After doing my monthly follow up on late invoices, I was looking around the internet for best practices on how to get paid (in a timely manner) and found this article put out by the American Institute for Architects and found it had some good ideas. I like the statement in step 3, that you should be working on the clients capital - not your own - throughout the project. Does anybody out there that have any other good ideas that have worked for them?
Typically I insist on a 50% retainer with a signed proposal/work agreement just to get on the schedule. The agreement specifies the balance be paid before the deliverables will be sent. Often, when the survey is completed the client gets an unsigned review and comment version of the plat/map with the final invoice.
Of course that doesn't apply to my ongoing trusted clients, but it's firm policy for all others. Lot surveys and small projects are collect upon arrival to do the work. This has worked well for me, and the only time in 31 years I've been stiffed was 28 years ago by a builder (former) "friend."
BTS, this has worked for me on numerous occasions:
B-)
> Typically I insist on a 50% retainer with a signed proposal/work agreement just to get on the schedule. The agreement specifies the balance be paid before the deliverables will be sent. Often, when the survey is completed the client gets an unsigned review and comment version of the plat/map with the final invoice.
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> Of course that doesn't apply to my ongoing trusted clients, but it's firm policy for all others. Lot surveys and small projects are collect upon arrival to do the work. This has worked well for me,..
Me too.
> > Typically I insist on a 50% retainer with a signed proposal/work agreement just to get on the schedule. The agreement specifies the balance be paid before the deliverables will be sent. Often, when the survey is completed the client gets an unsigned review and comment version of the plat/map with the final invoice.
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> > Of course that doesn't apply to my ongoing trusted clients, but it's firm policy for all others. Lot surveys and small projects are collect upon arrival to do the work. This has worked well for me,..
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> Me too.
Plus two.
I find it quite ironic that this is an AIA document. In my experience Architects have been some of my worst clients in terms of timeliness of payment!
I get a credit card number and info for anyone that isn't a regular client. that's just to get on the schedule. Just asking for the info filters out all the terrible price shoppers and late payers. not to mention it saves tons of office time hunting them down later. When the field work is done, I bill the card, then they can come pick up the maps.
If it's not all up front or at the time of the field survey (for smaller jobs), it's at least 60% retainer as notice to proceed.
Whenever someone gives you a check take it to their bank and cash it immediately.
Are construction liens really a good option?
> BTS, this has worked for me on numerous occasions:
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>> http://www.leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0700-0799/0713/0713PARTIContentsIndex.html
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> B-)
I have never done a lien before and have wondered how effective they are. In Florida, they are only good for a year, before you have to start litigation to foreclose the property. Sounds like it could be expensive on the time spent and legal fees that you are going to have to pay just to collect your fee (I don't think they allow you to recoup legal fees and court costs). And there is no guarantee you will get paid then, especially if you have more senior liens on the property. How big of an outstanding balance would you have to have before it would become worthwhile to pursue?
I usually ask people "Did you know my grandfather was in the mafia?" :-$ B-)
Are construction liens really a good option?
Not sure about Florida but in NC filing the lien paperwork is all it has taken to get paid on several occasions. The paperwork was simple and I ws paid within 10 days both times it came to that.
My standard policy is as others have done. 50% retainer to get on the books and remainder before or at map delivery.
Worst case scenario: stand facing him/her and looking him/her dead in the eyes. In your right hand is your survey. Your left hand is empty. In his/her right hand is a wad of cash. His/her left hand is empty. When he/she fills your left hand with the wad of cash, you then fill his/her left hand with the survey. You both release your right hand grips immediately and walk away.
He/she will not notice that the paper work is blank any faster than you will note that the cash is counterfeit. IF so, repeat procedure above.
Ask Don Corleone to collect for you, ask it in friendship but one day, and that day may never come, he will ask for a service from you.