question for you tradies/ business owners

[VYBerlinaV8]

Interesting discussion. Unfortunately I've had a few bad experiences with tradies, and as such I offer to pay cash on completion, but never give a deposit.

I'm having a pergola built at the moment. Concretors came first, we agreed on cash price for labour plus materials. Team comes for 3 hours, 2 days in a row. 2nd day, get a phone call with the number, guy drops past my work, I hand over envelope with cash. Easy.

Carpenters next. Don't turn up when they say they will. Stuff around, don't have right brackets. Back another day to do some more, and leave rubbish everywhere. No bill.

Painter comes, does great job. Comes back again, 2nd coat. Haven't seen a bill or had a phone call, despite offering cash on completion.

Carpenters ring yesterday to advise they'll be here 7.30am today to finish off. 8.50am and they're not here. No phone call, no bill.

Beats the **** out of me how these tradies run a business. They waste so much time and energy jerking around and driving between jobs and shouting into their phones, and don't seem capable of working out cost and letting me know. And I'm a customer offering cash immediately (ie same day) upon completion.

 

[Hodge]

Nothing worse when trades stuff you around. When I tell a customer I'll be there at 7.30am, I am there exactly 7.30am. I hate being late.

Unfortunately customers don't remember this when it comes time for payment.

 

[D_One]

There is nothing worse than paying a tradie upfront. There are so many dodgy tradies out there that once you pay, they get inferior parts, do inferior jobs and not come back to complete the work or fix up mistakes.

I insist on do the job first, then I pay. Burnt too many times.

 

[Hodge]

There is nothing worse than paying a tradie upfront. There are so many dodgy tradies out there that once you pay, they get inferior parts, do inferior jobs and not come back to complete the work or fix up mistakes.

I insist on do the job first, then I pay. Burnt too many times.

That's fair enough but how do I know once the job is completed you will pay up on time? It's a two way street.

If someone is going to give me a hard time paying a deposit they will give me a hard time paying the balance.

 

[geoffw]

I'm ok paying a deposit up front. For a bigger job, progress payments.

But I made the mistake of paying a builder progress payments ahead of contract scheduled payments for building a granny flat. He then had no motivation to finish on time.

 

[Hodge]

There is nothing worse than paying a tradie upfront. There are so many dodgy tradies out there that once you pay, they get inferior parts, do inferior jobs and not come back to complete the work or fix up mistakes.

I insist on do the job first, then I pay. Burnt too many times.

That's fair enough but how do I know once the job is completed you will pay up on time? It's a two way street.

If someone is going to give me a hard time paying a deposit they will give me a hard time paying the balance.

 

[baby blue eyes]

I know a kitchen business since sold, final payment due day before installation, otherwise installation deferred. Most paid cc. He had very few collection issues.

 

[moyjos]

That's fair enough but how do I know once the job is completed you will pay up on time? It's a two way street.

If someone is going to give me a hard time paying a deposit they will give me a hard time paying the balance.

Absolutely, we have one a number of occasions said "sorry we not interested in doing your job" when they complain about a deposit. On a couple of occasions the customer has rung back and said they will now pay the deposit. Then the deposit goes to 100%

We are not in business to be a bank. The staff need to be paid for making the job, long before we see the final payment.

 

[willair]

Sounds easy doesn't it? Believe me it doesn't work! "Yeah I'll transfer it tonight" bull $*&t!


I'll have to chain myself to the kitchen to get paid same day.

Yes it is,i will tell you a little story from 24 year ago and for the reason I say "You are not a Bank",and the person who first ever said that to me..

I had just finished quite a large 2 level walk-up unit complex just a few days prior to Christmas went in to get the final payment from the builder
the final payment was over 45k,i had paided everyone my workers the suppliers were on 45 days payment everyone,the builder did not want to pay and had me thrown off the building site by the police..

Went to a local Sports Club and started drinking Coopers-Stout by myself trying to work out what to do next after several hours drinking,a small group of very well dressed Men walked in the elder one seeing me drinking
by myself walk over and asked what was the black stuff I was drinking but called me "SIR" first ,never have ever been called "SIR" up till then,all I said was sit down I will buy you one,he sat down asked why I was drinking just prior to Christmas and not with my family,told him the story then he said those magic words,"YOU ARE NOT A BANK"and next time tell them to go to the bank not you,that day changed my life,and the Man that told me those words was Mr BRUNO GROLLO, the founder of Grocon Constructions..
Like I'm telling you now,YOU ARE NOT A BANK,it's better to say no 9 times and risk not getting paided,and say yes once and get paided..

