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How Do You Charge For Testing?

#1
Just curious how others charge for providing moisture testing services? I usually state net 15 or 30 depending on the job. For long distance testing, I request the fee be paid the day of completion, and guarantee all my test documents will be in their hands within 24 hours.

Have NEVER had a problem collecting until now with a GC whose PO stated terms of net 30. Now, 120 days later, I have not been paid. Problem is, according to the GC, they have not been paid by the customer (a national restaurant chain!!!!! Sad). The flooring contrator is owed about $250,000!!! The total renovation was probably about $6 million!!!

All I can do is turn it over to the local Magistrate. Ugh!

Wonder what they would do if I ate dinner there and gave 'em a copy of my invoice and said "take it out of what you owe me" Big Grin
JK Nixon
Concrete Restoration Services, LLC
Pittsburgh, PA
http://www.rhtester.com
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#2
(01-28-2013, 04:51 PM)CCR Wrote:  Wonder what they would do if I ate dinner there and gave 'em a copy of my invoice and said "take it out of what you owe me" Big Grin

That's a great idea. Bring guests and get them to split the bill, then try and rack it up to whatever the contractor is owed. Make sure you tell the contractor though! Perhaps bring him too... Smile

Wish I could help, but haven't got a track record to boast about yet. It depends on the clientele, doesn't it. In my day job of supplying contractors we give them 30 days after EOM. But then, we are chasing anything up to $60,000 per month.

Presuming that independent testing services is best pitched to the installers, whether a small operator or a flooring group, you'd wanna give them at least 14 days wouldn't you. If they get a record of good payments then give them 30.

The way I see it is that the bigger the group, the more they want you to conform to whatever terms they have with their other suppliers, to keep it in their natural billing cycle. I know I get buggered up when a supplier asks for 14 days, because I only collate my payables every month. But we ALWAYS pay our bills on time... Smile !
The problem with socialism is that you soon run out of other people's money.
- Margaret Thatcher

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#3
My services are usually requestd by everyone BUT the GC. Good thing I guess because around here, they are the slowest to pay. But this one is just ridiculous. As the old saying goes, "Don't write checks your a#! can't cash".
JK Nixon
Concrete Restoration Services, LLC
Pittsburgh, PA
http://www.rhtester.com
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#4
I get companies that also tell me they haven't been paid so they can't pay me.... I ask where the contract says that was going to happen???

I pay my bills on time! Why do I have to wait??

Unfortunately there isn't much you can do except take them to court, or threaten to anyway.... I have one now that is 400 days over due....
JD Grafton
Concrete Answers for Flooring Problems
[email protected]
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#5
Long time, no hear from Smile

Well, i got lucky. The flooring contractor put me in touch with the owner who sent me a check last week Big Grin. My testing invoice was probably less the what the guy carries around in his wallet.

Unfortunately, the GC still owes 25+ subs upwards of $8MM. The flooring was about $350,000 alone!

Still no excuse. However, I was called to another job by a flooring contractor working for the same GC (I found out when I got there). I walked and told them why. Damn that felt good.Cool
JK Nixon
Concrete Restoration Services, LLC
Pittsburgh, PA
http://www.rhtester.com
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#6
Yes, we've been busy!

My old receivables aren't below 6 figures yet... Kind of wish people would keep up.... Sad

Or maybe I could charge interest! Tongue

We have some fantastic contractors we work for that pay regularly, but some that draaaaaggggg their feet.

One CFO was telling me he hadn't been paid by his GC, so he couldn't pay me (I was owed over $20K, 8 months out) and I said, "Why the nerve of that contractor! Does he think you guys are a bank?!?"

He didn't get it. Dodgy He just agreed. I felt like saying I'm not a bank either buddy! I'm a small time player compared to you guys!
JD Grafton
Concrete Answers for Flooring Problems
[email protected]
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#7
Interest???? Ha, that's funny. They'd never pay it. Glad I deal with less zeros than you. I'd never sleep. Luckily all I have to worry about is paying me.
JK Nixon
Concrete Restoration Services, LLC
Pittsburgh, PA
http://www.rhtester.com
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#8
(02-13-2013, 11:37 AM)CC Solutions Wrote:  I get companies that also tell me they haven't been paid so they can't pay me.... I ask where the contract says that was going to happen???

Snap. I get that all the time. Bring on the standard lecture: "If you are buying goods that you can't pay for until the job (on which you are using those goods) pays up....then we can't do business". Seriously, there's something wrong with the picture if they need to work like that.
The problem with socialism is that you soon run out of other people's money.
- Margaret Thatcher

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#9
It's actually illegal to do here in the states, but we really have no recourse except to hire an attorney, set up a lawsuit, spend a lot of money and time getting the thing to court, and then the contractor would pay before it went to court and you'd be blacklisted....
JD Grafton
Concrete Answers for Flooring Problems
[email protected]
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#10
Kinda makes me wonder what makes commercial construction like this - especially when so much is financed and you figure the money is there to pay as they go. Most GCs around here are pretty good about having defined systems in place to pay subs monthly. Problem is the ones who totally ignore the terms and conditions of their own POs. And they laugh it off if you threaten legal action. What a racket!
JK Nixon
Concrete Restoration Services, LLC
Pittsburgh, PA
http://www.rhtester.com
Reply


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