Getting paid

[Warren]

All of my sawing except for my first job has been at home.  Have never had a contract, but always make sure the customer understands how I am going to charge. Have always got paid. Sometimes a little slow... But always got paid. 

Folks I don't know/trust, pay before the lumber leaves the yard.  Folks I do know/trust, what ever arrangement we work out.  I work away thru the week and saw on the weekends.  When I finish up a customer job, I print an invoice and put it in a sandwich baggie like mentioned above.  Put the baggie under the banding on the top bundle.  Call the customer to let them know their order is ready.   If the customer comes and gets their material thru the week, they have their invoice in hand. The last jag I sawed out for a local farmer, the check came in the mail before I was aware that he had picked up his lumber.

[Magicman]

90%+ of my customers are farmers, and farmers understand how tight money is.  If they don't have the money, they don't have logs sawed.  When they do, I get a call, saw the logs, and get paid.   

[taw6243]

 THIS AGREEMENT, by and between (Sawyer)_________________________________
   and (Customer)__________________________ with the wood-mizer® Sawmill as follows.
1.   Sawyer agrees to cut Customer’s logs into lumber for $60.00 per hour, plus blades, and fuel used. The Customer will provide 1 or more men to remove all slabs and lumber and keep logs moving onto the mill loader arms as needed. The Sawyer mainly just saws lumber. Customer agrees to dispose of all scraps and wood debris resulting from milling operations. It is understood that log handling and cutting may be hazardous. Safety glasses must be worn when working around the mill. Customer shall be responsible for conduct of helpers and observers and agrees to hold Sawyer and Wood-mizer® products harmless for any injury or damage whatsoever to Customer’s helpers or observers arising out of operation of the mill and the handling of logs and lumber. It shall be the Customer’s duty and obligation to keep all children, pets, and observers out of the work area.
2.   In addition to the above, In the event a saw blade is broken/damaged (1 tooth knocked off) beyond the ability to be sharpened, by foreign materials (nails, rocks, metals, etc) in the Customers logs there is a blade charge of $20.00 per blade for the double hard blade  or $66.00 per blade for the satellite blade. If the blade has only become dull from the foreign material then the charge is just for sharpening at $10.00 per double hard blade or $40.00 per blade for the satellite blade. (Stellite blades cut lumber four times as long as doublehard blades) Normal dulling of blades and the decision to change the blade will be determined by the Sawyer and is also charged at the same rates. Payment shall be at the end of each day with payment noted on contract, dated, and initialed by Customer and Sawyer. Note: Sawyer has the right to retain and possess all lumber produced if not paid in full.
3.   Customer represents that that he is the owner of the logs or is the legal representative of the owner, that he has the right to saw on this site, and has the legal right to enter into this agreement on the behalf of all interested parties.

Dated this _____ day of ______________ 20____.

Sawyer: _________________________________.

Customer: _______________________________.

Date__________ Start_________   Stop _________ Minutes_____ Initials __________

Date__________ Start_________   Stop _________ Minutes_____ Initials __________

[Kansas]

I stay away from contracts for a couple of reasons. One has been stated, about scaring customers away. The second one is that that contract is only worth the paper its printed on. That is, if someone doesn't want to pay you, and had no intention in the first place, trying to go after him will likely cost more than its worth. Most custom cutting jobs are  smaller ones. Most people are honest and will pay. If you ran into a bigger job, asked to get paid half way through the job (and make that clear up front.) Also if you put in that contract about you not being liable if he gets hurt offbearing, about all you have done is acknowledge that working around the mill is dangerous, and that will make you liable. If a customer doesn't pass the "smell" test, its better to turn them down than try to get a contract signed and enforced.

We run a heavy amount of receivables. A lot of our regular customers and construction companies from out of the area don't have the ability to pay right then.  Last year was probably the worst in writing off bad debt, and that was well under 1%. Most of our bad debt comes from when someone drops off logs to have cut and dried. That is kind of low on our priority list, and they may be around awhile. A persons financial situation can change in 6 months. If you are just custom sawing, you shouldn't need to run much of any receivables.

[dgdrls]

I believe you must have something in print.  Even if you use a diner style "Guest Check"
Write down what you will do, the cost, final tally and any extra's if there are any.
If you don't get paid, at least you have the receipt and if needed leverage later on.

I'm also a firm believer in a sound business structure LLc, Insurance and a daily work log.

Best DGDrls