 

[Pa1nter]

I don't mind waiting 30 days for ongoing clients that will give me regular work. It's the "one offs" that bug me the most.

Legally I can only take around 5% deposit. Yeah like I'll be doing that.

Legally you don't have to take a deposit and by asking for a progress payment after you have started lets you get a bigger piece of the pie quicker.

 

[kero]

That's fair enough but how do I know once the job is completed you will pay up on time? It's a two way street.

If someone is going to give me a hard time paying a deposit they will give me a hard time paying the balance.

The tradie knows where you live but not the other way round.

 

[Hodge]

The tradie knows where you live but not the other way round.

Very true but don't have time these days to drive around throwing rocks through windows.

 

[Hodge]

Yes it is,i will tell you a little story from 24 year ago and for the reason I say "You are not a Bank",and the person who first ever said that to me..

I had just finished quite a large 2 level walk-up unit complex just a few days prior to Christmas went in to get the final payment from the builder
the final payment was over 45k,i had paided everyone my workers the suppliers were on 45 days payment everyone,the builder did not want to pay and had me thrown off the building site by the police..

Went to a local Sports Club and started drinking Coopers-Stout by myself trying to work out what to do next after several hours drinking,a small group of very well dressed Men walked in the elder one seeing me drinking
by myself walk over and asked what was the black stuff I was drinking but called me "SIR" first ,never have ever been called "SIR" up till then,all I said was sit down I will buy you one,he sat down asked why I was drinking just prior to Christmas and not with my family,told him the story then he said those magic words,"YOU ARE NOT A BANK"and next time tell them to go to the bank not you,that day changed my life,and the Man that told me those words was Mr BRUNO GROLLO, the founder of Grocon Constructions..
Like I'm telling you now,YOU ARE NOT A BANK,it's better to say no 9 times and risk not getting paided,and say yes once and get paided..

So did you finally get paid and how long did you wait?

 

[Hodge]

I know a kitchen business since sold, final payment due day before installation, otherwise installation deferred. Most paid cc. He had very few collection issues.

Looks like this is the path I'll be taking.

 

[nev]

I know a kitchen business since sold, final payment due day before installation, otherwise installation deferred. Most paid cc. He had very few collection issues.

But how many Jobs can you knock back before you starve

 

[Hodge]

But how many Jobs can you knock back before you starve

How many delayed payments does it take before a company goes bust?

 

[willair]

So did you finally get paid and how long did you wait?

Yes I did maybe 90 cents in the dollar,there was 2 ways the legal path or at the time there was an ex Melbourne-Detective that worked as a private= insurance investigator=fruad=debt= collector in QLD,, who was called the "Doctor" who would make what he called a home visit and explain the different outcomes that were on the table with no
in-betweens..

 

[weg]

But how many Jobs can you knock back before you starve

The reality is people will pay for much of the job beforehand, or as progress payments, if they have already decided they want you to do the job (because of credentials and recommendations).

A reasonable person, both customer and tradie, will understand risk is on both sides, and that the risk needs to be shared.

If you starve it's only because you either aren't a good tradesman or are a newbie tradesman - so no good recommendations, or few recommendations, driving customers to you, let alone customers risking full payment upfront to someone they aren't too sure about.

 

[geoffw]

Is it possible to do as fancy hotels do, to take a credit card impression at commencement of a job as precaution against non payment?

 

[weg]

There is nothing worse than paying a tradie upfront. There are so many dodgy tradies out there that once you pay, they get inferior parts, do inferior jobs and not come back to complete the work or fix up mistakes.

I insist on do the job first, then I pay. Burnt too many times.

I'm wondering why you keep getting burned? This almost never happens to me.

Where do you source tradies from? Obviously not on recommendations or following seeing their work.

Tomorrow I'm having some floorboards polished. I've used this company 4 times previously, the first time being over 20 years ago - sourced them after a couple of recommendations.

I didn't even ask them to quote this time (they offered), because I trust them not to rip me off when they present me with the bill.