BoesTreeService
ArboristSite Member
I would like some feedback on what kind of deposits some of you more experienced owners are charging for your commercial and or lot clearing jobs - is there some sort of "industry standard"?
Deposits on Commercial Jobs
- Thread starter BoesTreeService
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treesquirrel
ArboristSite Guru
Milestone payments
I do what I refer to as milestone payments on big stuff.
Lets say a group of large trees in a back yard competely removed.
Milestone A would be after limbing and topping out,
Milestone B would be after chipping all debris and hauling off chips to the compost,
Milestone C would be dropping the trunks and hauling off,
Last but not least, D would be stump grinding and final site cleanup.
Each milestoine in this example would be a 25% payment.
I personally do not ask for any money up front. I will always post a milestone before requesting any payemnt. I just think it is good policy. Also, many customers are leary of money up front operations and you may lose the job due to consumer paranoia.
I do what I refer to as milestone payments on big stuff.
Lets say a group of large trees in a back yard competely removed.
Milestone A would be after limbing and topping out,
Milestone B would be after chipping all debris and hauling off chips to the compost,
Milestone C would be dropping the trunks and hauling off,
Last but not least, D would be stump grinding and final site cleanup.
Each milestoine in this example would be a 25% payment.
I personally do not ask for any money up front. I will always post a milestone before requesting any payemnt. I just think it is good policy. Also, many customers are leary of money up front operations and you may lose the job due to consumer paranoia.
lawson's tree s
ArboristSite Operative
i usually try to get half down on any job that is over 2,000 just to cover fuel help etc .
We sign at 20% on jobs over $5,000. Anything under that is no deposit. Rest due upon completion no later than 60 days. After 60 days there is 5% every 30 days late.
We do make exceptions to this as some corp's policy is set in stone and we work them based on their pay period policy. The initial deposit does not however change.
We do make exceptions to this as some corp's policy is set in stone and we work them based on their pay period policy. The initial deposit does not however change.
ASD
Addicted to ArboristSite
the law in ca. it's 10% or $1000 witch ever is less . but on large jobs (over 10k) we will charge a move in fee 
John Paul Sanborn
Above average climber
Ernest money can secure a job, but in many juristdictions you can be taken to court for tripple damages if you fail to deliver on time.
Aside from that, it is good buisness to show urgency when taking money up front.
If you do not have any material cost in the project, and just want to secure it then a token sum is all that is needed,
I prefer the scheduled payment for services rendered mantioned above. Due on completion, not 30-90 days later. Small companies often do not have the working capitol to pay crews for several weeks.
Having it worked into the contract will allow you to hold off continuing/completeing the project if payments are not made in a timely manner.
I know one guy who got a cease and desist order when another company was hired to finnish a clearing job. He was able to show he had held to the contract and had not been paid according to the terms of the contract.
Aside from that, it is good buisness to show urgency when taking money up front.
If you do not have any material cost in the project, and just want to secure it then a token sum is all that is needed,
I prefer the scheduled payment for services rendered mantioned above. Due on completion, not 30-90 days later. Small companies often do not have the working capitol to pay crews for several weeks.
Having it worked into the contract will allow you to hold off continuing/completeing the project if payments are not made in a timely manner.
I know one guy who got a cease and desist order when another company was hired to finnish a clearing job. He was able to show he had held to the contract and had not been paid according to the terms of the contract.
