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Old 04-20-2013, 02:32 PM   #16
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Contractor question - did I just do something stupid???


What I usually do is ask for a draw for the materials about 1/3 if a larger job I may ask for another draw when 1/2 finished the balance on completion. This way nobody gets hurt bad if for some reason the thing falls apart. The thing about getting no money is I have seen people that went way over budget and when the job was done there wasn't any money left in the kitty. Guess who get left holding the bag then. I have seen contractors get no money up front then there is a death of husband or wife. Guess what would happen to your rep. when you tried to collect off the surviver.

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Old 04-20-2013, 02:55 PM   #17
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Contractor question - did I just do something stupid???


I feel better now. I just got home and checked the itemized list and apparently when I wasn't looking he left me another copy on the counter with my check # listed on it and his signature.
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Old 04-20-2013, 03:07 PM   #18
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Contractor question - did I just do something stupid???


See......the guy is more interested in repeat business than a quick buck.......

And thanks for reporting back.....nice to hear.....

Which reminds me....the guy who gave me a quote yesterday for insulation left his tape measure.....I need to call and leave a message so he know's it's here....and it's a nice one too.....
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Old 04-20-2013, 03:58 PM   #19
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Contractor question - did I just do something stupid???


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the guy who gave me a quote yesterday for insulation left his tape measure.....I need to call and leave a message so he know's it's here....and it's a nice one too.....
hmmm, I wonder did he "forget" his tape measure, or is it a way for him to get back in front of you ..... LOL
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Old 04-20-2013, 04:19 PM   #20
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hmmm, I wonder did he "forget" his tape measure, or is it a way for him to get back in front of you ..... LOL
Naw....he forgot it.....he and I got to BS'ing so he got distracted....

Chances are he is getting the job anyway....said all the right things....comes highly recommended, was on time....and is licensed.....
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Old 04-20-2013, 04:26 PM   #21
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So here's how to handle contractors......don't hire them...do it yourself.

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Old 04-20-2013, 06:46 PM   #22
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1. So I'm going to spend MY money on YOUR materials. I realize they are in my possession at the moment, but I don't really have any use for them.

2. Same thing...I'm going to send my guys to your house to start working (and racking up hours that I have to pay them for), before I have a dime fom you?? I'm thinking not.

So here's how to handle contractors......don't hire them...do it yourself. Unless of course you can't do it yourself, then I guess you'll have to do what is standard...pay a deposit before anything is bought/done.
Here is the thing i want to know you pay your crew before the work is started or at the end of the job? Because I am sure they want their money up front too.
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Old 04-20-2013, 09:05 PM   #23
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Contractor question - did I just do something stupid???


That's an employee/employer relationship. We're talking about a client/contractor relationship. Two very different things.

At any rate, you do business how you want to, and I will too.

And I know you're going to say "Why is it different?"......wellllllllllllll.....

As an employer, I'm required to make payroll every week/2 weeks. If I don't, there are pretty severe legal penalties.

If a client chooses not to pay their bill, the worst that can happen is I spend a great deal of money suing them, and THEN I get a judgement (which is not payment by the way), and then if I spend another chunk of money going thru collections, I might get some money........maybe even all of it

I choose to not let that happen, and get a deposit plus regular draws, keeping the money ahead of the job, so worst case, if they don't pay the final payment it's maybe 5%, and not worth suing them over.
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Old 04-21-2013, 12:24 AM   #24
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Contractor question - did I just do something stupid???


When I had a carpet store, I got the money for the carpet up front. If the customer would back out, the warehouse would charge a 50% penalty for cut carpet. It was very unlikely that anyone else would want those exact size cuts again. I took a chance on getting paid for the labor, but I certainly could not afford to lose 1/2 the cost of the material.
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Old 04-21-2013, 06:25 AM   #25
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My guess----you are in good hands--relax and call the fellow----a hand shake and a check is good in my world---
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Old 04-22-2013, 02:31 PM   #26
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Sounds like you are fine. For us every situation is different. Our state only allows us to require 10% up front from a customer, but we can say we would "like" a larger deposit to cover materials or whatever. Most customers will give us about 30% which usually covers most material costs with the net due on completion, but we have had ones that give us exactly 10% to the penny. When we work for the state, we front everything, submit our invoice and wait 30-60 days to get paid. I don't like working for the state but sometimes they are the only work there is. A couple jobs when we were subs to a general, the designer speced some exotic material that was 60-70% of the whole job, we had to put in the bid that if they used us we needed all the material money up front.
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Old 04-22-2013, 04:24 PM   #27
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This thread has helped me a lot. The siding contractor we are hiring has asked for 50% up front, which appears to be reasonable and normal.
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Old 04-22-2013, 04:40 PM   #28
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For us every situation is different. Our state only allows us to require 10% up front from a customer,.
That's insane. California should be paying your bills if they want to micro-manage your business. I'm so glad I left long ago.

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