Deposits

[AHPP]

Watched this video.

 

 

The main thing that jumped out at me was the deposit red flags. As a labour only subcontractor (freelance climber) I take 50% or 100% up front, depending on whether client new, especially sketchy, short notice etc. As a principal contractor (owning the job, done for a consumer) I take 0% or 50%, depending on client vibes, expenses like machinery hire, job size etc. Bona fide subcontracting somewhere in the middle of the two approaches, tending towards 50%. 

 

I've worked for people who haven't paid, cancelled at last minute etc so from my perspective deposits are a way of weeding out (or at least partially protecting myself from) bad clients. I'm aware of how it can look desperate or whatever for a little round the corner job though. 

 

So what say we? Perspicacious precaution? The preserve of pikeys? Somewhere in the middle?

 

 

Edited May 11 by AHPP

[Mick Dempsey]

Never taken them, never will.

 

[GarethM]

Obviously depends on the scale of the job, if it's a tens of thousands job.

 

No deposit but a contract with penalties.

[AHPP]

2 hours ago, Mick Dempsey said:

Never taken them, never will.

 

 

Not even when you might have to disburse £2000 of crane hire etc?

[Mick Dempsey]

Never hired a crane. 
If I did, I’d get a signed acceptance of the quote with terms and conditions etc. 
Occasionally I have hired cherry pickers or traffic control. 
I have always just paid it and made the client pay on the invoice. 

edit. 
on reflection in the crane scenario a  grand up front might be a good idea. 

Edited May 11 by Mick Dempsey

[topchippyles]

Get the customer to pay for the crane, this is what i do with self build houses if one is required to lift the roof trusses on. 

[dan blocker]

Never take a deposit even if using hired platforms or cranes. One thing I did ask recently when asked to quote for a job by an existing customer who’s recently been bought out by a USA conglomerate - was - what are the  payment terms now they’re owned by the Americans? Those buggers can expect you to work months before payment😳. Still a week after invoicing so that’s ok.

[AHPP]

2 hours ago, dan blocker said:

One thing I did ask recently when asked to quote for a job by an existing customer who’s recently been bought out by a USA conglomerate - was - what are the  payment terms now they’re owned by the Americans?

 

Interesting turn of phrase. As though it's the natural position for the customer to set payment terms. I've heard people plenty of times saying things like, "We've been put on net 30." like they had no say in the matter and some benevolent corporate overlord has chosen which teat they may suckle. My back goes up abruptly if anyone tries to tell me when they're paying me.

Edited May 11 by AHPP

[GarethM]

The usual one is 30 days with big companies or authorities, which then miraculously changes to 30 business days.

 

Those now attract a fu premium for dealing with them.

[Pete Mctree]

I have taken TM costs and hired in plant cost before when I thought necessary as a deposit 

 

As for payment - 7 days unless agreed beforehand. I have been paid by the NHS, local government and many National firms within the week.