There are Two Bad Payers
In business there are two bad payers – those that don’t pay at all, and those that pay to early.
So, what do I mean by this?
Paying for a service encompasses the notion you are happy with the result. The service provider has done the job and expects to get paid. Unfortunately, there are some people who no matter how good the job is will find an excuse not to pay.
All that hard work and effort for nought. This person is a bad payer!
The second bad payer is when someone pays too early. This occurs when you are so delighted with the work to-date the total amount outstanding is paid before the job is complete.
Surely the person will come back to complete the remaining 2% of the contract.
After all,the job is 98% complete.
Or, you pay the contractor too much up front leading to a discrepancy between what’s completed and what has to be completed. Payments should equal work done.
Unfortunately, some contractors get themselves into trouble then find themselves chasing their own tail. The contractor has to finish your job, but they need the cash flow from the new project to finance your project through to completion.
Surely the contractor won’t leave you without a completed kitchen, minus cabinets for two months.
After all, you have done the right thing and paid on request believing it’s a trust thing-right!
In the first instance it is annoying, however in the second instance it is a very worrying development and it could mean trouble is looming.
People do get themselves into trouble. They have quoted too low in desperation, or they have missed an expensive item in the quote.
Either way it is a situation that is best avoided.
Thankfully, and on most occasions they do come back as promised. However, sometimes they don’t. Or, they take their time and it is only after multiple phone calls do they eventually return.
The point is, having been paid most if not all up front, there is no incentive to return.
Therefore, keep an amount equal to the amount of work required to finish the job.
A tip: Devise a schedule of payments before work starts then pay as each milestone is completed. The more payments the better.