Share:
Notifications
Clear all

Project down payment?

Page 2 / 2
Jim Frame
(@jim-frame)
5,000+ posts Member

I only ask for a retainer when the client is a non-local entity that's unknown to me.  It doesn't happen often.  Everyone else is net 30 days unless otherwise specified in the client's boilerplate contract.  Most commercial entities ignore the net 30 and pay on their own schedule.  I have a couple of repeat commercial clients that run around 6 months; I adjust my fee accordingly in advance.

I had an unusual situation come up recently:  a local engineering firm I've worked with for years needed about $50k worth of new bench marks installed and positioned as part of a groundwater sustainability plan (subsidence monitoring).  We began discussing the project last November, but my client's clients -- two groundwater agencies -- didn't get their desired bench mark locations identified until May 26, and I couldn't do any planning or budgeting until I got those locations.  The funding was a grant coming from the state, and it had a June 30 expiration date (which was actually an extension on the original end date).  I realized that if I was going to meet that date I needed to start work right away, but I didn't have a contract yet -- I had to submit a budget to get a contract, and I had to plan the technical approach in order to develop a budget.  So I did a Hail Mary and just started working.  I was $30k into it before I was actually under contract.  I was very relieved the day that came in.

ReplyQuote
Posted : June 22, 2022 11:00 am
BushAxe
(@bushaxe)
500+ posts Member

It depends on the client. Regular customers no retainer. New and likely non-repeat customer, 50% retainer. The schedule is tied to the payment of my retainer. My clients pay using a Quickbooks payment link sent by me. The balance is due upon delivery for individual land owners, Net 30 for businesses. I have only had a few balk at my retainer…..and that’s what why I have a retainer. 

ReplyQuote
Posted : June 22, 2022 9:53 pm
Gary
 Gary
(@gary_g)
100+ posts Member

The time or two I asked for 50% down they never signed the contract and we were better off for it ! 

ReplyQuote
Posted : June 23, 2022 4:04 am
JPH and Brad Ott liked

Gary
 Gary
(@gary_g)
100+ posts Member

@james-fleming Hmmmmm an aging AR stud!!!!!!!!!!!!!

ReplyQuote
Posted : June 23, 2022 4:04 am
Brad Ott liked
Norman Oklahoma
(@norman-oklahoma)
5,000+ posts Member
Posted by: @gary_g

Hmmmmm an aging AR stud!!!!!!!!!!!!!

Maybe you meant "AR ageing stud"? Or perhaps "ageing AR ageing stud"? 

ReplyQuote
Posted : June 23, 2022 10:02 am
Page 2 / 2
Share: