For those that use Contracts

Discussion in 'Lawn Mowing' started by clallen03, May 31, 2007.

  1. clallen03

    clallen03 LawnSite Senior Member
    Posts: 511

    Just picked up a HOA today. I go to get the contract signed tomorrow. The effective date of the contract will be from June 1, 07. The problem is I send out invoices on the first of each month. This means bills will be sent out the same day the contract is signed.

    How do you'll handle this situation?
    Do you'll state in the contract that the first payment will be made June 1 (the same day the contract is signed) or July 1 (the next month)?

    If the date of signing wasn't the same day as invoicing I wouldn't have this decision to make. I wouldn't mind getting paid in advance for services because we have a lot of work to do to get the common areas in shape.

    Im just wondering if its common practice to send a bill out the same day the contract is signed.

    Thanks in advance for your input.
     
  2. KTO Enterprises

    KTO Enterprises LawnSite Bronze Member
    Posts: 1,286

    Invoice them on the 3rd week of the month. This way when they pay on the 1st of the next month you are just finishing up and will recieve payment for the month that has just passed.
     
  3. milsaps118

    milsaps118 LawnSite Senior Member
    Posts: 559

    If your contract terms state that you bill the 1st of every month, then after you get the contract signed send them an invoice for JUNE. I wouldn't wait till JULY to bill for JUNE then you'll always be a month behind.
     

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