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Discussion Starter #1
Just curious about how those of you that do new construction and remodels handle payment schedules. How much up front (% wise), at rough inspect and final?

I have heard alot of conflicting #'s. Anywhere from 50% up front 30 at rough completion and the balance at final inspect to 1/3-1/3-1/3.

Just want to know where I should be with this.

Thanks
 

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I have not done new construction in years, but you want to get as much money at the start as you can. I've seen many times where the builder loses money on the house, so they try not to pay any one at the end. Don't be the person who gets screwed out of the money.
 

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Professional Bullshioter
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60% up front for material and mobilization

40% on completion

I have everything on-site to finish at the start of the job. With wildly flucuating prices I have to buy everything to do the job up front.

I'm sure you all remember the year copper went up 238%:eek:
 

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depends

It depends on how big the job is.

For my custom homes I do: underslab first then bill for 37.5%, after 2nd R/I I bill 37.5%, and the end 25% + change orders.

For my commercial jobs I ask for 40% up front and then 30% 1/2 way through the job 30% at 3/4 way through the job and 10% after final + change orders. I had a builder want to do it this way and I kinda liked it. Made it easier to manage $ for me.
 

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I aint CPV see in it?
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Draws are important when it comes to new construction. My numbers are close to what are mentioned above. Bill what you need to be comfortable with the job. Just don't **** yourself.
 

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40% ground work, 40% top out, 10% finish & 10% retention after 30-days.

Mark
 

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Discussion Starter #9
Thank you everyone. I'll be doing the 40-40-20.

The job is a nice five bath gut and replumb with nice expensive fixture$. The only draw back is that 150 year old Farm House dust, you know the stuff that cakes the inside of your nose.

This job is just what the doctor ordered. I was getting concerened that I might have to start working on the Honey do list, but with this I get a temporary reprive.;)
 

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i find that 80% before drywall works. i use the 40% after underslab, 40% after rough and 20% on final keeps me safe. im not the bank and do not like float peoples projects. also the smaller payments of 40% means you get paid alot faster.
 

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Going into the finish

Sometimes they will hold a retention on invoices.20% plus their 10% on the rough invoice is too much for them.

If I'm labor only plus undercounter material 20% on their end is too much.
Too easy for them to get a barstool plumber to set it with my money.Some set their own leaving me ripped as well.

Sometimes the trim and porcelain are on my end.I love it this way.20% is fine.
Also helps me protect myself when they are starting to lag with money on my rough.So many spend their money too large out of the gate.
"You don't get your trim till I get paid for what I've done...Sorry"
Need to have preliminary lien in place,gotta follow through more often on this one.
 

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Discussion Starter #13
Going into the finish

Sometimes they will hold a retention on invoices.20% plus their 10% on the rough invoice is too much for them.

If I'm labor only plus undercounter material 20% on their end is too much.
Too easy for them to get a barstool plumber to set it with my money.Some set their own leaving me ripped as well.

Sometimes the trim and porcelain are on my end.I love it this way.20% is fine.
Also helps me protect myself when they are starting to lag with money on my rough.So many spend their money too large out of the gate.
"You don't get your trim till I get paid for what I've done...Sorry"
Need to have preliminary lien in place,gotta follow through more often on this one.

By preliminary lien do you mean holding fixtures hostage until payment is made? Or is there some legal manuvere I don't know about?

Money doesn't seem to be an issue on this job at this point, but I know how fast that can change.

Thanks
 

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Plumbdog it is a legal manuever. Basically it lets the customer know you are serious and professional and will not be an easy target. It allows you to later lien the property if necessary. We used to do it all the time and CA law actually makes it a requirement, though most contractors don't seem to do it. Don't do it though until the contract is signed because customers do get spooked by the pre-lien if they have not had much contact with contractors. They also cost anywhere from $45 on up so make sure you cover the costs of any liens in your bid.
 

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Illinois Licensed Plumber
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I have a question. I have been doing service work forever. Every so often I get a home owner asking me for a Release of Lien before they are willing to pay me. The way I normally handled it was I give them the Release of Lien when they hand me full payment. But I had a few others that wanted it before I even started the job.

So here is my question what is the Release of Lien for and what is the proper way to handle it?
 

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IMHO, the lien release will clear once final pmt is cleared.

I have a question. I have been doing service work forever. Every so often I get a home owner asking me for a Release of Lien before they are willing to pay me. The way I normally handled it was I give them the Release of Lien when they hand me full payment. But I had a few others that wanted it before I even started the job.

So here is my question what is the Release of Lien for and what is the proper way to handle it?
 
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