Getting Paid

My contract says 30% to start the job, 30% at the mid point, and 30% upon completion. The remaining 10% is my profit and is the sole recourse or hold back a client has. I have only one person who has kept the 10% because they had bankrupted the corporation. Some people have a hard time with my calculations, but I need to cover expenses. Usually by the mid point all the materials are on the job site so they own those materials whether I use them or not. It’s their stuff so they should have paid for it. We also have pay roll that needs to be paid and I usually show how the money is spent along the way. It’s a very serious part of the business and I take it seriously. We are contractors so we deal with contracts. Writing stuff on an invoice form then hoping the client gives you the gift of payment is for kids who mow lawns. As we get older we all need to know where we stand. In contracting we are the ones who draft the contract. The client is the one who signs. At one time, with the guy who still owes me 10%, I let the guy rewrite the contract because it was hand written and he had it typed for me. He inserted a sentence that said, “and then completely painted.”  Painting was included in the bid, and contract, but it was for two coats. By adding the phrase we were required to do three coats. There were twenty two condo units in the bid. As an aside, and because I like the story, because it was one of those lemons and lemonade things, I fired my crew and started doing the job alone. In many contracts there is a time line, but not in this one. Washington State law says I have to work in a craftsman like fashion, but there is nothing to say I have to work quickly. The superintendent threatened to fire me and hire some one else so I hired a guy off the street to help. That guy could work all day every day. I happened to have caught him while he was sober and married. We worked together for about ten years until alcohol just ate him alive. Any way I was in my twenties, made way too much money on the job, never quit finished the third coat of paint, and learned a life lesson. I make a contract with the client and with each sub contractor. The subs get paid when I get paid and everything has worked out. There have only been a couple of times I had to do active collection or go pick a sub up from a tight spot. All in all it’s just good to know where every body stands every step of the way. For those times when some one balks at having a contract or if there is a discussion where the client feels they may be taken advatage of you will never have a meeting of the minds. That is what a contract is, it's an agreement, that both parties understand. 2009-08-21T04:32:34Z

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getting-paid

2009-08-22T08:34:14Z

2009-08-22T04:34:31Z

How many times has some one looked down at you for asking to be paid. I like to get paid up front.

Getting Paid

2009-08-22T16:17:51Z