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Unread 01-19-2014, 02:12 PM   #1
joethepro
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Payment

Just wondering how much time other tile contractors allow for getting paid on a completed job. Normally I require 30 days with commercial and residential builders. Home owners I require full payment upon completion.

Got a contractor telling me he'll pay me when he gets paid and he says he pays ever 90 days. Seems like 90 days is too long. Also, what do you think about "pay if paid" clauses?
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Unread 01-19-2014, 02:21 PM   #2
dhagin
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Hi Joe. What are you a pro at?

Maybe add a little more info to your profile so we know what you do, how long you've been at it, that sorta thing. Thanks.

Quote:
Originally Posted by Joe
Also, what do you think about "pay if paid" clauses?
I can answer that one. hahahahahahahahaha. Run away. Fast.
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Unread 01-19-2014, 02:31 PM   #3
tilejoe
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We will not do ANY project over 1000$ without a deposit .

30 days is acceptable for most residential . No idea about commercial.





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Unread 01-19-2014, 02:56 PM   #4
Peerless Tile
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If you get paid when he gets paid....Thats more of a partnership than a contract agreement.....ask to split profits....most standard contracts (here anyway) have us submit by the 20th to GC who submits for payment by 25th to pay us by following 10th...Doesn't always work out but I start rattling cages first Thursday after the 10th to see where the $ is....I figure if I gotta hold up my end of the entire contract they do as well..
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Unread 01-19-2014, 03:12 PM   #5
The Kid
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30 days maximum, no exceptions. At 31 days I start the lein process.
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Unread 01-20-2014, 06:16 AM   #6
Kman
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So he'll pay you "when he gets paid"?

What if that contractor doesn't get paid for six months? Or a year? Or never?

If that's the contract you have with him, then you can't expect to get anything if he doesn't get paid. I guess if I was terribly desperate for work and had nothing else to rely on, it might be better than nothing. But I'd pull out all the stops to find other work.

One local GC paid within 30 days, but held back 10% for a year in case of any callbacks. I never did any work for him.

If I have very little invested in a job, I can usually wait up to 30 days. After that I'm politely asking where I can pick up a check that day. If I have significant money in one, I expect it when I finish, or at least within a few days, no more than a week.
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Unread 01-20-2014, 08:01 AM   #7
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We get paid the moment we are finished. No exceptions.

I'm the tile guy not the banker.
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Unread 01-20-2014, 10:35 AM   #8
Lazarus
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Yep.....!
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Unread 01-20-2014, 11:40 AM   #9
sycamorebob
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1/2 the day i start (anytime that day) second 1/2 when I'm done.
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Unread 01-20-2014, 11:52 AM   #10
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I require a third down to put customer on the schedule UNLESS they are a contractor that I have had a working relationship with for years, then I don't worry about it so much. For homeowners i require the remaining balance as soon as the work is completed. For contractors, with progress payments etc, 15 days after I submit an invoice if I don't have a check in my hand I pick up my tools and move to another project. I've found with all the GC's I do work for after one time of them testing the waters and finding out i'm not kidding I get paid within two weeks of an invoice. When project is completed thirty days is the cut off. Unfortunately the way the world is today, everybody wants you to finance them. I've been fortunate thus far. Gotta cover your own butt.
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Unread 01-20-2014, 02:01 PM   #11
T_Hulse
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You have to work with the standard in your field. If it's retail remodel, then a deposit plus balance immediately on completion is standard. If it's residential new construction then no deposit, net 10th. Commercial, you guys are crazy, lol. It takes cojones to hang that much money out for that long.
Those of you that allow your builders 30 days, you might consider that the standard is net 10th (usually much less than 30 days), and if you don't get him right at the time he is getting his draw based on your work, then you run the risk of him "borrowing" your money to pay a different sub or buy that new Audi.
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Unread 01-20-2014, 03:42 PM   #12
jwmezzanotte
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Im heading toward what Paul said. I dont loan money either. Ill reconsider when I can pay for today's groceries in 30 days.

The ones that I know ahead of time that take 30days or more, my rate goes up.

I give an invoice at completion. Ill send another reminder in two weeks. By 30 days Im adding interest.
Im going to try that for a while this year.

If that doesnt go smooth Im going to start telling my customers ahead of time that I expect 80% before I grout. If I dont get it, the job will stop.

Ive tried the nice guy thing, didnt work. I dont even care anymore whats the norm in my area. I want to be paid when Im done.
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Unread 01-20-2014, 05:39 PM   #13
joethepro
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It looks like within 30 days is the norm. But are we talking commercial or residential, because the 2 are different. Commercial jobs take longer to pay. But 90 days? My experience has been 30 on commercial, not 90..... 90 is way too long.... you're talking a 1/4 of a year!!

This contractor is trying to make me believe the standard time of payment on a commercial job is 90 days. I'm not buying it.

As for the "pay if paid" clause. I heard they passed a law in Arizona that if a GC, builder or home owner doesn't paid a sub within a reasonable amount of time (30 days), then the sub can shut down the job immediately. We need a law like that here in Michigan. The only action a sub can take here is a mechanical lien, and the lien has to be placed within 90 days of completion of the work. The problem with that is, if the GC tells you it takes 90 days to get paid, then the tile contractor is forfeiting his right to place a lien on the property. The tile contractor could place a lien on the property at the start of the job and then take the lien off when he receives full payment at the end. I've done that before.
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Unread 01-20-2014, 06:22 PM   #14
Lump
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Joe, do you do a lot of work for his GC.

Do you expect more work from him?

Do you need his work?
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Unread 01-20-2014, 06:45 PM   #15
Arizona Floors
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Joe,

I don't do much commercial work here in AZ but I have not heard of the law your talking about, I don't think it exists. As far as liens go, I looked into it the other day because a new GC was making me nervous. Here, in AZ, if I don't have a contract directly with the homeowner I cannot put a lien on their property. I would have to duke it out with the GC to get paid. Fortunately the GC paid and I didn't have to learn anymore about the subject.

As far as payments go...
Residential: 25% to get scheduled is typical, balance on completion.
Commercial: 100% 30-180+ days has been my experience. (I hate commercial)

So far I have always been paid, except for that one friend I did a job for a few years ago that still owes me.
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