What are your payment terms for contracts?

Discussion in 'Hardscaping' started by LB1234, Oct 6, 2007.

  1. LB1234

    LB1234 LawnSite Gold Member
    Messages: 3,208

    I ws reading this thread today: http://www.lawnsite.com/showthread.php?t=202552
    and it got me thinking as to what everyone else does or doesn't do with their contracts and the payment terms.

    Basically, I present the contract to the customer in person have them initial all pages, sign the last, and receive a deposit (usually about 5-10% of the total contract cost). I basically then tell them a starting week. This year we've been running about 6-8 weeks out. One week before the job starts I require another 40-50% of the total contract amount. Then the balance is due upon compeletion of work. Its been working great so far...haven't had any trouble with getting paid from hardscape installs.

    So what do you do? Anyone do multiple payments...say a deposit to lock to the contract, deposit before work starts (cover material), deposit upon job arrival, final payment upon completion of work?

    Just curious....:waving:
  2. AztlanLC

    AztlanLC LawnSite Bronze Member
    Messages: 1,051

    10% to schedule job non refundable
    40% the first day on the job
    20% each following day
    10% left on the table for final inspection and collect with a signing satisfaction form
  3. paponte

    paponte LawnSite Silver Member
    Messages: 2,366

    We require 1/2 down before the job starts, no ifs ands or buts. We require a 1/4 down to hold a start date, and the other 1/4 usually a week or two before the job begins depending on materials needed. On larger projects we will do another 1/4, then a 1/4 final when the job is done. On jobs $20k or less we will do the other 1/2 upon completion.
  4. Natural Impressions

    Natural Impressions LawnSite Member
    Messages: 171

    We usually work on 5-10 percent on refundable deposit....usually no more then $500.00 to hold the date for work. Then 1/3 at start of work ( this usually covers material costs), 1/3 when work is half way done ( which covers labor costs), & the last 1/3 at completion of job. Seems to work the best for us.
  5. Mike33

    Mike33 LawnSite Bronze Member
    Messages: 1,649

    I dont take a deposit to get on my list. Then sometimes i take 1/3 down when i arrive first day with material and equiptment then final upon completion. Many times i dont even take a deposit just do the job and get paid upon completion. I only got burnt 1 time. I think the less deposits you take the more prof. you look that you have the cash flow to work with.
  6. Captains Landscape

    Captains Landscape LawnSite Senior Member
    Messages: 333

    I dont like my money coming out of my pocket for a customer. 50% up front, rest at completion.
  7. Chilehead

    Chilehead LawnSite Bronze Member
    Male, from Stockbridge, GA
    Messages: 1,956

    For maintenance: Payment due on the 1ST of the month for the previous month's work. For Landscaping/hardscapes:75% down, 25% due upon completion(I will NOT pay out -of -pocket for materials. Got burned too many times). For irrigation: 50% down, 50% due upon completion.
  8. LB1234

    LB1234 LawnSite Gold Member
    Messages: 3,208

    I find it intersting that some don't get any money before the start of work. In my opinion, why should I shell out my money for their material? But hey if it works for you great.

    In jersey we have this thing called the NJ Home Improvement Contractor (NJHIC). The state says that any contractor working on any type of home improvement contract greater than $500.00 must be registered with the state. In a nutshell, it says that after the contractor recevies the deposit that the homeowner has three business days to receive a full refund of the deposit after they receive a copy of the contract. I'll take my deposit weeks before the job starts so I don't get burned purchasing materials and them having every right to get 100% of their deposit back.
  9. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Messages: 6,580

    This is my kind of thread!

    Although, I must clean the basement today.

    So I will respond later this evening. I expect everyone to sit on pins and needles awaiting my response!

    - I will share exactly what we do.

    - I will share why we do it

    - And I will share some true stories

    Tune in Later today!
  10. LB1234

    LB1234 LawnSite Gold Member
    Messages: 3,208

    I was actually going to get some stuff done around the house today...how can I do it now??????:laugh:

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