Is the deposit always 10%?

Discussion in 'Business Operations' started by bdm408, Nov 25, 2008.

  1. bdm408

    bdm408 LawnSite Member
    Posts: 19

    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!!
     
  2. Fvstringpicker

    Fvstringpicker LawnSite Fanatic
    Posts: 7,604

    Unless the "10%" is found in state law, you answer depends totally on the contract terms.
     
  3. Tyler7692

    Tyler7692 LawnSite Bronze Member
    Posts: 1,086

    I always do 1/2 down, 1/2 on completion for larger jobs.
     
  4. Ric3077

    Ric3077 LawnSite Bronze Member
    Posts: 1,113

    I do 33% down...I am thinking of going to 50% down though
     
  5. Albery's Lawn & Tractor

    Albery's Lawn & Tractor LawnSite Bronze Member
    Posts: 1,674

    50% down or more depending on material cost.
     
  6. richallseasons

    richallseasons LawnSite Senior Member
    Posts: 479

    at least 50% up front
     
  7. AI Inc

    AI Inc LawnSite Fanatic
    Posts: 25,540

    Depends on state law, in Mass one can ask for no more then 1/3 down.
     
  8. Green Finger

    Green Finger LawnSite Senior Member
    Posts: 839


    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.
     
  9. nnj18

    nnj18 LawnSite Silver Member
    Posts: 2,860

    I've been doing 33% up front on anything over $2000
     
  10. AJ Lawnscapes

    AJ Lawnscapes LawnSite Senior Member
    Posts: 322

    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.
     

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