# paying a window subcontractor



## slowforthecones (Aug 24, 2008)

Question - do you home builders pay a window subcontractor a downpayment for the cost of the windows? On a $25k window job, should I be paying $5000 down payment for windows?


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## Patrick (Apr 12, 2006)

slowforthecones said:


> Question - do you home builders pay a window subcontractor a downpayment for the cost of the windows? On a $25k window job, should I be paying $5000 down payment for windows?


I would make you give me $8300 before we order a single window


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## CookeCarpentry (Feb 26, 2009)

Maybe order the windows on your account, then hire a sub to install?


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## slowforthecones (Aug 24, 2008)

I gotcha bro..but this is a business to business arrangement, so I suppose $5000 is reasonable. Thanks. In the past I've had subs only ask for $2k down and the remainder once the windows are delivered on-site.


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## Patrick (Apr 12, 2006)

slowforthecones said:


> I gotcha bro..but this is a business to business arrangement, so I suppose $5000 is reasonable. Thanks. In the past I've had subs only ask for $2k down and the remainder once the windows are delivered on-site.


a lot of it depends on what their profit margin is. we have also done some work with 20% down 30% at start


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## slowforthecones (Aug 24, 2008)

I'm a bit afraid of the sub screwing me over, so the job is alittle further than where I usually do fire restoration... recently a few fellows homes got burned in the "station fire" in southern california. Got calls off the hook from word of mouth referrals.


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## CookeCarpentry (Feb 26, 2009)

Seems like this is more of a reason to purchase the windows on your account. At least you know they are ordered and paid for.

Worst case scenario would be being burned for a smaller labor only downpayment from a sub.

Just my 2 cents...


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## slowforthecones (Aug 24, 2008)

I have a call into the sub. I am going to tell him that he can put a hold/charge on my credit card and reverse the hold once the windows arrive. I will pay him in a check instead on the spot. Do you think that is reasonable since I have not worked with this firm before?


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## CookeCarpentry (Feb 26, 2009)

So basically he orders them using your card to pay?


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## slowforthecones (Aug 24, 2008)

I meant to say he charges my card for $5k, I pay the added cost for the processing up to 3% in lieu of a check payment since I never done business with the guy and want to protect myself from him walking of with my cash.

with credit card, no delivery of goods is a good charge back.


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## W-Tinc (Feb 15, 2008)

Maybe you could just write the supplier a check. Even better buy the windows and have them on site for him to start, no need for any deposit then.

You are new to him too, no offense but when a customer does not want to pay a deposit on expensive materials that tells me they are probably not going to be the greatest people to work for.


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## IHI (Dec 25, 2004)

After being screwed out of tens of thousands over the years i'm an azzhole on preordering items, esspecially special order stuff like windows, i get 100% window cost up front before i place the order that way if somebody wants to screw me i'm not stuck with thousands in windows i cant do a thing with since they're ordered for their job. I dont care if it's a freind, contractor, whomever....i've met ALOT of good folks and put my credit/accounts on the line; then they burnt me hard....so if they dont do the 100% window downpay, i got plenty of other things i can do, i'll gladly lose an account/client/assotiate vs losing my azz ever again...my house could've been paid for free and clear with the amount i've been phucked over on in the past 9yrs.


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## HSConstruction (Mar 21, 2009)

it sounds like your trust for this sub is 0, why did you hire someone you do not trust? 

As mentioned before MY down down payment would cover the windows so I am never out of pocket if I get screwed


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## AustinDB (Sep 11, 2006)

it's all been covered above; you don't trust him, he doesn't trust you. You shouldn't trust him-talk to his references including the rep he's getting the windows from. He shouldn't trust you-I wouldn't trust someone out of the blue but a larger company would make me feel more comfortable. 25k is a lot for windows in my neighborhood-I can put remodels in an entire house for $6-7k. From his stand point-if you turn and run, he's stuck with the windows AND he has to pay for them...that's enough to break some small time operations.

the mention of you writing the check to the supply house is a good one if the sub's ok with it. If it were me, I wouldn't feel comfortable floating a really large order like that unless a healthy profit margin was built in, the materials would be installed as soon as they arrive and payment wouldn't be an issue (now we're getting into the trust thing again).


