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  • Monthly Contract-when to bill?

    Hi, new here.

    My husband and I have been reading awhile, but this is the first post. We have a painting/pressure cleaning business but have just expanded to a lawn business as well.

    I need to learn more of the "industry standards" for running the office/business side of things.

    We are trying to do only flat rate monthly accounts to keep things simple starting up.
    I know they won't stay simple for long with additional services being added, etc. but I have at least 2 other full time jobs besides this so keeping it simple is important until we get it built up more.

    #1) Can you recommend good sources for a contract? I don't want it to be so specific/wordy that people feel they are signing their life away, but some basics need to be covered.

    #2) When do you bill, for example is September service due September 1 or September 30?

    Thank you!

  • #2
    For my contracts, September payment would be invoiced on the 1st, and due by the 15th. A late charge can incurr on the 20th if need be.

    You'll find there are alot of residentials who don't like to sign a contract for lawn maintenance. I dunno if you're set in stone with the contracts, but you might what to consider also offering maintenance agreements as well (per service basis, but with many of the same conditions as the contract).
    2008, 2009, 2010, 2011, 2012, 2013, 2014 and future 2015 LSF RECEPTED AWARD recipient!

    Hortikulture Kolledge Grad + Licensed Master Irrigator + Certified Backflow Technician +
    Licensed Fert & Squirt Applicator = Jack of all trades, master of none.

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    • #3
      Yes, that is my concern...that residential accounts will not want to sign contracts. Maybe we will use a contract only for commercial accounts at first.
      I think having the monthly rate due on the 15th is a good suggestion...a good compromise between the homeowner's worry that they are paying it all upfront and our worry that we are delivering the service all month without payment. Thanks!

      Is there a good place for me to view a sample contract?

      Comment


      • #4
        Oh, and can you please elaborate more what you mean by a maintenance agreement compared to a contract?

        Right now we have our bid which specifies what is included and the price per month and we have them sign it. It is nice looking and I think that is fine except there are no "terms" to it regarding when payment should be made, etc.

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        • #5
          I basically bill as soon as the first bit of work is done on their property.

          So if I sign a commercial contract this year in December, but we don't start mulching until March 05, 2008, they will get their first even billing invoice on March 01.

          I take the total contract amount and simply divide it by 10.

          But you might be doing 12 in your area.
          a.k.a.---> Erich

          www.avalawnlandscaping.com


          Build a man a fire, he'll be warm for a day.
          Set a man on fire, he'll be warm for the rest of his life.

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          • #6
            I understand your concern w/ performing work that month and not being paid until the following month. But once you get started, it won't really matter. For me anymore, there is always plenty of money in the bank and more just comes in each month. Realistically, you're only waiting one full month without being paid. If working on very little capital will be a problem your first month, shoot to perform a few other services to which you should bill right after completion, such as mulching, landscaping, and the like. Right now is a good time to aerate as well (around here anyhow).

            My maintenance agreements really are a quote with a fancier name. They list prices for services, but at a per service rate. Say like mowing, $35 per. Or prices for the steps in my fert program. It also includes details about these services, like mowing frequency. The back lists conditions, including payment policies and how the customer is expected to keep a lawn clear of obstacles on the day of mowing. Each client must sign this agreement before services are begun. Yes, it's like a contract, but in the fact the client is to be billed only for services rendured.

            My service contracts have one price, with payment divided by 1, 9 or 12 payments.

            If you want a hard copy of these, PM me with an address to mail them to. I'd be glad to send them your way.
            2008, 2009, 2010, 2011, 2012, 2013, 2014 and future 2015 LSF RECEPTED AWARD recipient!

            Hortikulture Kolledge Grad + Licensed Master Irrigator + Certified Backflow Technician +
            Licensed Fert & Squirt Applicator = Jack of all trades, master of none.

            Comment


            • #7
              Invoice Pro @ Sams Around $ 60.00 Uneversal Program . I Bill Monthly Contracts On The 15th Do In 30 Days. I Use Golpher Now Look Them Up On Top Of This Page. Free Trial. And Templets.

              Comment


              • #8
                Thanks

                I really appreciate how friendly is on this board.
                We are using quickbooks so I have invoicing capability...
                just more so wondering what to put on there for the good ole fineprint.

                As for getting paid after the work is performed...I am more worried about non-payers than about working without the capital for one month.

                I ran several daycares in MN before moving here and of course we would occasionally get a bad check, etc but not too often.
                I ran a daycare when I moved down here and wow, whole new world down here. (BTW, down here is FL).
                Even fairly prominent people, even people tied to the daycare in some way (worked for the company the daycare served, etc) would screw us...
                unbelieveable. Has definitely made me a pessimist.


                however for that very same reason, people may be less willing to pay ahead as well...(if I am complaining about the customers down here...you can imagine what kind of contractors they run into as well!)

                I think I will give the 15th a shot as a due date and see how it goes.
                As far as our start up, it is mostly business from existing customers from our housepainting business so that is great because it is people we already have a relationship with and gives me a little bit of breathing room to get things working smoothly and tweak paperwork etc before we enter into the unknowns...

                Take care.

                Comment


                • #9
                  Botb Golper And Invoice Pro Have "clause's " In Them If Thats Whatca Mean.

                  Comment


                  • #10
                    Consideration

                    Originally posted by MASTERMOWER View Post
                    I understand your concern w/ performing work that month and not being paid until the following month. But once you get started, it won't really matter. For me anymore, there is always plenty of money in the bank and more just comes in each month. Realistically, you're only waiting one full month without being paid. If working on very little capital will be a problem your first month, shoot to perform a few other services to which you should bill right after completion, such as mulching, landscaping, and the like. Right now is a good time to aerate as well (around here anyhow).

                    My maintenance agreements really are a quote with a fancier name. They list prices for services, but at a per service rate. Say like mowing, $35 per. Or prices for the steps in my fert program. It also includes details about these services, like mowing frequency. The back lists conditions, including payment policies and how the customer is expected to keep a lawn clear of obstacles on the day of mowing. Each client must sign this agreement before services are begun. Yes, it's like a contract, but in the fact the client is to be billed only for services rendured.

                    My service contracts have one price, with payment divided by 1, 9 or 12 payments.

                    If you want a hard copy of these, PM me with an address to mail them to. I'd be glad to send them your way.
                    I'm new and learning this site. There's a ton of information that helps me get myslef ready to start after the first of the year. I was reading this thread and wanted to know if I could get the same information from you. Your help is appreciated.

                    CJ

                    Comment


                    • #11
                      Bill at the beginning of the month for the coming month. All invoices are due on receipt. Bill the same service amount each month no mater how many days there are in that month so you basically bill for 48 weeks service each year that allows for 4 weeks vacation options

                      Buy Sell or Trade your lawn accounts
                      http://www.tradeyouraccounts.com

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