Taking a deposit

[southsoundtree]

Who takes a deposit upon signing of the contract for services if there are no materials to be purchased (e.g. cabling supplies, trees to plant)?

(I didn't want to derail the other thread about receiving payment.)

 

[treehumper]

No deposit taken. I think it may be worth it if the job was a big one.

 

[Jamin_Mayer]

I don't. But, I agree with Rob.

I wonder if it would be worth it to tell HOA jobs a deposit is necessary.

Or, working for large corporations... I've got a leaning Cottonwood removal for U-haul and I made it known it would be nice to be paid as soon as the job is done. They are working to make sure it happens, since they normally have a Net 30 system.

 

[Paul Biester]

FOr years i did not!! then i started taking 1/3. I did this in order to gauge peoples committment and it keeps people from grabbing a guy up the street after they signed the contract. It helped that and there was un unforseen benifit,which was cash flow! ! major benefit!

 

[rfwoodvt]

Anything over $5000 total now requires a deposit as does anything commercial over $1000 or requiring purchasing specific material.

In the case of material the deposit is 100% for the material plus <25% of the labor.

The other deposits are highly dependent on the attitude of the customer.

 

[southsoundtree]

Seems like a deposit is useful for cashflow if not expecting to be paid at completion, be it net10, net30, a rental where the property owner is not going to be present, of the HO is out of town.