I've usually just billed after completing small jobs and have only had a few minor problems with collecting - I can only recall three liens and a just a few times of sending more than one 'reminder' in over 20 years.
In the past few months, I have had an unusual (for me) number of slow payers - meaning three bills had to have a second notice.?ÿ It's not a big concern to me as I'll collect, either now or later with interest.
However, it is very annoying that each of the slow payers was VERY communicative when seeing if I was going to get their survey done by the expected time - to the point of wasting my time with responding to them too often.?ÿ One in particular texted me several times to confirm.?ÿ Yet now that the bill is due and they have gotten a second notice, they seem to have forgotten how to communicate.?ÿ Any time I've sent a second notice, those who intend to pay willingly send payment shortly after receiving the second notice.?ÿ Those who don't respond to the second notice at all seem to always be the ones that I have to file a lien on their property.
Meanwhile all the people who were laid back and just accepted that the work would be done when I told them it would be done all paid either before or upon completion of the work.
However, it is very annoying that each of the slow payers was VERY communicative when seeing if I was going to get their survey done by the expected time - to the point of wasting my time with responding to them too often.
Many years ago I went through that too and found the only way to avoid all the collection hassel is to advise them up front that payment is due when the survey is released. ie: no pay, no survey.
Contract with a retainer of 50%. We got tired of financing other peoples projects. The retainer ensures that you at least cover your expenses.
I feel like I've had mostly the same experience with the "very involved" (that's a nice way of saying pain in the butt, overly communicative types) clients. They are more likely to be slow or late paying but are right on the ball about making sure your services are happening to their satisfaction. The late payers seem to go in cycles. I have a small pile of them all at the same time right now.
I get the whole fee paid in advance and have for years. If they are serious they will hire you, the non-payers fade away. Otherwise I work by the hour with a large retainer.
Begin the work promptly and deliver
There is nothing wrong with asking for an up front payment. I recently did some serious reno on my house - all the subs expected much more than 50% up front. Most wanted 100% and would only bill overages.
FWIW, for my web development clients, I typically ask for 50% up front and 50% just before launching their website (or 60 days, whichever comes first). If the final balance isn't paid, website no launchy. In some cases, I might break it down further -- perhaps for larger projects or for clients with a limited budget and trying to get a new business off the ground. 99.999% of the time, no one gripes about the 50% up front and they happily pay the balance before launch.
I like this system because the most I can "lose" is half of a project. And if they drag their feet on any of the steps through the process, in 60 days, I still get the balance or I stop working.
I don't like having these rules, I just wish people would take responsibility to meet their obligations. But alas, 'tis not the way of the world, I guess.
For surveys, we require a contract and full payment up front before the job even gets into our system. Construction layout jobs are net 30, no pay or slow pay, work stops.
The late payers seem to go in cycles. I have a small pile of them all at the same time right now.
When I posted, I was thinking that very thing. But the last time I had a few at a time was around 2007-8.
There is nothing wrong with asking for an up front payment. I recently did some serious reno on my house - all the subs expected much more than 50% up front. Most wanted 100% and would only bill overages.
I agree. But it has occurred so rarely that I am not too concerned about it. I'll collect the fees. I was mainly just venting and musing on the type of client that turns out to be the slow payer. If I were running crews and had payroll already out I would probably think about it differently.
Larger jobs always are paid in stages. Although I'm not too worried about the small ones, I also don't want to let too much money be out and not get paid in a timely manner.
I sublease office space with a friend that does custom home building on our local lake lots. He has complained to me about how much he has out on this job or that job and I have repeatedly told him that he needs to be paid a least a significant chunk ahead of time otherwise he is carrying the note for his clients building supplies - and that eats into his profits. You would think if I don't pay attention to the advice from the folks on this forum, I would at least listen to myself! Apparently that is just not how it is done around here, but I think the builders here should be talking with the construction folks in your area!
I was told by a realtor the other day that they don't know why surveys cost more than 4-500 dollars. I laughed and told him we won't even back the truck up for less than 1500. And he was shocked, and I explained that if you're not going to balk at a 3 percent per side real estate transaction on a million dollar or more property, then why is it so ridiculously asinine to expect a surveyor, who is licensed to help with the definition of that boundary and the surrounding adjacent property and other potential hazards, to take on the liability of that decision and provide reliable legal status for said property, and ask for even less than a real estate @gent who only cares about the money honey....
anyway I went THRACing
you just need these guys....
https://m.youtube.com/watch?v=NO8zb5DG_gM
