Forum Discussion

Boxed2Built's avatar
Boxed2Built
Contributor 2
27 days ago

Payment Nightmare: Should Contractors Require a Deposit Before Starting a Job?

I recently had a job where the customer tried to pay in various formats and payment was never able to go through. I ended up leaving and hoping they would pay at a later date. Thankfully they did pay...
accounts receivable
general contracting
getting paid
processing payments
Brand's avatar
Brand
Contributor 4
6 days ago

if material is involved, I always get 50% down on jobs under $15K and a variation of 3 payments if it's more than $15k so you aren't strapped to finish the job before you starve. 

If it's just labor, I get 10-30% down to hold the schedule and commit to their project. Then 40-50% at a certain stage and remainder when complete.