ECN Forum Forums General Topics of the Trade General Discussion Area Deposits on large Jobs

Fredmeister,
Sorry about the <threadjack>

sparky66wv,
Good to hear from you again. Even if you close your business, keep that internet line hooked up. We miss your comments and insight here. Hopefully everything will work out for you. Keep your chin up. But duck when neccessary!!

Donnie

Team up with a good national supply, they will have a rep meet with you and set up just in time or on time delivery for some of the material, if you meet with the supplier first, and have everything scheduled along with proper contract language for delays then the supplier and bank will usually work with you. It takes a little planning upfront to make it work but, Rodger said it best.

If the GC or Owner does not want to pay a down payment or place the money in an escrow account, I tell them to call in the next higher bidder. I also tell them that I am NOT thier bank.
I always account for thier deposit in monthly statements.
I have seen too many of these thieves who use the AIA system to delay and try for months to deny payment for any specious reason they can dream up. One GC told me seven time that they did not have a copy of my insurance, after having signed for it twice by registered mail.
If they do not pay on time, you do not need them.

Here in CA, storage requires the use of a bonded warehouse.
Our State laws prohibit the collection of more than $1000, or 10% of the contract total (whichever is the lesser) from the owner on any residential project before the commencement of work.
The GC has to get their money from the owner, and they aren't there to bankroll your job, either.
Setting up your progress payments (as Roger says) is the easiest way to get money soon.
By the same token as the EC not biting off more than they can chew, neither should the supplier. If they want to "middleman" and get their $%, they should be able to bear their share of the burden also.

Virgil, DON'T shut it down. Good to hear from you! Hope alls OK...S

Fredmiester,
I'd go along with LK on this one,
For the majority of Large contracts that I have been involved with, the Progress Payment system is the one that I am most used to, it is a "Standard" here in NZ.