# client wants joint account for project



## gsp (Jan 20, 2005)

I have a client that wants me to open a joint bank account with him to finish his basement.
I'm more the sub-contractor since he is paying the other contractors. 

I have been contracting for 18 yrs and have never been asked to do this. I have already told him I'm not comfortable with that.

Does any one know what the reason would be?


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## rotarex (Mar 31, 2008)

how much are you getting paid?


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## dave_dj1 (Mar 16, 2010)

if you are just a sub, then just have him (HO) pay you in the usual payments.


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## Anti-wingnut (Mar 12, 2009)

gsp said:


> IDoes any one know what the reason would be?


Cause he's hell bent on making your life a living hell?

Sounds like real trouble if there are any hick ups

What is your scope of work, especially if he's paying the subs? Are you a de facto hourly superintendent?


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## Heritage (Mar 20, 2007)

He wants to marry you and this is his way of gauging your interest and level of commitment.:w00t:


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## Morning Wood (Jan 12, 2008)

I can't even begin to see the benefit of a joint checking account. He deposits and you withdrawl. Why doesn't he just write you a check and be done with it. Or he could do an electronic deposit directly to your account.


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## festerized (May 19, 2007)

It’s no different than getting a bank draw
Go to service magic and look at their set up. I forgot what the program is called but the funds are put into an account and you receive your payment 30 days after billing & receiving a bank inspection.


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## Jaf (May 10, 2010)

I don't know, check into it more, I've heard of it. I'm not a banker but I think it's like an escrow account. I think he wants to set it up so no money can be taken out unless you both agree to it.

Could work to your benefit. You'll apply for your payments like normal. You both sign off, you go to the bank, and get your money. The bonus is, he can't get his money back either, unless you sign off. If you run into a problem, you have added leverage.

I'm not totally sure, but I think it's to your benefit. Even with this set-up, stay ahead in the payments. Get a deposit, ect... Work off his money, not your own. 

Oh, check with a lawyer, on how to set it up properly. I wouldn't let him set-up the language. If that was the case, I'd be leery.


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## gsp (Jan 20, 2005)

Jaf said:


> I don't know, check into it more, I've heard of it. I'm not a banker but I think it's like an escrow account. I think he wants to set it up so no money can be taken out unless you both agree to it.
> 
> Could work to your benefit. You'll apply for your payments like normal. You both sign off, you go to the bank, and get your money. The bonus is, he can't get his money back either, unless you sign off. If you run into a problem, you have added leverage.
> 
> ...


Having my name on the account makes me liable for the account? He puts in 70k, my bill is 20k, how do I explain the other 50k to my accountant? Why hasn't he asked the other contractors to do the same? 

My attorney advised me not to. He provided no papers other than he wanted my ssn and other info. 
I don't even have a joint account with my wife of 16yrs.


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## kevjob (Aug 14, 2006)

gsp said:


> he wanted my ssn and other info.


why would you as a business give him any kind of personal info?

Be very careful with him....


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## TxElectrician (May 21, 2008)

gsp said:


> Having my name on the account makes me liable for the account? He puts in 70k, my bill is 20k, how do I explain the other 50k to my accountant? Why hasn't he asked the other contractors to do the same?
> 
> *My attorney advised me not to*. He provided no papers other than he wanted my ssn and other info.
> I don't even have a joint account with my wife of 16yrs.


 
If you value the advice of people on the internet that you don't even know more than you do of someone you're paying to look after your interests, time to look for a new advisor. If you trust him, listen to him, even if it means losing this project.


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## gsp (Jan 20, 2005)

TxElectrician said:


> If you value the advice of people on the internet that you don't even know more than you do of someone you're paying to look after your interests, time to look for a new advisor. If you trust him, listen to him, even if it means losing this project.


I really wasn't looking for advice on what to do, but rather why he was wanting to do this.


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## festerized (May 19, 2007)

How long is the project going to take? 3 weeks? Come on. All that for a small project
 What exactly is your responsibility? Forman? Carpenter? Panting?
If he’s that concerned brake down the payments from 3? To 10


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## TxElectrician (May 21, 2008)

gsp said:


> I really wasn't looking for advice on what to do, but rather why he was wanting to do this.


 
If it is not a good deal for you it does not matter why he wants to do it.


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## festerized (May 19, 2007)

Why you ask.
Maybe he’s nuts or he has been taken in the past.
Show him some previous projects; have him meet the same HO’s. Sell it!
Having the new client meet your past clients is a great way to gain confidence in your new client.
Also walk away for a bit and let them talk in private for awhile, if project was perfect the happy client will sure explain your worthy if asked 
If that not enough them something else is missing from this equation


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## Mike's Plumbing (Jul 19, 2010)

I have no idea why:blink:

This could really mess your world up in a hurry. You might want to ask the HO why HE want's to do this and tell him what YOU want to do.

Scratch that, just tell him what you want to do.

Mike


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## Jaf (May 10, 2010)

gsp said:


> Having my name on the account makes me liable for the account? He puts in 70k, my bill is 20k, how do I explain the other 50k to my accountant? Why hasn't he asked the other contractors to do the same?
> 
> My attorney advised me not to. He provided no papers other than he wanted my ssn and other info.
> I don't even have a joint account with my wife of 16yrs.


Do what your attorney says, obviously.

Doesn't make sense. I can see why the contractor would want the contract amount put in escrow. Can't imagine why the ho would want it that way. Why 70k if your only expecting 20k? Something's hinky there.


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## gsp (Jan 20, 2005)

festerized said:


> How long is the project going to take? 3 weeks? Come on. All that for a small project
> What exactly is your responsibility? Forman? Carpenter? Panting?
> If he’s that concerned brake down the payments from 3? To 10


I am responsible for Framing, insulation, drywall, trim and doors. I am to be paid in full for each of the above phases as they are completed. 4 payments. I wasn't even asking for start up money. Only draw I asked for was for doors, 2500 to be paid after insulation was complete. Doors are non refundable.


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## gsp (Jan 20, 2005)

Jaf said:


> Do what your attorney says, obviously.
> 
> Doesn't make sense. I can see why the contractor would want the contract amount put in escrow. Can't imagine why the ho would want it that way. Why 70k if your only expecting 20k? Something's hinky there.


I dont know what he's depositing in the account. Just making an example.


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## festerized (May 19, 2007)

Is he a lawyer or doctor? 
If any from above run and don’t look back
As said before: never lost a penny……………..
Is he paying for material? Other then the doors
Break it down to 12 to 16 payments:
½ materials at the start off each faze and balance of material when that material arrives on site. Then labor at end of that faze.
If he can't do that then you need a backup plan. I’m no bank and my draws are as honest as you can get.


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## SubwayGuy (Sep 1, 2010)

gsp said:


> My attorney advised me not to. He provided no papers other than he wanted my ssn and other info.


You should ABSOLUTELY not do that.


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