Down payments:
I agree with Frodo, I always ask for 50% upfront, if they balk about a downpayment they will probably balk when the bill is due.
As a contractor, its important that you remember that your company is not a Mortgage company, bank or lending institution. I am not in business to lend money, so why should I be expected to start and do a job out of my own pocket ?
Anyone who says that no money should change hands upfront is rediculous! Why should we in the construction business put up money out of our own pockets to get work started on someone elses property ?
Theres and old saying in our business, "Its a wise and prudent contractor who works off the other guys money."
In ten years I have had only one customer say no. Sure I could carry the guy, but why should I if hes late on a payment I lose the 10 days or 2% on my bill that I owe the supplier.
This way at least I know for sure that the material is covered and part of the labor. The idea of carrying a customer sounds great but how many do you want to carry. I am trying to make a living and am not into giving charity.
As Frodo said, I am a small business man and have only one employee, Me.
As far as a contract goes I write a letter of agreement, and spell out in lay-mans terms, I am not a lawyer, as to what work will be performed and said work will be inspected, then I sign it and the customer signs it. It then becomes a legal, binding aggreement. In this aggreement it states that the work will be started after the downpayment is made. This document serves two purposes it assures me that the customer is involved in the job, and understands what is required and also it prevents the customer from saying well you didnt do such and such, and I politely refer him to the agreement he signed and say if such and succh is to be done then there will be a wco involved.
This is how i feel about the matter, and this is my opinion if it differs from anyone it is not meant to offend anyone, its just how I feel and do business.
