What is the industry standard for requesting deposits from the GC or Masonry Contractor on Public Works projects like municipalities, schools, counties & etc. I bid on 70 ft of radiused wall seat cap & 7 8" thick pier caps all in acid washed custom sizes for a local school district. The GC wrote the Masonry contractor back basically telling him that no deposits are ever paid and to find a different precast guy.
A lot of the larger precasters have gone belly up in this fragile economy selling the run of the mill standard sizes of wall cap etc. Are other folks getting deposits to start a job like this?
you can't dictate the terms of payments, deposits, etc but you can dictate whether you want the business or not. After waiting 5 months for a payment (was expecting 60 days), I have not pursued any future business.
Many public work projects here in B.C. require YOU to give THEM a deposit ! Called a performance bond.
Kind of limits what small shops can get into .
If you are working for a sub contractor, then it's business as usual , 50% deposit, balance on completion, although sometimes they insist on a 10% holdback for 30 days.
Were talking public works? The GC is at the mercy of the owner of the project everyone must do their paperwork,It's hard for the GC to pay for things the GC hasn't been paid for by the owner. If you build something in shop, you can be paid for material on hand before it ever leaves your shop it's all paperwork. The GC is paying dearly for the bond which is the guarantee the work will be paid for and completed.
Thanks to all of your for your valuable input. I just received a call from the Mason that was purchasing & installing the seat cap on the above job. Seems as if all of the larger masonry supply houses are really not really in the custom pre-cast business anymore. I suppose that they were having a tough time keeping a custom shop busy in this economic climate. Good sign for us smaller shops. Anyway, he and the GC are going to split the cost of the 50% deposit and have agreed to pay the rest by the 15th of Oct. Thanks again concrete friends. I really enjoy this site and everything that you all bring in to my shop.