Job deposit %

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

  1. the irrigator

    the irrigator LawnSite Member
    Messages: 63

    Deposits on residential work is fairly simple. To my knowledge you can ask for whatever terms you would like. In NYS contract deposits are considered to be "in trust", technically you are supposed to keep the deposit separate from your other accounts but very few contractors do it. If the homeowner signs a contract in their home they have a right to cancel.

    Municipal work there is never a deposit.

    Commercial work rarely do you get a deposit but you can try. Most GC's won't pay a deposit but some Owners might. Progress payments are your best bet on commercial
    work. Make sure the terms are spelled out. Working as a sub-subcontractor is probably the worst scenario.

    If the project is funded by government grant or non-profit then the terms of the grant will most likley spell out the terms.

    Whatever the job try to get payment as work proceeds so you don't have too much out of pocket expense.
  2. Wet_Boots

    Wet_Boots LawnSite Fanatic
    Messages: 50,758

    A lot of municipal bid papers work the deposit in reverse, with the installer making a small payment to cinch the deal. It's just as binding that way.

    Residential contracts usually have a time period for the home owner to pull out of the agreement, as a matter of state law.
  3. Duekster

    Duekster LawnSite Fanatic
    from DFW, TX
    Messages: 7,961

    Bid Bonds and Performance bonds are not so much as a money exchange to seal the deal but they are what they are and often underwritten by an insurance company that has a full investigation of the contractor background and financial. We typically know the contractor will get paid on these types of deals.

    Residential we are not so sure we will get paid
  4. Mike Leary

    Mike Leary LawnSite Fanatic
    Messages: 23,172

    Big time; no one calls to tell you they're pouring hardscape, or sitting around waiting for some other dipwad to get their work done. I finally gave up on commercial installs. Oh, did I mention payments? :hammerhead:
  5. AI Inc

    AI Inc LawnSite Fanatic
    Messages: 27,061

    per Massachusetts law, 1/3 down.
  6. GreenI.A.

    GreenI.A. LawnSite Silver Member
    Messages: 2,131

    there are easy ways around this so long as the proposal and contract is worded right.

    For Residential irrigation we require 50% down at acceptance of proposal. The balance due at completion of the job or as dictated in the contract. For example if we do a late install in December then the balance minus $250 is due at completion and the remaining $250 is due once we seed in the spring.

    Commercial is usually total paid within 30-60 days of completion, as that is what most commercial sites are willing to do around here. You could have a great price but require full payment at completion, and the site manager will pay more to a competitor who is willing to give hem 60 days.

    On new construction when subbed by the GC, we will usually do 30 days from completion unless it is a GC who has a bad record of paying us, then we will require a larger deposit. We have one we work with that we (and most his subs) require full payment before we work.
  7. ToddH

    ToddH LawnSite Silver Member
    Messages: 2,192

    Can not help you with the payments but stipulate the sleeves are by the hardscape contractor.
  8. 1idejim

    1idejim LawnSite Fanatic
    Messages: 11,358

    That dog don't always hunt E.
    Best practice is to designate the location of all sleeves that are installed by others. Stipulate that they are to be physically verified and photographed by the super prior to pouring.

    Another good habit to get into is personaly delivering the sleeves which should be 1 ft. longer than the walk and capped on both ends. Any long runs should be installed by your crew, pull string inside and capped.
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  9. muddywater

    muddywater LawnSite Bronze Member
    Messages: 1,813

    The job we are working on. The site work contractor put 1/2" pipe coming out of the ground at every sleeve with tracer wire running through the sleeves and taped to the 1/2" pipe markers. I was impressed.
  10. 1idejim

    1idejim LawnSite Fanatic
    Messages: 11,358

    good for him.
    Posted via Mobile Device

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