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#1

I am wondering how other roofing contractors request their payment for roofing services.

We generally ask for the cost of material at the start of the job, and ask for labor at the end of the job. Its always worked well for us and our customers.

I’ve just recently had a customer tell me that this is a business practice they have never heard of.

Any feedback?


#2

[quote=“Sanya”]I am wondering how other roofing contractors request their payment for roofing services.

We generally ask for the cost of material at the start of the job, and ask for labor at the end of the job. Its always worked well for us and our customers.

I’ve just recently had a customer tell me that this is a business practice they have never heard of.

Any feedback?[/quote]

most ask for 1/2 up front, 1/2 upon completion.


#3

I get 1/3rd on signing, 1/3rd on start and the final at completion.

Some states, like California only allow 10% or $ 1,000.00, deposit and you can not bill for material costs if it is over that amount, even if it is a special custom order.

Check your local governing laws to be sure.

I don’t think I shold have the bulk of my payment outstanding for the end of the job.

I allow a 5% holdback for punchlist completion, if there is any, but there never should be.

Ed


#4

Sometimes (OK once) I got paid 105,000.00 at the beginning of the job and then we went and finished it up. Nice to get paid in advance.

Usually 50/50 but repairwork will most often be 100% billed after we are completed.


#5

1/3 deposit, 1/3 at start and balance on completion.

BTW, I made a new rule for myself, and recommend others to follow this:
When customer tells you the can’t come up with a 1/3 deposit, or the DON’T want to because they are hesitant about you - explain why the 1/3 is necessary and collect it or walk away. From now on, I will. I almost got too close to getting burned by a customer, and i won’t take those chances again.


#6

Those replies are generally lined up with how roofing contractors here in Western Oregon (my location) accept payment.

This particular customer said he expected to not pay anything at all until we had finished his entire roofing job, a complete tear-off and re-roof.

We have always done material at start, labor at end, which pretty much is broken down to 50/50. Not once have I encountered any customer before this one, that says that he has never heard of that before.

I appreciate the replies, it confirmed what I thought. This is a pretty customary way to ensure that bboth the contractor and the customer and getting a fair shake.

Thanks so much!


#7

To Sanya,

Refer this guy to some illegal roofing company (i mean the one that uses illegal immigrant labor, or like the one discussed in “roofing business” section here about illegal roofing co. busted in boston (same day roofing).

This will be a LOT of fun. Imagine they expect a payment, while still install a crappy roof for this guy. He in turn thinks he’s getting a good roof, while does not plan to pay for it. It will benefit “both” of them, but mostly us - honest roofers!!! :roll:


#8

I love LAMetalRoofs’s reply. :smiley:

I usually just ask for it all at the end. Almost never have a contract though. Mostly referral work for me. Highest I’ve done without any contract was about $70K.

Some, even at $1,000., I insist on a contract.