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Joined: Jan 2003
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Mustang,
quote
"ALWAYS GET A DEPOSIT if possible! Just because you haven't been burned only means that you haven't run into the situation that a lot of us see out there."
To ask for a deposit, is just good business practice.
It binds the contract and terms.
It assures any outlay, for material will be covered.
It checks the financil condition of your customer.
And it keeps your cash flow going.
We do not ask GC's for a deposit, however they must have a check ready at the end of each day. This policy came about, from continous losses from dead beat GC's.
GC's with an established credit line, pay weekly.
[This message has been edited by LK (edited 09-19-2004).]
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Joined: Feb 2004
Posts: 494
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Joined: Sep 2004
Posts: 35
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I just want to comment on what someone said above.... You don't get the deposit/expense check to BUY MATERIALS (that's what you have credit at supply houses for), you get it as earnest money or a down-payment. To call it a deposit/expense check is a little misleading in a way, but you get it to CYA in case something happens.
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Joined: Sep 2004
Posts: 138
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e57 is right on. Pool contractors have it much worse though. 2% or $200, whichever is less. You'd be amazed at all of the paperwork you must give to a homeowner. We're almost required to try and talk the homeowner from hiring us.
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Joined: Feb 2004
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roy,
i do not have a clue as to wht you mean. what did e57 say?
mustang
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Joined: Sep 2004
Posts: 138
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Thir from the top Cali law for the last few years, 10%, or $1000, whichever is less, if working directly for a home owner. As a Sub, terms negotiable.....
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Joined: Feb 2004
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ok...yeah where i am now there is no regulation over that.
it seems that california is always regulating something!
i cant wait till they bring on financial liability and financial statements..here in arkansas...over $20K and you have to provide finacial responsibility and then they set the amount you can bid...
1 million is not easy to get..
i don't go any higher than 20K because of that..too much hassle!
-regards
mustang
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Posts: 44
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