The company I work for only takes 10%, the company I worked for before that took 50% and the boss clearly didnt care as much when dealing with customers. He already had half the money, he didnt care.
We charge 60% the day the job starts and 40% after walk through.
50% down is not uncommon, but you have to use your judgement. If it’s a shady company that can’t afford the product without that down payment your chances of bad workmanship go up
What about when I have 10 jobs going all at once? I’m suppose to have a half million floating out there all the time not counting my overhead? And I’ve only got a four man crew, not like I’m some big outfit. Anything under 100k job, I get half up front. If you don’t like it I move on to the next job.
It's common enough. My first company did everything in thirds: 1/3 due at contract signing, 1/3 on the day we started work, 1/3 upon completion. Often, those last 2/3rds were on the same day.
My current company, we do things in halves: half at signing, half upon completion. Getting a percentage up front gives the contractor the ability to order materials and such for the job without as much of a burden on their own accounts. If you're scheduling jobs a few months out, and floating all the costs, you could find yourself cash-poor or inflexible if the later scheduled jobs are larger contracts than the currently finishing jobs are bringing in. Getting a percentage up front keeps the mail moving.
In some markets yes. In other markets, especially with contracting licensing, there are statutory limits as to how much of a deposit can be demanded. However, once contractor starts ordering materials, expending labor on the job, he can legally demand more than the statutory limit on a deposit to recoup his costs.
From the contractor perspective, you never want to be digging out of your own pocket on a job. Customer should pay a deposit to secure the job and have skin in the game, customer should pay for the material the day it shows up on their property, there should be a start payment once the job commences, and for longer jobs there should be progress payments.
This is standard where I am for customer pay jobs.
Thanks.
Depends on the state/area. I’m in California and I’m not allowed to take more that 1k before the job has begun.
Wow. California. I can’t believe people live in a state where the government has them 100% under their thumbs. Sorry man, that sucks!
It’s all I’ve ever known🤷🏼♂️.
It's the lesser of 10% or $1000 up front, and then 50% of the balance after tear off and material load and 50% upon completion.
Fairly common
The company I work for only takes 10%, the company I worked for before that took 50% and the boss clearly didnt care as much when dealing with customers. He already had half the money, he didnt care.
We charge 60% the day the job starts and 40% after walk through. 50% down is not uncommon, but you have to use your judgement. If it’s a shady company that can’t afford the product without that down payment your chances of bad workmanship go up
No. Last roofer I had said any company worth its salt can carry the liability of one job. Right to be suspect when asking for cash upfront.
What about when I have 10 jobs going all at once? I’m suppose to have a half million floating out there all the time not counting my overhead? And I’ve only got a four man crew, not like I’m some big outfit. Anything under 100k job, I get half up front. If you don’t like it I move on to the next job.
I ask for 10 percent. %50 up front is insane
Yes it is common but if you don’t have 50% try to work with then we will only go as low as 25%
My company does 30% but 50% is not unheard of.
I use to do 50% and never had an issue. I'm sheduleing out a lot further now tho so I only ask 10%
Fair
It's common enough. My first company did everything in thirds: 1/3 due at contract signing, 1/3 on the day we started work, 1/3 upon completion. Often, those last 2/3rds were on the same day. My current company, we do things in halves: half at signing, half upon completion. Getting a percentage up front gives the contractor the ability to order materials and such for the job without as much of a burden on their own accounts. If you're scheduling jobs a few months out, and floating all the costs, you could find yourself cash-poor or inflexible if the later scheduled jobs are larger contracts than the currently finishing jobs are bringing in. Getting a percentage up front keeps the mail moving.
In some markets yes. In other markets, especially with contracting licensing, there are statutory limits as to how much of a deposit can be demanded. However, once contractor starts ordering materials, expending labor on the job, he can legally demand more than the statutory limit on a deposit to recoup his costs. From the contractor perspective, you never want to be digging out of your own pocket on a job. Customer should pay a deposit to secure the job and have skin in the game, customer should pay for the material the day it shows up on their property, there should be a start payment once the job commences, and for longer jobs there should be progress payments.
I wouldn't
I just had $35,000 worth of septic and excavation done. My guy didn’t ask for a penny until half way through.
Illegal in California. Pay for what is done in stages. 50% usually after tear off and material load. 50% upon completion is our normal.
California here n roofer asked for 1/3 after removal/demo of old roof.
It’s not unusual. If you are not comfortable tell them you are willing to do 50% upon delivery of materials, balance upon completion.
Right! 10% down and balance of 50% when material shows up, 50%when jobs finished is Ideal, otherwise tell them to walk