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  1. #1
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    Default getting paid

    Hi every one, im going out on my own this year plastering houses, was just wondering does any one know how long it takes a builder to pay. And would any one have an example of a quote , also can i ask for 30% of jobs worth before start, to either pay for board or to pay hangers. any help would be appreciated.

  2. #2
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    Quote Originally Posted by mickyplaster View Post
    Hi every one, im going out on my own this year plastering houses, was just wondering does any one know how long it takes a builder to pay.Depends on what your contract with him says. Could be up to 30 days from the end of the month And would any one have an example of a quote , also can i ask for 30% of jobs worth before startMaybe from a householder, but not froam a builder.I think there are restrictions on the % you can ask from a householder as well, to either pay for board or to pay hangers.It is not up to the builders or householders to finance the business. You would need to sort out some working capital before you venture out I think any help would be appreciated.
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  3. #3
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    thanks for your answer, much appreciated.

  4. #4
    quality + reliability - 3k Club Member
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    Mickey,

    Do not accept payment 30 days after the end of the month for payment. These payment terms are un-acceptable today in the housing market.

    We do up to 20 houses a month in busy months and we do not have a single builder on 30 day terms.

    Our contractors get paid directly from the builder and we get our material payment from the builder.

    Our contractors claim a progress payment apon hanging the board of about 30% (we stipulate the $ amount in the contract that we prepare on their behalf). This payment is paid within 7 days. The balance is claimed on satisfactory completion, also paid within 7 days but often sooner. If there is out of sequence work to be completed the builder holds back an agreed amount until that work is completed.

    Our materials are paid within 14 days from delivery. We gaurantee satisfactory completion of the works by the contractor provided the builder meets the payment terms and does NOT pay the contractor before he is satisfied with the quality. We handle any disputes (which are very rare) either on behalf of the contractor or the builder. We favor no one in a dispute and call a spade a spade.

    This is a unique way of working but works well for all parties.

    This just shows that you do not have to be dictated to by builders, it is your buisness and you MUST state YOUR terms when quoting. In order to get paid promptly you must give the builder confidence that you will complete the job on time and produce a quality finish. If you dont, for whatever reason the builder will hold back payment until he is satisfied.

    This is not a bad thing except where some builders will do this without justification. If this happens without justification we won't work for that builder again. You don't have to put up with that rubbish, but you must do the right thing ALWAYS, or you will not get paid. If there is justification we fix the problem immediatly with no argument.

    Choose you builders carefully, if they wont meet your terms don't work for them. Likewise if you don't meet their expectations don't expect to get any more work from them.

    I would not expect any builder to pay up front before material is delivered to site, nor would I advise any builder or owner builder to do so. The owner/builder should always have the value of work claimed in their hand before making a payment, be it material or labour.

    If we have doubts about a builder or owner we will insist on payment for material on delivery. If they do not meet this term we dont do the job. I would rather leave it to someone with laxed payment terms to get caught out. Touch wood, we have not had a bad debt in 4 years, yet several builders we have ditched have gone into liquidation after we stopped doing their work.

    You have to define the way you want/need to be paid and stick to it. If they cant/wont meet your terms then look harder for builders that will. There are plenty of builders out there that are looking for competent plasterers, (assuming you will be one of those!). If you are wishy washy with your terms you are asking to be taken advatage of.

    Good Luck with it.

    Cheers Rod
    GREAT PLASTERING TIPS AT


  5. #5
    PLU.MBR.BL.DR. bricks's Avatar
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    what he said.
    If you dont play it, it's not an instrument!

  6. #6
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    To Rod , thanks alot for that answer very helpful and detailed, thats what i presumed how it would be after talking to several plasterers,i reckon it has to be like that now with the cost of living and lets not forget the price of board and sundries forever going up. But our rate never seems to, what i think needs to happen is either a set sq m rate across the board , or you must need a ticket to do such works.that would certainly separate the good from the bad (the roughies) .

  7. #7
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    Quote Originally Posted by Rod Dyson View Post
    Mickey,

    Do not accept payment 30 days after the end of the month for payment. These payment terms are un-acceptable today in the housing market.

    We do up to 20 houses a month in busy months and we do not have a single builder on 30 day terms.

    Our contractors get paid directly from the builder and we get our material payment from the builder.

