Ensuring Payment for a Mega Job

[Johnny]

For a job that could exceed four figures in value and could be spread over two or three weeks due to accessibility, other commitments, etc., how do you minimize the risk of non-payment? Up-front deposit and / or incremental payments? Roll the dice? Get Bawb to deal with them?

Much obliged.

 

[tres davis]

Contract for sure and then progress payments

 

[Desk Jockey]

Depends on who it is, large corporations you'll have to wait. Generally 30 days but if concerned ask up front.

There corps I would be concerned about, nursing homes, restaurants, hotels. They can be risky and are often notorious for late or non payment.

Partial payment greatly reduces your risk but most corporations are NOT used to that sort of treatment.

As odd as it is, you can easily require that of residential customers and they will pay it.

 

[Lee Stockwell]

Credit card before you leave.

Justin has some restaurants that he gets cash before he starts.

 

[Bob Pruitt]

It doesn't hurt to ask them to have payment available at job conclusion... usually a Manager type will hold the check until you are finished and he has signed your paperwork. If they can have a deposit ready - they can have the entire payment ready. Our invoices were 10 days net.
I have also made it worthwhile for them to pay at completion by giving financial incentive... save $100 dollars if paid on completion. I build in the $100 into my price. Talking about big jobs like yours.

 

[J Scott W]

Our policy on jobs over $5,000 was 1/3 at the start of the job; 1/3 when the job was 50% complete and 1/3 at the end of the job.
Not to say we got that every time, but that was what we tried for.

Smaller jobs, we got paid at the end of the job for residential. Commercial customers got either two weeks or 30 days.

Getting their credit card information was also helpful.

I was burned a few times, but actually, a bad check or non-payment was more often on a job of a few hundred dollars.

 

[Cleanworks]

I've never been burned by a corporation yet. I usually complete the job and send the invoice in and wait for payment. Although all of our invoices say due on receipt, it takes 2-3 weeks on average to be paid. There is nothing wrong discussing the payment process with a new customer. They probably do it with their clients. I do have some that pay with a corporate credit card.

 

[dealtimeman]

No one like a lien on their property, just make sure you are working for the property owner, if not a little contract with clear terms will be just fine.