Stage payments, asking for percentage up front, good idea or not?

[robd]

Evening all, As above really. Quoting for one of my 1st bigger jobs on my own, thinking about asking for 30% up front then 35% on completion of 1st fix and same again on 2nd fix.

Advisable or not? Don't want to seem like a cowboy but at the same time materials cost in region of £800, any thoughts gratefully received.

Thanks

 

[Octopus]

and certs provided on receipt of final payment!

 

[RyanCheetham]

Nothing wrong with it as long as you both sign a copy of a receipt/contract of some kind at each payment time. I usually include the balance on the signed paperwork and the terms and conditions of payments on all invoices, quotes, deposit and interim payment paperwork. No excuses then

 

[GMES]

As above really and sometimes customers like it that way so they don't get a large bill at the end of job

 

[Welchyboy1]

I personally wont take money up front for jobs although most companies do, how about a 50% draw at the completion of the first fix or somethingsimilar?

at least the customer will see he has got something for his money so far and is happy with your work,

for an upfront deposit it may put him off choosing you for the job?

 

[SPARTYKUS]

I personally wont take money up front for jobs although most companies do, how about a 50% draw at the completion of the first fix or somethingsimilar?

at least the customer will see he has got something for his money so far and is happy with your work,

for an upfront deposit it may put him off choosing you for the job?

Tends to be how I do it, 50% e o first fix, balance on completion.


at end of day if theyre a good customer they'll pay whatever you agree, conversely the other way!!!

 

[Marvo]

We often take an up-front deposit and if the client is uncomfortable we deliver materials to site in advance as a type of security so they have something in their possession to warrant them paying the deposit amount.

 

[sythai]

Has always worked for me like this for last 3 years without any issues:

Job over £500, then 30% deposit up front/ 35% first fix/ 35% second fix.

Job 12weeks duration or more then monthly payments based on amount of works complete.

Regular contracts/ no deposit/ 50% payment on first fix completion/ 50% payment on completion.

Cash flow is essential for me being a small business.
So much so I've recently amended my payment terms from payment with 7 days down to payment on presentation of invoice (this doesn't apply to regular contracts though.)

Cheers Sy