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Installer Payment Terms


MockTurtle
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i suppose it depends from company to company. I ask my clients to cover the cost of their material purchase and have it delivered immediately, and book an install date with them, once installed and switched on, balance of payment please.....i feel it protects both parties, and has worked for me for 19 years....

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An amount up front seems to be the norm. 100% before installation not - and I wouldn't accept it.

Installers are generally small businesses and don't carry a lot of stock (which would tie up their cash), so they request a sum up front to cover the components. Lots of businesses operate in this way. Get a guitar custom built and the maker will ask for AT LEAST a deposit to cover the woods and other components.

But there should be some balance that you pay after installation and after the system is demonstrated to be working.

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depends on the stage of the project.

If a development is still under construction, then I take 10% to start consulting and liaising with the electrician and builder for piping.

80% when its time to start installation.

10% after commissioning, system training with client and 1 week daily on site monitoring of the system.

I only provide sign off certificate after payment is received.

I also provide references of previous installations as well as training certificates, my electrical engineering degree and my teams wiremans license to show legitimacy.

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I paid for the equipment upfront and was delivered a day or two after. The rest of the installation was only paid after the job was complete and COC was issued.

If you do make payment, insist on receiving the equipment, while planning is done for the installation.

 

 

 

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11 hours ago, MockTurtle said:

About to pull the trigger on a solar install - however the installer is basically requesting 50% deposit, and the rest a week before the install date (six week lead time).

Is this the norm? I was thinking at least there should be a balance payable only on completion?

Mine asked for 75%, which they got, but not for the rest before the install.  I wouldn't have used them if they had.

Since it included the paper work for CoCT I am not prepared to pay them the balance until that is complete.  I have been waiting since mid November for the final approval from CoCT and as far as I am aware all the paperwork was present and correct then.

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13 minutes ago, MockTurtle said:

...I'll have to go with another installer if they insist on that.

 

Having been burnt on a non-solar project where the installer ran away with a 50% deposit, I personally would run from someone who wants 100% !

Look for someone else, is my recommendation.

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36 minutes ago, MockTurtle said:

Thanks for the input, I understand material costs have to be covered, orders put in etc, and I'm fine with that. I will try negotiate. What really concerns me is the 100% payment upfront, I'll have to go with another installer if they insist on that.

 

I would be very careful. These fly by nights are all over and we have seen some dodgy installs. 

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  • 2 weeks later...

So, an installer works with a said number of supplier, month in and month out. They probably know each other by name. 

You on the other hand do not know the installer from a bar of soap. Yes you might have connected based on a referral, and have met each other for the consult, but that is it. 

So, his regular business partner do not trust him enough to give him trade terms and a credit limit, why should you by giving him a deposit.

I could never understand this. It’s a pet peeve of mine.

But the I also know you can’t “poep teen donderweer” so I accept to pay for goods upfront, but I pay that supplier and thus at least secure my goods.

 

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perhaps i a wrong here..however.... you walk into a shop, pay for something and leave with it all good, you want to buy something from an installer expect him to pay for it, deliver it , install it then hope he gets paid?  just because you have to wait for the installation to take place does not mean you must not pay for your goods its no different from walking into a shop, just withhold the install component and have the goods delivered. You hold on to them till install. just my thoughts...

you dont think installers are also caught out by unscrupulous home owners...been there friend, after 19 years in the game, i get to read them like a book. You have to understand margins are not that great for installers, so it is not in their interest to get terms and the small guys also have difficulty in getting terms i suppose and to top it, most of the distributors do not offer terms, C.O.D. only.

on my installs i offer my client two options: 1 , pay for your materials and hold the install fee until switch on, and 2.  i use my capital, you pay a higher price and all good. So most people want the lowest price or free as it goes in S.A. but you won't get me to use my capital on your job without a premium..

thats just my 2cents

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