Can any tradies, business owners explain this to me please?
" 25% deposit with balance with balance due as a progress claim ( if moving to a new calendar month ) or at job completion " this was on a quote for a $2000 dollar double glazing job. Now , I have no problem with paying a deposit, seems to be the norm now as businesses get ripped off. But a progress payment if moving to a new calendar month?. …. It's not a whole house, just one window. I've never had this on a quote before, have always paid balance on completion. Is there an accounting reason for this or is it just a bit odd?
ianab,
Jul 12, 9:08pm
Sounds like "standard terms". Basically pre-printed on the quote.
If it's one window, and only $2,000 I would expect it to be completed in that month, and invoiced. You pay the bill.
But if they were doing a bigger job with ~50 windows, they might only be 1/2 way though after a month. At that point you part pay for the work done so far, and they carry on and complete the job.
We do computer work, but a large installation could take place over several months. So we invoice as the time and materials are done each month. Same "job", but several payments as the work is done.
krames,
Jul 12, 9:12pm
all quotes have different blurbs/conditions ect . You have 3 options 1.accept the quote 2.decline the quote and go else where 3.D I Y
To answer your question I have never heard of it, maybe it is a new company with not much credit with suppliers and accounts need to be paid using clients deposits to cover a fair % of the material costs.
hound31,
Jul 12, 9:22pm
Thanks for that, explains it clearly. I'd never come across it before, one of two quotes and the other doesn't have anything like that.
hound31,
Jul 12, 9:31pm
Thanks, I do realise I have options, that wasn't what I was asking about. That was one of two quotes I have had so far and the other had nothing like that on it. Have had a fair bit of work done by various firms lately and have never come across this hence my question. They may be a smaller firm than the other, but not new, anyway.thanks for the answer.
budgel,
Jul 13, 11:16am
Yep, its a bit odd. Given that it is for one window, the new month rollover is unlikely to happen anyway.
golfdiver,
Jul 13, 11:27am
Probably pro forma template that they use on all jobs. Just change the numbers. We do similar with quotes. Pretty rare to need progress payments though. Good to be able to use that facility however. Ring them up and ask in a friendly manner.
hound31,
Jul 13, 2:02pm
Thanks, I'm going to email them, as they forgot to include a price in the quote for the broken window that I wanted replaced, and there are a few unanswered questions I have about the installation. Bit different from the other quote as they can do an 18mm gap between the glass which I think is better. i'm kind of leaning towards them because of that, they've been in business twenty years, but the lack of detail on the quote is a bit annoying compared to the other firm. Will ask about the payment nicely:)
stevo2,
Jul 13, 4:42pm
I would check with a glass supplier what size gap is optimal between the 2 sheets of glass. Its a long time ago since I was running an Aluminium Company (Last Century) but there was an optimal gap for insulation properties, too big and this insulation value would decrease. I havent seen terms like you are quoting but I would tell them I will pay the deposit upon ordering and the balance upon job completion. If they agree, amend their copy, sign and return it.
hound31,
Jul 13, 6:07pm
That's interesting thank you. First quote (glass company) said they could only do 4mm as they couldn't rebate(?) too far back into the existing sash. He said optimum was 14mm Second company( which has the payment clause in their quote) has a "patented system" where they replace the whole sash thus giving an 18mm gap I will ring another glass company as you suggest and check thanks I do need to get this done, we had a decent frost this morning and the lower half of the window was frozen inside.
gabbysnana,
Jul 13, 7:08pm
make sure your double glazed window as proper thermal break, because elcheapo double glazing will not eliminate frozen windows.
stevo2,
Jul 13, 7:12pm
I had a feeling the optimum void was around the 12mm mark but unsure as that was 20 years ago
finelawns,
Jul 13, 7:33pm
$2000 could be a lot of cash flow for this company. It’s a lot of money and risk for most people. If this operator has 10 jobs on the go that month that’s $20k of risk maybe he his busy and had $40k at risk. You both obviously don’t know each other so he is keeping his risk low. Iv done this before when a job takes time. I carry all the risk and I get nervous when I’m carrying $40 for a month and $20k from the previous month ask on here how many people have $60 they don’t need and you won’t find many whom do. I have taken 3 weeks off and the bank balance looks good. I wouldn’t stress about it if everything else shapes up. If he is late in getting your job done there’s the warning bell he is using your Money to pay debt and needs the next job to buy your materials. Make sure you watch that carefully.
hound31,
Jul 13, 7:43pm
Thanks, but I wouldn't consider a range of .$1700 to $2000 "el cheapo".
supernova2,
Jul 13, 11:18pm
18mm between the panes on a DGU is going to give you a pretty thick window. 5 + 18 + 5 =28mm. Will you existing joinery actually take a DGU that size?
supernova2,
Jul 13, 11:21pm
It might be if a proper quality job happens to be quoted at $4000. The size of the number gives absolutely no indication of the quality of the final job.
onl_148,
Oct 19, 11:19am
At least you can be grateful that the company has very carefully, right from the "get go", spelt out the payment terms. no surprises etc
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