CCPC 26 Report post Posted July 11, 2006 For those of you that have done large commercial jobs, do any of you ever collect a percentage up front? I have a large roof job I'm putting a proposal together for, but not sure whether this is something that is commonly done, or whether it is expected that all payments are due upon completion. There will be thousands of dollars in resources that will need to be obtained to do the job, and I would hate to put myself at risk with so much at stake. Share this post Link to post Share on other sites
JFife 14 Report post Posted July 12, 2006 Lance, ...I'd say it depends on the size of the Co. you are working for. A smaller Co. would probably get you a deposit. I had 50K laying out on the table once, and it does nothing good for the ulcers. Honestly, my guess is that you're gonna have to eat the expense upfront. I asked the Contractor if they'd be willing to pay me upfront, the said "no", and it would be two months until I got a check. I told them the bid would be significantly higher due to this, since I'd be accruing debt interest, etc. and they were fine. I think on something 50K i probably bumped it 5K, and I'm glad I did. Share this post Link to post Share on other sites
PressurePros 248 Report post Posted July 12, 2006 Most of the larger companies look at it this way, they aren't going anywhere. They can't pick up their building and run away. But a contractor on the other hand can take a deposit and run. Most will not lay out a dime unless they know you have a solid reputation. It doesn't hurt to ask for a good faith deposit, all they can say is no. Make sure you have everything covered with tight contracts. Ask jeff how he handles this. Share this post Link to post Share on other sites
Don Phelps 85 Report post Posted July 12, 2006 We had a situation where we could've gotten 1/3 up front for a commercial roof job. I was hungry to work for their company and wanted to show them that we could cover it one way or the other, so I laid out the dough and took full payment after completion. As Jon said, it gets a little stressful with that kind of cash out. But I think it makes a statement about someone's company when you show them what you're capable of from a financial standpoint. They then knew I had the financial resources to work on a large scale job. Share this post Link to post Share on other sites
Jeff 232 Report post Posted July 12, 2006 I havent done any 40-50K jobs but on jobs like 30-40 plus condo buildings that are going to last over 2weeks I have gotten a draw after 1/2 the project was complete. The PM offered it so i said yes. If its a large firm or PM company Like Ken said I always worry that I'll get some crazy HOA and its a 10-15K job and something goes wrong and they hold or refuse to pay over some minor BS, Its the risk you have to take sometimes. Good luck on the big job JL Share this post Link to post Share on other sites
Jeff 232 Report post Posted July 12, 2006 Ask jeff how he handles this. I write in proposal/contract I'm not responsible for anything pretty much. I try to think of anything that can go wrong and write it up and say not responsible. I write it all up and I'm surprised I get away with some of it. Like ( Contractor will be using 40 foot lift and may leave impressions on grass/dirt areas, contactor will stamp down any areas as needed but is not responsible for any damage to grass/dirt area caused by lift. Not responsible for any water leaks or damage due to poor or faulty building materials, construction and or maintenance These are a couple examples and I'll write up a lot more than this Sometimes you have to be very exact on how you write certain things up and other things you have to be vague to cover your ass. theres a lot of piece of crap building out there so you have to cover your ass on the large projects. they may hold a check but if your covered in writing it sure would help if you have to go to court. If there a problem which I've had a couple little ones I always try to take care of it JL Share this post Link to post Share on other sites
CCPC 26 Report post Posted July 12, 2006 Thanks for the help guys, but I have to add, I guess my idea of a large job is a little different then some you other guys. I'm talking more in the 12 to 16 thousand range not 40 or 50, but I guess its all relative. It's not so much a problem as related to not having the cash flow, but more so that I wasn't sure whether its common practice or not, and if so, I don't want to miss the opportunity to ask for it. On a side note, anyone know how to covert a word doc. to a pdf file? I want to see about sending my outlined prop/contract to someone for a second opinion. Thanks again for the help. Share this post Link to post Share on other sites
Beth n Rod 1,279 Report post Posted July 12, 2006 If you can't convert it, just restrict the document. Make it read only, with no changes allowed and password protect it. Works like a charm. Beth Share this post Link to post Share on other sites
Russ Spence 76 Report post Posted July 12, 2006 i never have asked for anything up front ,just my pet peave Share this post Link to post Share on other sites
Thad 135 Report post Posted July 12, 2006 On a side note, anyone know how to covert a word doc. to a pdf file? I want to see about sending my outlined prop/contract to someone for a second opinion. Thanks again for the help. Use OpenOffice. It's free and converts with one click. http://www.openoffice.org/ Share this post Link to post Share on other sites
Chappy 138 Report post Posted July 12, 2006 I had 3 contracts last summer totalling $63K usually they pay in 30 days but this took 2.5 months for the last 2 contracts. I knew they werent going anywhere, (school board) but I did sweat a little. I make sure I have enough in the bank to cover expenses before I do the bid. With the exeption of payroll, everything goes on CC. then I can take a little time to pay that up. Share this post Link to post Share on other sites
