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  1. #1
    Join Date
    May 2005
    Posts
    14

    Angry

    i was curious if any contrctors have a frustrating time getting paid from general contractors or home owners?what upsets me is say a 10k job on a new house,install a furnace and ductwork with a/c,start the job jan 1st with a 3k deposit put in all the duct work,every tihing else on the job goes slow(g/c an idiot).mid march now install unit and coil,get another 3k.job really going slow but i cant bill for any more money untill the job is finished,i cant finish the job because there is no pad for the outdoor unit,cant put grills in because no paint and its end of april,finally painted so i install grills,electrician has not wired furnace yet now its mid may g/c says should have yard graded and a pad in place in 2 weeks (june)well now june rolls around and there is a pad to install outdoor unit on,finish installing the outdoor unit and submitted a bill for final payment on june 8th well now the chase is on,g/c says bank pays him on the 20th and he will pay me,2 weeks after that he gives me another 3k,now in july and the bottom line is this little job has been on my back for over seven months,they still owe me 1k and i have to go back to change the location of the kithen diffuser.my question is what is your advice on proper contract wording to insure payments and not scare away people with technical wording?? my present contract states 30%deposit,30%upon rough in 30% upon equipment placment,10%due job completion.

  2. #2
    Join Date
    Nov 2004
    Location
    SW FL
    Posts
    6,238

    Hmm Draw Schedule

    Originally posted by tom9146
    what is your advice on proper contract wording to insure payments and not scare away people with technical wording??
    my present contract states 30%deposit,30%upon rough in 30% upon equipment placment,10%due job completion.
    Are you being Too Specific on your Draw Schedule?
    i.e.
    35% at time of Contract Award, Progressive Draws payable within 10 days of Invoice Receipt.

    K.I.S.S. ... but What is S imple?

    [Edited by dan sw fl on 05-28-2005 at 11:55 AM]
    Designer Dan
    It's Not Rocket Science, But It is SCIENCE with "Some Art". ___ ___ K EEP I T S IMPLE & S INCERE

    Define the Building Envelope and Perform a Detailed Load Calc: It's ALL About Windows and Make-up Air Requirements. Know Your Equipment Capabilities

  3. #3
    Join Date
    Sep 2002
    Posts
    3,708
    Thats the problem with new work,waiting on everyone else to do their job so you can gets your money.
    I could go on and on as to why we refuse to new work,but thats will just bore you.

    In my area it 60/40 and the wait on your money can be well over two years in some cases.

    If you need to see your money coming in just as quicks as it
    goes out then I can only offer you one word>

    RETROFIT!








  4. #4
    Join Date
    May 2005
    Posts
    14
    thank you for the "payable within 10 days of invoice receit"i will include that on my proposals/invoices.on the topic of the progressive draw payments could you explian that a little better?

  5. #5
    Join Date
    Nov 2004
    Location
    SW FL
    Posts
    6,238

    Thumbs up Payment after progress

    Originally posted by tom9146
    thank you for the "payable within 10 days of invoice receipt"
    progressive draw payments
    could you explain that a little better?
    Progressive Draws
    are based on your time & materials expenses for each phase.

    Projects that are much more COMPLEX
    may be billed in more than
    the 4 steps than Your wording allows.

    For example, Say there are
    Two ( or more) floors and each has a somewhat unique " Rough In" schedule.

    Payments could be billed
    35% Contract
    20% 1st rough-in
    15% 2nd rough-in
    20% Equipment
    10% Final
    based on the more flexible and less specific wording of
    simply
    "Progressive Draws payable within 10 days of Invoice Receipt."

    If the 2nd rough-in is a unique phase or is delayed, you may elect to invoice for the First rough-in. With your Current wording, the 1st rough-in could not be invoiced until the 2nd (All) rough-in(s) is (are) complete.

    This general wording does NOT Specifically state 3, 4, 5, 6, or 7 ... billings may be anticipated on a particular project.

    Of course, the actual T & M accounting must support realistic invoicing in an ethical world.

    ....... ETHICS and Timely, Good Work
    ....... are the essence of Repeat Business.
    Designer Dan
    It's Not Rocket Science, But It is SCIENCE with "Some Art". ___ ___ K EEP I T S IMPLE & S INCERE

    Define the Building Envelope and Perform a Detailed Load Calc: It's ALL About Windows and Make-up Air Requirements. Know Your Equipment Capabilities

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