Pay for services rendered.

J

jmeirhofer

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Just curious but what do the repair facilities people use require for payment terms. 100% upfront? Payment as you go? Or something else?

Let me explain a bit. As some may remember I had an engine go out in July. The boat yard that is replacing it has not finished yet, another story in itself but I digress. I paid intial labor charges after the motor was removed, I paid upfront for a new motor, I paid for additional charges for some parts up front. After over 3 months, I still do not have a completed project. Now they are saying I need to pay them more money or they won't do any more work. Needless to say, I am not very happy with these folks. I have never heard of paying for everything upfront before the work would continue. Is that normal practice? I don't much have a choice with finishing this way with these people but want to know for future reference.

I can say I do not intend to give them any more business. In fact I am moving to the other end of the Chesapeake and this is part of the reason. I am normally a patient person with most things but this is just rediculous.
 
John,
In over forty years of boat owership, I have never had that type of relationship on or with a yard. On major projects, have had to put an up front %, another % at mid point and balance at end. Majority of my work has been balance due no cash no splash. Whenever, i have paid a portion up front have always had a written aggrement.

Can't say I blame you on this deal, doesn't sound like they really have a handle on this project. Good luck.

John
 
I have never paid for work in advance. I can see if a substantial outlay of funds is required for purchasing something big like an engine, then paying for that upfront is reasonable. Moreover, I think it is not legal for a legitimate business to charge in advance for services, so you might even consult with persons or agencies about that.

Of course, you don't want to cause any ill will to make the finished work suspect, so when all is said and done, you might consider having your new mechanic look over what was completed to make sure it is good.

At my marina, we have the in-house mechanics, and I put in work orders, they do some initial evaluations (for a fee) and report what else needs to be done. If I give the OK, then they complete the job, and the marina sends me a bill. As a member of the "Captain's Club" there, I also get discounts on parts and labor, so that is incentive to have them continue working on my boat.

Where are you moving to? If you are looking for a marina near Baltimore, I would be happy to tell you about my experiences at Pleasure Cove Marina. Good luck installing your new engine and getting back on the water.

FatPauly
Ellicott City, Maryland
1988 Carver Santego 30
 
That is ridiculous, no way should you have to pay everything up front. Final payment should be contingent on a successful sea-trial. Anything else is setting you up for legal battles if they have not done the job correctly.
 
If I understand correctly you've paid the labor charges for the removal of the old engine, cost of new engine and incedental parts and the boat yard is now asking for more money before they will do any further work.
Are they asking for the full remainder of the total instalment aggreement or just enough to cover their expenses so far?
I've had many jobs done where you pay as you go according to where they are at any particular time but never the full amount in advance of the work being completed and approved.
 
Paul - We are currently in Lottsburg, VA at Olversons (they are not doing the work but did highly recommend the boatyard but so did others) and this experience is partly why we are leaving. We are moving to Lighthouse point in the end of March or beginning of April. Our slip at Overson's is paid until then otherwise I might even move sooner.

I fully understand paying for larger items up front such as the long block we are getting. I just don't understand paying everytime they have a couple thousand worth of parts or labor on a ***teen thousand dollar bill. Hell, I would not even mind paying for just the parts upfront. We have a new long block, turbo, oil coolers, injectors. And misc. other parts. And I likely would not have a problem paying for other stuff if it had not been nearly four months already. My feeling is they had my money so what was the incentive to get it done. Now they want the rest up front to finish.

The whole process has really been a nightmare. You are right, on one hand I don't want to piss them off, but on the other I want to get it done. I could have dis-assembled the entire motor one piece at a time pulled the block and had a new one back in one piece at a time myself by now. I hired it out for a number of reasons, primarily not having the time to do it myself. But as long as it has taken I could have done it myself by now.

They are saying it will be ready in two more weeks. 7th of November, after nearly 4 months. Just in time to winterize it.
 
Thanks for the opines everyone. Experience makes an education I guess. I can tell you in the future, before I move forward on any repair at a boatyard we will have written agreements to terms that are acceptable to me as well as the boat yard or it will be a no go. I am kind of hostage to the situation now (my own fault) so will need to do what they want to get it done. I also will be doing a bit more due dilegence before I even go somewhere to talk about repairs. Live and learn.
 
on a major project the yard should and will explain their payment policy before starting the project, usually on the estimate. It's pretty normal for the yard to ask for installments, especially when major components liek engines need to be purchased. Same if large amount of labor are required but it all should be explained and agreed in advance, especially time frame for the work to be completed.

i think in this case the problem is more with how long it's taking to do the work than the request for partial paymnets.
 
Any project I have had, major or minor, has always been 100% upon completion.
 
Contractors have an almost iron clad mechanics lien on your property once they have touched it.
That is the reason that they may defer charges until the end. They can keep your stuff, or tie up your titles until, well you know when.
Small, or credit strapped companies may not have the capital to front one of these projects, and are using your $$ to keep the doors open. Business is most likely off and cash flow tight.
Watch for any signs of a "going out of town" sale, or activity.
Try to get this all on paper now, along with a time plan.
Good Luck!
 
I always pay when work is completed. Of course its never taken me more than a day or two to get them their money, so they don't worry about it.
 
quote:
Originally posted by wezie

Contractors have an almost iron clad mechanics lien on your property once they have touched it.
That is the reason that they may defer charges until the end. They can keep your stuff, or tie up your titles until, well you know when.
Small, or credit strapped companies may not have the capital to front one of these projects, and are using your $$ to keep the doors open. Business is most likely off and cash flow tight.
Watch for any signs of a "going out of town" sale, or activity.
Try to get this all on paper now, along with a time plan.
Good Luck!

Click to expand...

+1
 
I'm like Philly,,I pay at end and establish a quick payment method, so companies know they will get paid quickly, and this way you also get a little priority when asking for help.
 
You could have built an entire boat from scratch in less than four months.
 
When I had the servicing of the engines and genset done they got it on Monday and I picked it up on Friday. Paid Cash. When they got if for this repair I paid $4k upfront to start the job, and then paid for the new long block and associated parts before they ordered it. First was in cash the second was a certified bank drawn cashiers check sent overnight the day after talking to them. I have established that history of paying right away as I do with everything. So today when they wanted another $4k and that may not be the end of it, I was a bit miffed (still am) that they wanted more money and have yet to produce anything. As Pascal said, I think it is more of a mental issue for me about how long it has taken them. My problem is I am a patient and trusting guy. I do however learn from my mistakes. I may be over a barrel this time but this won't go down this way again.
 
I know Hogan. That is what really pisses me off. I know enough do the job myself but don't have the time to do it anymore unless I just spend a day on the weekends doing it. Well I could have done that and be finished by now and saved about 100 or so hours of labor at $70 and hour. Grant you there are some things like adjusting the rack and such that I just don't have the specialized tools for but the majority I could have done myself and then had a Cat tech come out and do the rest.
 
Yard where we keep our boat asks for payment upon completion of the job.
Unless otherwise agreement has been made in advance, like payment plan.
 
My yard would charge a deposit for the cost of material and the balance on completion. On a really big job they would likely seek progress payments but this would all be spelled out in advance.

No way this should have taken four months. During July and August, guys are walking around complaining about the lack of work. Seems odd.
 
When I repwered my boat last year I supplied the new motor, the yard pulled the old engine, installed the new one, and called me when they were done and gave me the keys. I asked for the bill and they said "we're still working on it, take the boat and be sure all is OK". About a week later I stopped by to settele up, bill still not ready, a few days later they gave me the first and final bill, I wrote a (large)check and we were done. It took them less than 10 days to complete the job. I nevr have had to pay upfront for any work.
 
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