Job deposit %

Discussion in 'Irrigation' started by greenmonster304, Sep 18, 2012.

  1. Mike Leary

    Mike Leary LawnSite Fanatic
    Posts: 21,903

    The drawback to taking money out-front is you think it's yours, before you even spud-in. I've seen many contractors go tits because they got so far behind that the deposit was used to pay last month's bills. Once you lose your bond, you'll be flipping burgers.
     
  2. muddywater

    muddywater LawnSite Bronze Member
    Posts: 1,813

    I never take a deposit. I don't feel comfortable holding other people's money, and I tell the client they pay upon completion when they are 100% satisfied.

    We are working on a 100k+ job now and there is no draws, job should take 30 days, and probably another 30 days to pay. I am just glad to have the work, I would rather have a project and my money out on materials than in the bank making less than 1%.

    I have had a bond company pay me when a general contractor defaulted. It took a year, but they paid the bill in full and the lawyer fees. And it was for a new church building... go figure.
     
  3. muddywater

    muddywater LawnSite Bronze Member
    Posts: 1,813

    actually good for me! On the last job those fading paint marks on the curb weren't so accurate.
     
  4. Oxmow

    Oxmow LawnSite Senior Member
    Posts: 391

    50% down on residential, Draws when we can on commercial, but usually its not until 30 days past completion due to us being the last sub on site.
    I've run into GC's telling me we have to wait until they get their final payment from the owner because of being the last sub to turn in a pay request.
     
  5. 1idejim

    1idejim LawnSite Fanatic
    Posts: 9,316

    You too but he set the bar for his peers and you gained valueable insight for working with other hardscapers including your own men.
    Posted via Mobile Device
     
  6. Kiril

    Kiril LawnSite Fanatic
    Posts: 18,308

    Nail hit on head. :waving:
     
  7. lawns Etc

    lawns Etc LawnSite Silver Member
    Posts: 2,272

    Anything over $1000 I require 50% prior to start and remainder upon completion. Used to get 100% upon completion but a few bad apples ruined that for everyone!
     

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