This is definitely a new one for me. I'm doing a prewire, security, automation, surveillance, etc. job for a residential client. I submitted for a draw, and they want either a paid in full invoice or a material waiver signed by my distros. I'm not giving them an invoice, because despite their protestations that they don't care what I paid I feel that's pretty stupid, and I bulk stock material from a ton of vendors so I'm not even sure which one I'd have sign the waiver. I don't use terms for cable anyway, but even if I did I would be paying it with my first draw as there was no deposit. I never signed a document agreeing to this, so I'm considering either telling them to pound sand, or submitting an invoice for excessive back end support time. Thoughts?
Anyone Ever Run Into This? Material Waiver Lower Tier
Is this defined by the contracting requirements up front? It sounds like a bidded or government project.
Including the carrying cost of interest payments on your final invoice may not be allowed per the purchasing agreement.
I don't see that stipulation in the signing documents though, and it isn't a final payment. I'm really kicking myself here. Every time I break my "always get a deposit" rule it comes back to haunt me.
Do you have a prime contractor you're working for, or are you doing the work for the customer directly?
I was actually recruited by the contractor for this one, which is a departure from how we normally do it. Still, it isn't the first contractor we've worked for, nor the first national, so I'm a bit surprised.
So just to be clear, you're appling for progress payments from your contractor, and they are asking for you to negotiate your own distributor payment terms instead of paying you?
You are correct except their doesn't seem to be room for negotiation, they want proof of payment in full. I'm the son of a contractor, so I understand the process, but even then I've never heard of a subcontractor's supplier filing a lien, or even being able to. For example, the lumberyard can file a lien a contractors client, because they deal directly with the contractor. The same goes for the electrician, but NOT for the electrician's supplier.
You are correct except their doesn't seem to be room for negotiation, they want proof of payment in full
and I bulk stock material from a ton of vendors so I'm not even sure which one I'd have sign the waiver.
Maybe you have some paid invoices lying around that you can show them? :)
That's actually what I ended up doing, I just redacted the prices. Still seems silly though.
I've never been asked to do it, but I have heard of it. Either the contractor has been burned before or the homeowner has been doing too much reading on the internet. Lein laws vary greatly from State to State. You really have no choice at this point but to do meet their demands. I would have done the same given the circumstances. You honestly have no idea where some of your materials came from. But they have what they need to protect themselves and you get your funds. At the end of the day, no harm no foul. Just file it away for future use with both of these two.
I'd pass on it. Follow.your gut instinct.
I had an existing customer have me go thru their GC for a new build commercial building, and the GC wanted me to sign two 70 page contracts. I gave them to my father who is a GC and he said dont sign. My gut instinct was to not sign. Well I told the customer I'm not signing it, and he got pissed and said that his alarm company wouldn't sign either. We just do cameras.
In the end, customer had us do it after the contractor was done.
Glad I didn't sign because there were monetary penalties for delays, and sure enough that GC was 2 months behind and could have used my company as a scapegoat.
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