I only ask for a retainer when the client is a non-local entity that's unknown to me.?ÿ It doesn't happen often.?ÿ Everyone else is net 30 days unless otherwise specified in the client's boilerplate contract.?ÿ Most commercial entities ignore the net 30 and pay on their own schedule.?ÿ I have a couple of repeat commercial clients that run around 6 months; I adjust my fee accordingly in advance.
I had an unusual situation come up recently:?ÿ a local engineering firm I've worked with for years needed about $50k worth of new bench marks installed and positioned as part of a groundwater sustainability plan (subsidence monitoring).?ÿ We began discussing the project last November, but my client's clients -- two groundwater agencies -- didn't get their desired bench mark locations identified until May 26, and I couldn't do any planning or budgeting until I got those locations.?ÿ The funding was a grant coming from the state, and it had a June 30 expiration date (which was actually an extension on the original end date).?ÿ I realized that if I was going to meet that date I needed to start work right away, but I didn't have a contract yet -- I had to submit a budget to get a contract, and I had to plan the technical approach in order to develop a budget.?ÿ So I did a Hail Mary and just started working.?ÿ I was $30k into it before I was actually under contract.?ÿ I was very relieved the day that came in.
It depends on the client. Regular customers no retainer. New and likely non-repeat customer, 50% retainer. The schedule is tied to the payment of my retainer. My clients pay using a Quickbooks payment link sent by me. The balance is due upon delivery for individual land owners, Net 30 for businesses. I have only had a few balk at my retainer??..and that??s what why I have a retainer.?ÿ
The time or two I asked for 50% down they never signed the contract and we were better off for it !?ÿ
Hmmmmm an aging AR stud!!!!!!!!!!!!!
Maybe you meant "AR ageing stud"? Or perhaps "ageing AR ageing stud"??ÿ
As I do both town planning work and surveying (where the town planning horizon is about 12 months to get an approval to a minor subdivision, if you're lucky, particularly in small municipalities), I always require 45% on appointment, 45% on submission to the local authority, and the remainder once the local authority approval comes through.
When it's solely survey work, and unless its a really bad client, no deposit/retainer.
When I used to do private work I would ask for 50% on one off clients. Never had a problem collecting the rest. Also did sub work, didn??t like it, took too long to get paid. In 2008 they stopped calling me and I stopped calling them, don??t miss it.
New clients without a previous work history with us are required to provide a retainer equal to:
? the total value of services provided by our geomatics department, if the total value of services provided is less than $2,500; or
? $2,500, if the total value of services provided by the geomatics department is between $2,500 and $5,000; or
? 50% of the total value of services provided by the geomatics department to an upset limit of $5,000 if the total value of services provided exceeds $5,500 prior to commencing any work. If payment made via cheque is returned due to insufficient funds, work will stop immediately until payment is received.
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The client is in a hurry??ÿ Me, too.?ÿ My pace to the site is directly correlated to you paying the deposit.?ÿ Once things are done, they get released when the bill is paid.
We used to when we had new private clients.?ÿ It created quite a headache for our accounting department.?ÿ ?ÿNow, we only do private work for people we know and trust.?ÿ Needless to say we do very little private work.
