.

_Disclaimer - The above statement neither answers nor avoids the question of the original poster, but rather, side steps it in its entirety. In no way shape or form should this response be considered an answer or even a reply to the above referenced post. Failure to ignore this post may lead to premature baldness and a noticeable growth of hair from the insides of you ears, as well as causing the 'boys' to ride lower than usual. Double-A and his assignees and successors shall not be liable for the loss of animal magnetism you once may have had to the opposite gender. Please press 1 to speak to an operator. This conversation may be recorded for quality control purposes._


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## ProWallGuy (Oct 17, 2003)

Excellent disclaimer AA. When are you announcing your candidacy? 

I personally take a 33% deposit on any and all jobs I do, big or small. I'm not a bank, I don't care to finance anyone's project.


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## genecarp (Mar 16, 2008)

DEPOSIT + progressive payments. unless of coarse its an old established client, then i bill when i need $.


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## Dan_Watson (Mar 1, 2008)

1/3 to schedule, 1/3 at start, 1/3 at finish


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## rbsremodeling (Nov 12, 2007)

For me its 10% down and progressive payments as we go along. 10% will usually cover plans and permits maybe demo depending on job size


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## Jason Whipple (Dec 22, 2007)

brooksh said:


> Just wondering if I should charge half at the start of a job and the other half at the end, or all at the end? What do you do?


This is done many different ways. The most important way is to figure out the length of the project, and what your needs are throughout so you can keep the job on track and on time.

You can do it any way you want to, just don't change the rules somewhere in the midst of things and expect everyone to go along with it. Plan, Plan, Plan!

Oh, and know the laws of your state, you may not realize that there are maximum amounts already set in some states.

Love the disclaimer double A! :laughing:


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## JenkinsHB (Apr 8, 2006)

if it's a job that will be 2+ months, i try to schedule progress payments to be paid every 2 weeks and provide them with a lien waiver for the money paid. helps cash flow and keeps the subs paid.

-Dan


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## Jake Stevens (Dec 10, 2007)

On most jobs we are 1/3 down and balance when completed. On large job we are 1/3 down, 1/3 at the half, balance when completed.


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## kevjob (Aug 14, 2006)

some states limit down payment check with your local laws first


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## wizendwizard (Nov 11, 2007)

50% down, 40% somewhere near middle of project, 10% due upon completion. 

I could care less what the state says, I don't cheat people and I ain't setting myself up to be cheated by people.


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## poolcageman (Dec 10, 2007)

Watch your State Statutues! In Florida anything over 10% and you do not submit for permit within 60 days Big Problems. Alot of guys during the Hurricane got nailed for taking over 10% and not submitting for permits.


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## MacRoadie (Dec 9, 2007)

wizendwizard said:


> 50% down, 40% somewhere near middle of project, 10% due upon completion.
> 
> I could care less what the state says, I don't cheat people and I ain't setting myself up to be cheated by people.


 
Here in California, excessive down payments are one of the top 5 easiest ways to get fined or have your license pulled. Maximum down payment is 10% or $1,000.00, whichever is _LESS._


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## kevjob (Aug 14, 2006)

Why not take 10% down and then 30% after demo or some small stage to stay within the states requirements?


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## wizendwizard (Nov 11, 2007)

kevjob said:


> Why not take 10% down and then 30% after demo or some small stage to stay within the states requirements?


All of the senarios work. The point is really not to foot the bill for someone elses project. If you trust your homeowner do it at any rate you wish. 

Be aware you can take a big hit if you leave too much at the end to be paid upon completion.


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## wizendwizard (Nov 11, 2007)

MacRoadie said:


> Here in California, excessive down payments are one of the top 5 easiest ways to get fined or have your license pulled. Maximum down payment is 10% or $1,000.00, whichever is _LESS._


<<<<<<<<<<<<<<< Not in Cali.


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## Jason Whipple (Dec 22, 2007)

wizendwizard said:


> <<<<<<<<<<<<<<< Not in Cali.


:laughing: I swear, there needs to be a "California Contractors Talk":w00t:

(it's a whole different world there)


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## Chris Johnson (Apr 19, 2007)

In Cali when the materials hit the site you can invoice...I'm not a bank, I may get 30d terms, but you must pay now, if you don't want to pay for visable materials on site I think we are going to have an issue down the line and I want out now

Commercial there are no deposit rules...only applies to residential


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## Meetre (Nov 2, 2007)

Jason W got it right. What do you need? do you have payments for materials to make, subs to pay, payroll for employees, taxes, comp., insurance, rentals...the list goes on. How long is the project? We can't tell you the answers to these things, but you can. Plan it out, think about what you have to pay out, and set the payments from there. Ask yourself, "is this a pita customer?" maybe you need to front load the contract to cover your butt. Is this an old customer that I know? Maybe you bill 10% down, and weekly or monthly payments for expences. Once you have decided, add it to the contract. Questions?


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## d-rez (May 16, 2007)

I think it depends on the size of the job. The OP said 'larger job', which to me is $100K and up. If the client likes my proposal, but wants to work with me further on hashing details out, I charge about 5% of total projected budget, to work with them on details, taking them to showrooms, etc. Per my draw schedule in the Contract, I get another deposit(or earnest money) at signing. Hope this helps.


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