Ok I've just priced a nice size commercial job but don't have enough in my trade accounts to cover this even though I have good accounts with good terms. I can't take a deposit as its a large company who are probably 90 days. What do you chaps do ? Walk away ? Or try and earn the money ?
Can`t you take it on with another fitter, split it 50/50 ? Or if you have had your accounts for a while, negotiate new terms ? Or factor it.
I've got good terms with a few trade accounts with good limits that just about covers this but I don't like maxing my accounts out on 1 job as more come along. Didn't think about 50/50 as I know a few fitters. How do you normally deal with your large contracts ? As you must be used to 30/60/90 days.
Yep 90 or even 120 days sometimes. It was tough to begin with, but once its rolling, then the money becomes regular, so it straightens itself out. Have you worked for them before ? or confirmed what there payment terms are ?
I wouldn't do any work without a deposit, especially commercial. If they want you to do the job they will pay it. Are you big enough to take the hit if it happens? And will you pay the other fitters if your knocked?
We did a massive commercial In central London . Way above my limit. Spoke to suppliers and gave them the order. They were happy to sort it out but it was basically if I don't pay in the timescale then big interest would apply.they paid on time... So always good to speak to them first . The The terms was 60 days . Supplier agreed 90.. Happy days
I agree with merit....deposit, too risky this day and age. I am at the moment looking at a large job, well large for me I will be taking a deposit if they want me to do it
It`s very doubtful you would get a deposit, but, you can invoice once you have materials on site. If there credit score is good, and you can agree terms, there is no reason to walk away. How big is the job ?
Don't undertake any work for any contractors that you are not sure of. Especially if their failure to pay you will break you. I have a friend who was doing a lot of work for a contractor who was fitting out a major shoe retailers stores across the country. The contractor went into liquidation leaving him high and dry for several thousand. He had paid out all his staff, expenses and materials and never got any of it back. The contractor had already set up a new company a few months before winding up the first and was back in business the next day. It shouldn't be legal but it is and there are people out there doing it every day. Credit check the company, check the directors history and if there is any suspicious activity don't do it, or at least ask them to explain!
to be honest no I couldn't take the hit I lost 7.5 k last year to a firm going bust and I struggled with that after paying suppliers,labour etc. Problem is I can't see them paying a deposit and I've lost work in the past from asking for deposits. But to be honest on this one materials are coming out at over 16 k cost so that's why i asked the question.
I agree, I don't do massive jobs but quite big and they don't pay a deposit. Depending on time scales, ill invoice as soon as we've done some work to get an interim payment. I would be hesitant to take on a job that potentially is using all your credit with the suppliers. Do you need all the materials at once or can you take them in stages? Also weigh up what you'll make against the impact it would have on your business if you didn't get paid it all.
break the job into manageable phases phase 1 completed - invoice them phase 2 doesn't commence until payment in full for phase 1 etc and so on
