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bdm408
11-25-2008, 03:30 PM
I was having a discussion with one of my friends who is a General Contractor about a project he did. He told me that the bad thing about being the subcontractor is that you have to furnish all the materials with your own money.
I told him why he didn't collect the 10% which I thought was the legal amount to collect. But he said that on large projects you can't collect the 10%. I thought that might be a southern california thing but he says that it's like that in all of california.
Can someone please help me on this, because from all the books and classes I've taken I've always thought that 10% is the legal amount to collect. Or is it different when you're the subcontractor?
Thanx to all. Have a great Thanksgiving!!

Fvstringpicker
11-25-2008, 04:38 PM
Unless the "10%" is found in state law, you answer depends totally on the contract terms.

Tyler7692
11-25-2008, 11:13 PM
I always do 1/2 down, 1/2 on completion for larger jobs.

Ric3077
11-25-2008, 11:14 PM
I do 33% down...I am thinking of going to 50% down though

Albery's Lawn & Tractor
11-25-2008, 11:21 PM
50% down or more depending on material cost.

richallseasons
11-26-2008, 12:28 AM
at least 50% up front

AI Inc
11-26-2008, 07:45 AM
Depends on state law, in Mass one can ask for no more then 1/3 down.

Green Finger
11-26-2008, 01:23 PM
50% down or more depending on material cost.


Ditto you want to at lease cover any cost of materials JUST in case you have a SLLOOOOwwwwwwwwwwwwwww payer.:cry::cry::cry:

P.S. you still have to pay employees, so you better get half.

nnj18
11-26-2008, 02:27 PM
I've been doing 33% up front on anything over $2000

AJ Lawnscapes
11-27-2008, 09:38 AM
PA just signed a law that limits us to 33% down plus speacial materials until the job is complete. Goes into effect July 1st 2009. Licensing and all that hoopla.

So, I'm going to cover my Labor, Materials, Fuel, etc in that 33%. There is no way that anyone can properly do a job on only 33% of the contract price until said job is complete.

Right Touch
11-28-2008, 10:08 AM
33% up front, 33% the first day of construction, final payment due upon successful completion. The first 33 covers most of your material, the second covers the rest and your labor, and the final is your profit (hopefully). This way if you do get a slow payer, all your expenses are guaranteed to be paid for before you spend 3-4 days or however long the project takes, the whole time worrying if you are doing it for free.

YardPro
11-29-2008, 09:04 AM
on a lot of bid out commercial work, you cannot get a "deposit" .... you can however get draws..

on small work, you do not get draws, and most of the time have to wait 60 days before you collect.

capnsac
11-30-2008, 03:37 PM
Where would one find such a law just so they knew how much they could legally ask for as a down payment?

TXNSLighting
11-30-2008, 06:10 PM
50% up front here. Wont start without it. 10% is a joke.

Waterit
12-01-2008, 07:01 PM
50% on signing contract when working directly for owner, including most homebuilders.

Homebuilders who won't put $$ down get "Notice of Intent" filed on them. I send 'em a lien release once their check clears.

On commercials, I have contractor issue a "Joint Funds" letter to my vendors, guaranteeing them payment by the contractor. Then I take it a step further and have the vendors set up a separate account for that particular project with payment terms of "you'll get paid when I do - yo have the JF letter and my word on it".

thegreek
12-05-2008, 11:13 PM
in ca for contractors its 10% or 1,000 max and you suppose to go with whatever is smaller.

thegreek
12-05-2008, 11:23 PM
in ca for contractors its 10% or 1,000 max and you suppose to go with whatever is smaller.

B & B Yardscape
12-09-2008, 10:20 AM
50% up front. 50% when complete. is what I do in MI.

I would read the law on the 10% for CA. 10% up front. 40% first day of construction. Most jobs, (depending on size) use up 50% or more of the estimate the first day or week. Buying materials and preping the area.

bdm408
12-13-2008, 09:22 PM
50% up front. 50% when complete. is what I do in MI.

I would read the law on the 10% for CA. 10% up front. 40% first day of construction. Most jobs, (depending on size) use up 50% or more of the estimate the first day or week. Buying materials and preping the area.

Excuse my ignorance, but are you suggesting that I ask for 40% the first day of construction or is that what is allowed to collect according to CA law? Thanx very much!

Big Lebowski
12-13-2008, 09:32 PM
Nobody has said this but I am assuming this relates to dealing with banks that are doing the financing and the regulations that are in relation to the terms of the loan?

I cannot see how any governing office would have control over how much I request from a private citizen for a private project and private contract. I mean really. If that were the case then maybe the politicians should do the work since they seem to have a better understanding of the ways of the world than the typical working man.

ford550
12-13-2008, 09:46 PM
33% up front, 33% the first day of construction, final payment due upon successful completion.

That's exactly how I have been doing it too, without complaint.

Jim_Coleman
12-24-2008, 03:07 AM
~Standard Disclaimer - I'm not a lawyer~

CA law is a deposit collected at contract signing can not be over 10% or $1000 of the bid; which ever is less.

After that, materials and completed work may be billed and collected as agreed to and written in the contract.

ANC Stone Creations
12-24-2008, 06:26 PM
I usually collect a 50% deposit as per contract.

I am no Lawyer either, if they sign the contract they have to follow the contract, what ever it may be.

I have never heard of a State to set the rules for what you can charge as a deposit.

Does not seem right for them to say you should pay for the customers materials.
What if they were to pass away before the project was completed?
Are you stuck with the material bill? Or will the State pay you for it since you followed their rules.

I would check into it more through the county.

Good luck to you

thegreek
12-25-2008, 05:28 AM
~Standard Disclaimer - I'm not a lawyer~

CA law is a deposit collected at contract signing can not be over 10% or $1000 of the bid; which ever is less.

After that, materials and completed work may be billed and collected as agreed to and written in the contract.


Wish I had said it like that. Its on every contractor test in ca so they know you know.