# How much Money do you get up-front?



## Mike Finley (Apr 28, 2004)

10% up front
80% divided over the project
10% upon completion



NewL said:


> I had a bid out for a small job, a couple weeks work for $3200 (labor) + materials. My contract stated 50% up front ($1600), 25% due at half way point and balance at end of job. Customer came back with request for 25% down, 25% at half way and balance at end of job. These people said they have had trouble with contractors and were working at getting money back from a roofing contractor. I sensed future problems so I refused to adjust my payment schedule and they decided not to hire me. Much as I could use the work I felt good when they turned me down.
> Chuck


Too bad you didn't offer up an alternative that worked for both of you. You and the customer had trepidation with your percentages a nice win/win would have been a progressive payment schedule during the job. The customer sees work getting done and you get paid, nobody gets out of wack with the other and everybody keeps happy. Of course there is the chance that they wouldn't have agreed and 50% upon completion is ludicrous. But most people loosen up pretty quickly once you explain the progressive payment thing and they see how it works for both sides.


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## AAPaint (Apr 18, 2005)

Less than $1000 50% deposit to get a spot on my schedule. 50% due at completion. 

More than $1000 30% deposit to get on my schedule, 30% after completion of prep, 30% at finish. 

No two ways about it. No pay, no play.


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## slickshift (Jun 14, 2005)

cdac said:


> you might be losing some money there chief...


:laughing: 
I'll make it up on the 30/50/50 jobs
:laughing:


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## slickshift (Jun 14, 2005)

AAPaint said:


> Less than $1000 50% deposit to get a spot on my schedule. 50% due at completion.


I was thinking of making in 10% to schedule
You don't have any balking with 50% to calender it?


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## deisel_22 (Oct 13, 2005)

The following is part of MA way of making more work for anyone charging more than 1000.00. Part of the Home improvement Contractors license program... mandatory payment yearly and protection for the homeowner


6.A time schedule of payments to be made under the contract and the amount of each payment state in dollars, including all finance charges, if any. 

_Any deposit required to be paid in advance of the start of the work SHALL NOT EXCEED one-third of the total contract price or the actual cost_

of any material or equipment of a special order or custom made nature, which must be ordered in advance of the start of the work to assure that the project will proceed on schedule. No final payment shall be demanded until the contract is completed to the satisfaction of all parties.

Here in Mass, the paperwoek spellss it out for us. I don't mind the third down, it does cover those weeks that tend to stretch... john d


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## go dart (Dec 6, 2005)

remember when expos terms were entire job paid before start? i used that against them all the time


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## redwing510 (Jan 28, 2006)

Looks like you got your answer, everybody is diferent. I've done jobs from $500.00 to houses in excess of $200,000.00. I ALWAYS TRY to get half down to cover my materials, quarter at "close in", and balance at finish. On the larger jobs I will accept 1/3 - 1/3 - 1/3. To me its whatever the market in your area is. Good luck, its best to CYA.:thumbsup:


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## slickshift (Jun 14, 2005)

deisel_22 said:


> Here in Mass, the paperwoek spellss it out for us...


I've noticed that
I just moved here last month from Connecticut, and for being neighbors the states are really different
All my contracts have to be reworked
I haven't got to that one yet-or maybe I did but figgered on the 1/3
paperwork gets me a lttle :blink: 
Guess a 50% to schedule is out for me then


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## nadonailer (Nov 15, 2005)

10% is the max allowed down here in Cali, so I stick to that. Of course that just locks up my schedule upon contract signing, and more is due upon start of work/delivery of materials, etc... I try to set up the payment schedule so that the next phase's material costs are taken care of beforehand. real small jobs (up to 10k) I will do 50/50 just to save the customer the trouble of writing a bunch of little checks, and most of them are fine with that.
A big job for me is 20-100k and like I said, I try and frontload the payments so that by the time I'm done, they don't owe me too much. Just in case  
How do y'all handle payments for extras and change orders? Every week, or all at the end?


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## AAPaint (Apr 18, 2005)

slickshift said:


> I was thinking of making in 10% to schedule
> You don't have any balking with 50% to calender it?