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## slowforthecones (Aug 24, 2008)

HSConstruction said:


> it sounds like your trust for this sub is 0, why did you hire someone you do not trust?
> 
> As mentioned before MY down down payment would cover the windows so I am never out of pocket if I get screwed


I work in the north part of the state, recently I had a bunch of referrals from past customers relatives/collegues/friends in the south part of the state due to the forest fires here in California. So instead of importing northern state window subs, I'm trying out local window subs.


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## slowforthecones (Aug 24, 2008)

Yeah it's a trust issue, he can charge my credit card though. I figured out either pay his supplier with a check or he can charge my credit card.


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## Patrick (Apr 12, 2006)

slowforthecones said:


> Yeah it's a trust issue, he can charge my credit card though. I figured out either pay his supplier with a check or he can charge my credit card.


why dont you make him break out his labor and material costs for you too while your at it


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## slowforthecones (Aug 24, 2008)

Got a call in from him, thanks guys for the advice. he agreed to let me pay his supplier directly the cost of the materials $12k which I did today with a check via FedEx.


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## dougchips (Apr 23, 2006)

Trust me with 1/3 of the project cost upfront and I'll trust that you will pay me the other 2/3 when I am done. IMHO, if someone does not trust me then they should do business with someone that they trust.


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## Wilson518 (Aug 1, 2009)

Paying $5000 down payment is a reasonable price.If ordering from us,the deposit will be 30%-40% of total amount,the rest will be paid before shipment.


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## J F (Dec 3, 2005)

slowforthecones said:


> Got a call in from him, thanks guys for the advice. he agreed to let me pay his supplier directly the cost of the materials $12k which I did today with a check via FedEx.



Next step: Start beating him up on his labor, since you know material cost


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## slowforthecones (Aug 24, 2008)

J F said:


> Next step: Start beating him up on his labor, since you know material cost


Nah... there is other materials involved such as molding/trim/casing. He is entitled to make a profit. I worked out a resolution with the sub and we're both happy.


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## contrac99 (Sep 6, 2009)

slowforthecones said:


> Question - do you home builders pay a window subcontractor a downpayment for the cost of the windows? On a $25k window job, should I be paying $5000 down payment for windows?


Around my neck of the woods 10-20% is needed for a downpayment on a job this size. 25k job with 20% down? That's about right-- "entry fee" for material cost. Sometimes, though, depending on my relationship with a sub, _no_ downpayment is required. I would not pay a sub a downpayment-- anymore than 20% though, because sometimes this shows that the sub may have money problems-- with his credit from suppliers (on a 25K job).


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## contrac99 (Sep 6, 2009)

slowforthecones said:


> I meant to say he charges my card for $5k, I pay the added cost for the processing up to 3% in lieu of a check payment since I never done business with the guy and want to protect myself from him walking of with my cash.
> 
> with credit card, no delivery of goods is a good charge back.


First things first-what does your contract say? Are these terms spelled out? Is there a "Meeting of the Minds?"

Clear and concise contracts make better businessmen!


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## slowforthecones (Aug 24, 2008)

It sounded like a red flag warning thinking this guy had credit/money issues with the window factory but now all is resolved. Thanks...Just too busy with 7 jobsites within 1 mile of each other so I have to sub out some cake work to make things go faster.


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## plazaman (Apr 17, 2005)

you order the windows. and give a deposit on labor.


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## slowforthecones (Aug 24, 2008)

problem resolved, I just became a simonton dealer as of 9/15/09


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## AtlanticWBConst (Mar 29, 2006)

slowforthecones said:


> problem resolved, I just became a simonton dealer as of 9/15/09


Way to go = :thumbsup:


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## J F (Dec 3, 2005)

Glad it worked out.


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