    Our contractors claim a progress payment apon hanging the board of about 30% (we stipulate the $ amount in the contract that we prepare on their behalf). This payment is paid within 7 days. The balance is claimed on satisfactory completion, also paid within 7 days but often sooner. If there is out of sequence work to be completed the builder holds back an agreed amount until that work is completed.

    Our materials are paid within 14 days from delivery. We gaurantee satisfactory completion of the works by the contractor provided the builder meets the payment terms and does NOT pay the contractor before he is satisfied with the quality. We handle any disputes (which are very rare) either on behalf of the contractor or the builder. We favor no one in a dispute and call a spade a spade.

    This is a unique way of working but works well for all parties.

    This just shows that you do not have to be dictated to by builders, it is your buisness and you MUST state YOUR terms when quoting. In order to get paid promptly you must give the builder confidence that you will complete the job on time and produce a quality finish. If you dont, for whatever reason the builder will hold back payment until he is satisfied.

    This is not a bad thing except where some builders will do this without justification. If this happens without justification we won't work for that builder again. You don't have to put up with that rubbish, but you must do the right thing ALWAYS, or you will not get paid. If there is justification we fix the problem immediatly with no argument.

    Choose you builders carefully, if they wont meet your terms don't work for them. Likewise if you don't meet their expectations don't expect to get any more work from them.

    I would not expect any builder to pay up front before material is delivered to site, nor would I advise any builder or owner builder to do so. The owner/builder should always have the value of work claimed in their hand before making a payment, be it material or labour.

    If we have doubts about a builder or owner we will insist on payment for material on delivery. If they do not meet this term we dont do the job. I would rather leave it to someone with laxed payment terms to get caught out. Touch wood, we have not had a bad debt in 4 years, yet several builders we have ditched have gone into liquidation after we stopped doing their work.

    You have to define the way you want/need to be paid and stick to it. If they cant/wont meet your terms then look harder for builders that will. There are plenty of builders out there that are looking for competent plasterers, (assuming you will be one of those!). If you are wishy washy with your terms you are asking to be taken advatage of.

    Good Luck with it.

    Cheers Rod
    you have an intersting set up rod, it reduces your risk as a suppiler but also reduces the contractors risk of not being paid then the builder has you backing up the plasters work.

    what board have you switch to now BGC is not in VIC anymore.

  8. #8
    Hammer Head - 1K Club Member
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    Quote Originally Posted by mickyplaster View Post
    To Rod , thanks alot for that answer very helpful and detailed, thats what i presumed how it would be after talking to several plasterers,i reckon it has to be like that now with the cost of living and lets not forget the price of board and sundries forever going up. But our rate never seems to, what i think needs to happen is either a set sq m rate across the board , or you must need a ticket to do such works.that would certainly separate the good from the bad (the roughies) .
    i would suggest that read some books on basic business or do a tafe course on running a small business before you start up, a m2 rate does not always apply to every job you need to price every job on what it is, over a gew years you will know how long it takes to do a set task and then a m2 rate can be worked out.

    without knowing your overheads you can not just charging the same as another guy as you dont know what your costs are.

  9. #9
    pest manager bugsy's Avatar
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    Quote Originally Posted by mickyplaster View Post
    was just wondering does any one know how long it takes a builder to pay.

    all i can say is good luck

  10. #10
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    Quote Originally Posted by Rod Dyson View Post
    Mickey,

    There are plenty of builders out there that are looking for competent plasterers,
    Add me to that list, quality is getting harder to find.

  11. #11
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    Quote Originally Posted by Gaza View Post
    you have an intersting set up rod, it reduces your risk as a suppiler but also reduces the contractors risk of not being paid then the builder has you backing up the plasters work.

    what board have you switch to now BGC is not in VIC anymore.

    You are spot on, we spread the margins between us and the contractor and operate this way to reduce the risk for everyone involved. The contactor earns more than the average subbie without the risk of supplying material, Hence we are able to get better quality contractors. We have a one strike and your out policy.

    We now use Boral Board.
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  12. #12
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    Quote Originally Posted by Gaza View Post
    i would suggest that read some books on basic business or do a tafe course on running a small business before you start up, a m2 rate does not always apply to every job you need to price every job on what it is, over a gew years you will know how long it takes to do a set task and then a m2 rate can be worked out.

    without knowing your overheads you can not just charging the same as another guy as you dont know what your costs are.
    Yes Gaza you are right about the m2 rate. We break our price up into every aspect and the price per m2 is whatever it is. This way you apply cost to where they belong and you never under quote or over quote by guessing.



    Cheers Rod
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