Honestly, no. I just tell people how I do it. 50/50 under a grand, 30's over a grand. Never had anyone even question it. Sometimes I let people slide on the first payment for jobs under a grand, IF they are friends or something, but I still usually make them sign a contract. I make the customer understand that anything under $1000 is small potatoes, and we ask for half to help cover materials and the labor. Wonder if FL has a law that says I can't do that, lol!!


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## rino1494 (Jan 31, 2006)

nadonailer said:


> I try and frontload the payments



We do the same thing. We do site work for developments and small commercial buildings. So, we get paid for each line item of work we do. We try to front load a bit to have some extra money for materials for future work.


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## RobertCDF (Aug 18, 2005)

Under $500, nothing down (unless I feel uneasy about the person) Above $500, nothing to get a spot on scedule full material cost due 1 week before work is to start. Progresive payments for jobs longer than a month otherwise balance due upon completion.


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## mdshunk (Mar 13, 2005)

For residential service calls... due upon completion if someone is home or bill sent, net 30 days if no one is home.
For commercial service calls... bill sent, net 30 days.
For new work for a GC, 50% after ruff inspection, 50% after final inspection.
For new work for a homeowner, 50% down, 25% after ruff, 25% after final. 
All change orders paid immediately after change is completed. 
For T&M work that runs long, invoice for that week's work to be paid weekly (on Friday or the following Monday).


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## Paul Nee (Mar 10, 2005)

Who's money is worth more, Yours or theirs . I always ask for 50% deposit /25% 1st payment 12.5% third and 12.5% final payment. This way if there going to hold the last payment due to unsatisfaction or if they just want to be jerks , Yourpotential loss is usually your mark up.


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## paintr56 (Feb 4, 2005)

*ten percent*

I get 10% at signing to schedule work and remainder upon completion. I would agree with your customer your payment schedule is too aggressive for me to sign I hear way too many stories about jobs not completed.


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## sage (Feb 3, 2005)

I take 5 to 10% non refundable to book a job. Since I do a lot of high end remodels there tends to be tons of special order Items. For that reason I get 100% of estimated material costs up front and 35% of labor estimations, 35% later and 30 at close of the job. This is how I like to do it but I am flexible, granted that the client meets *all* my prequal criteria. In the last remodel I did I asked the HO for a check for 35k upfront,  , I had to rework the pay structure and subtract the cost of his soiled britches. All worked out in the end.

For small jobs, service stuff, I take 100% at completion or within 30days if the HO isn't home which is usually the case.


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## NewL (Dec 3, 2005)

Mike Finley said:


> Too bad you didn't offer up an alternative that worked for both of you. You and the customer had trepidation with your percentages a nice win/win would have been a progressive payment schedule during the job. The customer sees work getting done and you get paid, nobody gets out of wack with the other and everybody keeps happy. Of course there is the chance that they wouldn't have agreed and 50% upon completion is ludicrous. But most people loosen up pretty quickly once you explain the progressive payment thing and they see how it works for both sides.


There were other issues too... A 2nd floor porch floor leaking into a livingroom. No room to pitch and customer wanted no standing water (in the pacific NW; are you kidding?) and the job done, tear off and replace, for ~ $1,100 complete.

I decided to pass.


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## fox builders (Jul 26, 2006)

run don't walk, Had old electrical contractor tell me if they question down payment get out now


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## RobertWilber (Mar 5, 2006)

mdshunk said:


> For residential service calls... due upon completion if someone is home or bill sent, net 30 days if no one is home.
> For commercial service calls... bill sent, net 30 days.
> For new work for a GC, 50% after ruff inspection, 50% after final inspection.
> For new work for a homeowner, 50% down, 25% after ruff, 25% after final.
> ...


Pretty much the same, except resi calls are net on receipt for mailed or left behind bills.


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## Grumpy (Oct 8, 2003)

Most of my jobs last a day or two. Sure we do some jobs that last a couple weeks but never anything longer than that. I have been kicking around the idea of offering no money down, except in the case of special order items such as some sidings and all windows. 

I am considering doing this for two reasons. 1) It will lower the administrative work load. 2) It will prevent me from spending downpayments on un related bills. 

I forsee a problem with this. I expect a month or two of a huge cash flow problem before the new cycle takes grip. The other problem is if I get stiffed, I get stiffed big. 

Just trying to figure out ways to maximize efficiency thus increasing profits.


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