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payment terms 30,60,90 days etc


Lee321

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what do you go with for builders?

or are you some what dictated to?

have you reduced terms due to the economic climate

1.to lower damage limitation

or

2.just cus you need it earlier

how do you implement say a 30day agreement? work for 30days then invoive and work/wait another 30before getting a dime?

plz tell more

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I like to see money on completion, with interim payments on larger jobs - all by previous agreement of course. One guy I know insisits on 30% deposit, 30% on start day and rest on completion - something to do with having been seen off previously.

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with everybody its payment on completion

my invoices state immediate payment anything other is credit terms

what am i a charity ???? dont think so.....

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I am VAT registered and most of my invoices are based on 30 days.

Most companies I deal with are 30 days.

However you have to really assess the type of work you are doing and the type of client you are working for.

In the domestic market is is often wise to get at least a deposit to cover materials and labour for first fix, and then amount due on completion.

I am on a large job at the moment where the overall amount has been split into regular interim payments, otherwise the job would almost bankrupt me before completion, and certainly would bankrupt me if the client took time to pay or refused to pay.

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sorry yes i should have stated large scale multi nationals

modest size contracts mostly 6mths+ in duration.

for those not familiar with application invoicing is

monthly you apply for an interim payment close to the percentage

of completed works.

QS are not at the top of the xmas card list headbang

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Large contracts need to be based on interim payments and unfortunatly you may havee to accept retentions in their terms.

My normal commercial customers are 30 days, (carry out work in January,invoice at end of month, get paid end of Feb)

One long standing trusted customer is 60 days.

Domestic jobs on completion.

Favourite builder pays as soon as last accessory is fitted.

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I do as mostly as everyone else, I have changed this year to payment on completion with charges for late payment, have told regulars thats for unknown customers. I keep A5 duplicate invoices in the van for small and daywork jobs again changed to payment upon completion with charges. Larger jobs staged payments agreed between us, dont work for builders that want to pay me when hes been paid.

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sorry yes i should have stated large scale multi nationals

modest size contracts mostly 6mths+ in duration.

for those not familiar with application invoicing is

monthly you apply for an interim payment close to the percentage

of completed works.

QS are not at the top of the xmas card list headbang

I would still be looking for more regular payments - a month of parts and labour can add up to big bills, and no-one likes getting caught out at the end of contracts when the money has run-out due to going over budget. As an incentive I usually discuss a lower labour rate as an incentive to customer to pay-up on a more regular basis ( but not too low)

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