you contract guys have got big ******, but im guessing no hair? i would be up all night thinking am i going to get paid, how could you leave 7k? i hope you bump into him on a dark night no cameras
Pros and cons to contract and domestic, I like both for different reasons but would prefer to go the contract way. More detailed to price, more involved but more interesting for me, potentially more money at risk but prefer to get stuck into a job of some size rather than domestic can be a day here and there. If you've got 3 fitters then you can do a decent sized house everyday(carpet). Whereas last year I did a contract carpet job which was 5 guys for 3days a week for 4weeks. You need these jobs to try and grow, if you want to.
I walked away last year from a £16k job, £12k materials. Asking for 50% deposit and he offered me £1500. He said you will get paid 30 days after job. Yeah right. Small time builder with a mouth on him. Glad I didn't do it.
I take a deposit transferred straight into my bank which is instant these days when I turn up with materials. Usually split job into 3 stages 1/3rd paid when I arrive with materials, 1/3rd when I'm half way through and the final payment when their happy with the completed job. Your providing the labour not them, their your customer not employer so you set the payment terms. Yes you'll lose customers but the ones you lose won't pay you anyway or you'll be chasing them and be constantly stressed about getting the money. Running your own business is stressful enough. But I love it
A couple of years ago a builder was put onto me by someone (don't know who) wanting me to fit 12 houses, and what would I charge, Now this builder I had never heard of and he didn't know me, didn't know what sizes the houses were (roughly), so I give him a rough price and telling him that depending on size that I could compete the house in 2days and would require payment on completion of each house. He wanted me to finish all 12 then invoice him and pay in 30 days, oh and he wanted me to supply all the material. I told him I wasn't prepared to do that but if he wanted I would supply the goods but payment on delivery and take labour payment in stages of 2/3 completed houses, he thought I was being difficult. I explained to him firstly I didn't know him and that my terms were normally payment on completion of a each house as often there are gaps of weeks between houses but I was willing the move a bit on that, but all he kept saying was 30 days after site finished on everything. I told him I was willing to negotiate a bit but he was not moving. The upshot was I declined his "kind" offer and politely thanked and praised his negotiation skills. I knew the area the site was in so kept an eye on it 2 and 1/2 houses completed and the site abandoned. Dodged the bullet on that one. Sometimes you just have to stick to your guns and not be bullied into taking a job.
When a major contractor ( Bovis , Laings , Wimpey etc. ) are asked to build a large contract ( Hospital, School, Football Stadium etc.) do you honestly think they would start without a substantial deposit !!! Don't think so !!!! I was having a conversation with a good friend of mine recently who works as a Project Engineer within the food industry. I was telling him about the problems regarding getting deposits for work and he told me the company he worked for had just ordered a new machine for making pizza bases. The manufacturer of the machine wanted a deposit of 1.4 million pounds BEFORE they would even design it !!!! This was 50% , a further 25% to be paid BEFORE a nut and bolt was manufactured , 20 % on completion and the rest ( 5% ) no later then three months after commission !!! So really asking for a deposit isn't exactly unreasonable is it !!
As much as i do agree its not unreasonable to ask for a deposit, in our trade but it seems quite common for people to take on jobs with no deposit. People I've had work from have offered the same terms to me as they do for the other firms they deal with so i take it or i don't get any work and they won't change their policies for me. Someone put me onto a chance to do some work for a large chain of health clubs. The first job was about 12k+vat. There was no deposit and payment was going to be 90 days but that was their terms. I actually got paid after 30 days and I've since down 3 gyms and some work in a hospital and its been about 40k of work. It was a gamble but it just seems common practice they don't pay deposits. I remember uv cure saying he paid for 30k of wood up front.
A firm I used to work for insist on 50% on order and the other 50% before fitters even turn up for new customers, after a few jobs the second payment can move to 30 days and they take it from there depending on their attitudes and profesionalism.
If you don't take a deposit you are loaning materials and Labour taking all the risk with no extra return. Its not logical.
