By law, we cannot ask for more than 10% or $1,000.00, whichever is the lessor amount. But, what we do in our contract is spell out definite times and amounts of payment for the rest of the job...For example, Job cost, $12,000.00. $1000.00 deposit taken, balance of $11,000.00 due. Pipe and parts brought on site, $4,000 due. Trenches open, $4,000.00. Trenches closed, system up checked and running, $3,000.00 due. Balance of $1,000.00 due upon completion, we usually do this simultaniously when we show the client his system.
Typically, we do not work more than 3 days without recieving payment for work done to date. If we have not been paid up by the close of the 4th day, we file a 10 day stop order and leave the job until the client gets with the program.
We will do anything any one wants us to, I'll be damned if I allow someone tell me how they intend to pay me...
I like this system for two reasons. It is the fairest for our company, and it is a check and balance system for the client, and very easy to sell them on. People are far less likely to give a job to someone who asks for 50%, or even 33% as they are for one who asks for a small amount until the work begins.
Some do it differently, this how we do...This is how we keep our checkbook balanced and our profit margin high.