Most jobs have a draw off project to be paid as you proceed with project. My guess is the contractor feels he’s more than half finished with his project per the original bid.Originally Posted by IBHUFFY
Most jobs have a draw off project to be paid as you proceed with project. My guess is the contractor feels he’s more than half finished with his project per the original bid.
So the contract price is 11,500 and right now he is asking for a progress payment? How far along is he, is this like a rough in, then come back later and finish? A lot of times if there are going to be 2 billing cycles you front end load the first bill in case things go to crap before you come back. You would be surprised how often the last bill drags out or is never paid in full. How’s the contract read on billing?
According to his figures, he has completed $2,875 worth of the job. According to my Figures just over $2,600. Even if we take his figures he's been paid $6500 and says he wants the $5,000 balance before he continues doing the work.
.
Last edited by KYSkipper; 01-18-2019 at 03:11 PM. Reason: Duplicate
Use his numbers. Pay him the $2,875 now. After he completes the rest of the work you will only owe him $5,000. Seems like a good deal on a $11,500 job.
Chris
2020 Nitro Z19 Pro w/ 200 ProXS
Tell him he forgot to carry the one
If he has been paid 6500.00 already, and only has 2875.00 worth of work complete, he would get the 5k balance when he finished. Send him a notice to proceed or contract will be terminated. Cut your loss and find another contractor that does not need money up front to do the work. That's my .02!
Last edited by Mike198P; 01-18-2019 at 03:41 PM. Reason: Spellin
uhhhhhhhh
Not saying he should be paid in full now, and 11500.00 is a small potatoes contract, but you shouldn’t expect the contractor to front the whole project. What protection does the contractor have if he fronts the job, lawyers mechanics lien, small claims court, all money out of the contractors pocket. Is he a 1/3, 1/2, 2/3 of the way done? Does he have to wait for others to finish before he can finish? All variables that come into play, that we don’t knowIf he has been paid 6500.00 already, and only has 2875.00 worth of work complete, he would get the 5k balance when he finished. Send him a notice to proceed or contract will be terminated. Cut your loss and find another contractor that does not need money up front to do the work. That's my .02!
Last edited by Ky 520c; 01-18-2019 at 04:19 PM. Reason: .
This!! You would need to explain how you came to the conclusion of how much work is worth $2600. I mean if he’s paying his guys $20 per hour, add all the variables, and it’s prob $50 per hour his cost if he’s small and good at pinching penny’s. Common core math is what homeowners use when they try to figure out what something should cost in their head. The real world is a lot different.
This!! You would need to explain how you came to the conclusion of how much work is worth $2600. I mean if he’s paying his guys $20 per hour, add all the variables, and it’s prob $50 per hour his cost if he’s small and good at pinching penny’s. Common core math is what homeowners use when they try to figure out what something should cost in their head. The real world is a lot different.
I don’t believe KYSkipper is a homeowner
Found one of his old math tests from middle school...
He obviously wants the rest of the money because he doesn’t trust your company or I guess he could be a thief, none of us know the whole story.
On an $11k quoted job, I would charge 1/2 to start and then the remainder is due upon completion. Payment is due after a walk thru with the customer and they sign off for completion.
People say don’t ever pay up front, but if you hire a good contractor, it is not an issue. I have to take a chance that you will actually pay me and I am responsible for paying for materials purchased even if you don’t pay, so I usually won’t start for less than 1/2 payment. That way there is no arguments about what part has been done and is due for payment.
If the job is much bigger, then it would be paid on a payment schedule with the final % known on the contract that is signed. The problem people have is not getting it all in writing and having all the figures and payment dates agree’d upon before the job is started.
That contractor has to be one of those Alabama's coaches.
Sorry. I tried to figure this out but it’s hard to tell what’s what. Op you say one thing, later you say something different. Here is what it looks like to me: $11,500 job you have already paid $6500 so you still owe $5000.
Pay him $2850 and you will still owe him $2150 when he gets done.
I guessing the $6500 is materials
Could the 2875 be for labor and the additional be for materials he has already purchased?
Reply With Quote
