how to protect myself (getting paid) from a large tree clearing job?

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jonny37

ArboristSite Lurker
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Lexington, ky
In the next few days i will be bidding on a tree clearing job...its a new cell tower location. There will be around 200 trees (average 40 feet tall) that need to be dropped and chipped up. The area is less than a football field and the land is relatively level. I have never bid a job like this, as most of our work is one off, residential work. My concern is getting paid. How do you guys bid projects that are around $15-18k and feel safe that you will actually get paid? Ive heard many stories about companies not getting paid doing commercial work. I would like to not sweat being in that group. The company that is in charge of this project is Elite something out of Louisville, Ky. Any thoughts? thanks guys
 
It is a huge game to get large entities to pay. I raised my prices from 25% to 60% in the contract. Then I would offer a discount of 20% if paid in thirty days or less. It can take a large amount of resources to get collected including suing. Ask the rep what the parameters are. I would not hesitate to double the price to allow for a contract not to get paid with in twenty four months. Of course get a deposit and a draw at 50 % completion. Thanks
 
Or, put a compound interest rate, that compounds monthly.
Owed 15k. 10% simple interest, compounded monthly.
Late one month. Owes 16.5k.
Late 2 months, owes 16.5k+ 10% of 16.5k
And so forth. Simple interest compounds 10% of the total owed for each interest cycle.
Bankruptcy would be their escape. Attach the land with mechanics Lein too. Get legal desc. To land, and write it into the contract.
N
 
You may look into invoice factoring to cover your expenses while waiting to get paid. It’s a slippery slope so watch the fees closely. It can help carry the cost of labor while you wait to get paid.


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Or, put a compound interest rate, that compounds monthly.
Owed 15k. 10% simple interest, compounded monthly.
Late one month. Owes 16.5k.
Late 2 months, owes 16.5k+ 10% of 16.5k
And so forth. Simple interest compounds 10% of the total owed for each interest cycle.
Bankruptcy would be their escape. Attach the land with mechanics Lein too. Get legal desc. To land, and write it into the contract.
N
If you go that route, you had better be up on your Federal Debt Collection Procedures Act. One misstep, and it is not only a great LEGAL way for them to get out of paying, but could also find yourself on the wrong side of a criminal investigation...
 
most of the legal notice stuff you need is sent to you every time you get a charge card bill- all that lovely fine print on the back of one of the pages- and most are 30% monthly not to mention a late fee as well like apx $75/mo.
 
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