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10% holdbacks
I’ve been used to them for a while, the main client that does it pays the holdback after 30 days.
Then recently (last 10 years or so) the holdback time has gotten extended, maybe it’s SOP everywhere but the first time it happened I was not amused, and my fault of course since it was in the fine print.
Then the next time it was longer and I waited a year for final payment.
So I learned, this last week I got a payment on one job, was finished almost a year ago.
I bid the job with the holdback in mind and added it into the bid times two.
Came in almost on budget (the one I calculated) and got the holdback times two-I’m not a bank so enough of these and I may get paid back.
I still wonder what happens if the client goes belly up during the year you wait, I can’t see that being a good thing:'(
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5 Replies
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I despise retainage, our materials are woodstakes and rebar or pipe which is no where near 10 percent of billings.
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For our surveys / final as-builts it’s simple, no pay no survey. No pdf. No cad. No copies. You want that C.O. you need to pay 100% drives some big companies nuts but after going through a multiple stage project and having to pull teeth for payments along the way, I’m not about to give them anything at the end until the check is in my hand
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Holdback is SOP for public works projects here. Some prime contractors, and probably some local agencies were increasing holdback periods as you described. Then legislation began passing that set maximum periods for holdbacks. As I recall, there were several similar pieces of legislation that passed over the past several years to address different parties and different methods/reasons/terms used to describe, etc. to close up all the ways some would try to continue the practice.
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eapls2708, post: 355647, member: 589 wrote: Holdback is SOP for public works projects here. Some prime contractors, and probably some local agencies were increasing holdback periods as you described. Then legislation began passing that set maximum periods for holdbacks. As I recall, there were several similar pieces of legislation that passed over the past several years to address different parties and different methods/reasons/terms used to describe, etc. to close up all the ways some would try to continue the practice.
I’m not big into construction for public works projects anymore.
Hold backs are one reason.
But as long as I can get the job with them added on I’m OK with it?.
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I have a client that pays 30days after delivery and they are a great client and have no problem receiving premium work with great appreciation.
I fired a client that wanted that arrangement and complained about premium work.
😉
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