payment up front

[Dandaps]

Just wondering if other firms insist on having some payment up front to start a job, and if so how much ? 50% , 25 % etc

 

[TomP]

I used to use staged payments on reasonable sized stuff then if they didn't pay the first one nothing more got done

 

[Dandaps]

Cheers tom, we use stage payments on new build or something thats progressive, but if a job was to say take a week to put up plus needed a design and quite a bit of travel involved how much would be reasonable to request to start ?

 

[steelcitycowboy]

On new builds 70% erect 30% dismantle get as much money in as possible the reason for this is some new builds can go on for 10 weeks plus and stipulate your payment terms 14 days is more than enough

 

[Tommypaul123]

Say you get a 20 by 40 front and back which is 16sq = 1760+Vat I'd want a 3rd when I start the job a 3rd on completion and a 3rd b4 strike, I used to work a firm in Kilburn about 10 years ago and they put jobs up without getting a thing, must off got knocked a couple times

 

[TomP]

I'd probably go for 40 a 50% plus the cost of the design

 

[steelcitycowboy]

Hence 70% because if they bust the hit of 30% is not such a bitter pill to swallow

 

[StoneScaffoldingLtd]

Only time we ask for money up front is for pavement permits or people from out of town wanting jobs up as we have been stung before by them. Progressive building and new builds we expect payment within 7 days as per our terms of contract. If a design is required then yes defo payment up front for that too. Companycheck is a good thing to use too to see if a company are worthy or not for the money!

 

[Alan Reade]

The norm when charging is 70% upon erection (to cover build cost) 30% on dismantle (to cover strike)
That does not mean the whole 70% is charged after the whole scaffold is built but charged with progress of the build as handed over on monthly basis.

However for small jobs where you may well spend more chasing the debt than the job is worth or perhaps a customer with whom you have no established relationship you could ask for a 30 day PDC (post dated cheque) up front.

 

[Dandaps]

Cheers fellas, just wanted to see how other have done it, I asked for the design to be paid and then 50% on commencement of the works and felt like I had just **** on the floor,
from a regular customer as well.

 

[Binthere]

With all the major companies I have worked for if a new customer did not show reasonable credit worthiness then the full amount would be payable before commencement of erection. This included firms such as SGB, Palmers, S&C, and Bow Scaffolding.
Normal trading terms for established customers would be 70% on erection, 30% on dism - payment within 1 month of invoice.
Obviously large and complex projects would be charged on a monthly interim basis, subject to survey and agreement in line with the order constraints and the legal rights afforded under the 'Local Democracy Economic Development and Construction Act'

As Dandaps shows above though, supply and payment still comes down to what the two parties agree to do, and then do!