- Yes get a contract, to protect both you and your customer. In some states it's not even legal to work on someones titled property without a work order. - Get a copy of Title, if not in customers name, get a written statement why - Get a copy of their insurance (your insurance company probably requires they carry insurance, check!) - Document clearly what work you will perform - Document clearly what you will charge - Document clearly how invoicing and payments will work - If any specific laws exist in your state (eg: mechanics lean rules) have customer sign of on those - Document that the contract is the only agreement in place. Verbal, implied or handshake deals don't stand up in court - Document any changes to scope/budget in change orders signed by both parties. - Check with your insurance company, they may require a contract, I know mine reviews mine and even asked for some additional language to be included. I've got a contract, it's pretty long, it was written by me and revised by an attorney to be legal, cost a pretty penny to get right. I've had trouble with 2 different customers, different situations, all resolved legally and mostly amicably because we had a clear agreement. One customer couldn't afford to pay anymore; because we did pay upfront and work till retainer spend he was able to pick up his car instead of me having to put a mechanics lean on and selling the car (he wouldn't have been able to pay the last invoice) Second customer; $30k original estimate to get an old hot-rod back on the road (keep frame, engine, interior, steel wheels), customer kept adding work including about $34k in additional parts (frame, engine, interior, wheels). Complained when total invoice went over $30k, resolved with review of contract and change orders. If a customer changes what they want, document the changes and impact on project price.
I'm on the other side of the fence and I'd like to add some things here based on being a customer. Communication is the key to a win-win deal. The builder of the last car I had done sent me email progress reports with photos on a weekly basis. This also allowed me to open a file and compile an "electronic build book". I was invoiced once a month (via e-mail) with a detailed breakout of shop labor, outside work and materials. This is very important as some items were taxable while others weren't. I have had lots of problems with shop owners who did great work, but were sloppy bookkeepers and failed to articulate exactly what something would cost (ballpark). You might consider violating child labor laws and get some computer literate kid who's into cars to take digital photos and set up an email progress program for customers so that you can do the thing that you do best: build cars. PS...no way would I ever do business with a shop that required me to register my car in the shop name!
Amazing to me that anyone would literally sign the title of their vehicle over to any shop for any amount of work. Basically, you no longer own your vehicle. But, it's a good deal for the shop owner for sure. Even if the shop owner is an honest person who will "return title" to the original owner, it's still a bad idea. For instance, what happens if the builder passes away?
I dont understand why some say dont get money up front (they cant afford to be in business.) why should I take my own money and spend it on your car its your car use your money to build it . If the customer cant give you any money up front then your going to have issues down the road. after 20 years in the Business 12 years with my own shop I have never seen any body not get money up front. Do a $50,000 dollor job, dont get any money up front I will bill you later. for $10,000 dollors every month give me a break
I typically get some cash up front, but it isn't for labor...its for parts, and in cases where I have a customer who travels or otherwise doesn't want or isnt' able to source the parts himself. Since I'm going to be a vendor for many of the parts I use commonly, I'll do more of that myself in the future.
As a shop owner I agree with all of the above. Invoice at least every other week with detailed specifications of hours worked, work performed, parts spend all detailed in an emailed invoice with all receipts for external work and parts attached for review. For larger projects (~3+ months) we create a custom website, specifically for the customer, with updates at least several times a week. Shows pictures, videos and updates from the project lead. This way we stay in touch with the customer and give continuous updates, saves us a lot of time because the customer can see progress as it happens and can contact us with any questions, changes or ideas and keeps the customer informed and happy without them visiting the shop all the time, letting us work. Here is an older example of a project website: http://www.hrclassiccars.com/1975_IH_Scout_II/ And this nonsense about signing over the title.. hell no.. Don't want it. Wonder how he deals with inventory tax at the end of the year?
....had a client who spent 15k with me...if i hadn't had up front progress payments on the way through...i woulda got stung...cos it wasn't his $$$ he was spending...yup he went to stay in the big house for a couple years once his boss traced where the money was goin... in short ..you never know when its gona go pear shaped.some folk got stung and others didn't..be careful and keep short accounts i reckon..!!
oh ....on the other hand if you take someones $$$ and don't do the work ...thats just plain theft...IMO
I thought i passed kindergarten... Were you (floydjer) joking all along?? In massachusetss if a title were to go into my name I am responsible IMMEDIATELY for sales tax and title transfer. The sales tax now is 6.25% on the highest book (restored) value of the car! So, I take in a project model A roadster, no money down but title is now in my name... I am now subject to $90 title and say about $1500 in taxes!! thats before I get the priviledge to work on a car thats not really mine?? or maybe the whole smiley thing threw me off....
LOL!!!! I guess we wont be doing any biz together. No way I put my money into a customers car, I learned the hard way thats a good way to get bent over and screwed on your own desk. No,, I didnt get kissed first, and yeah it was a "Friend" that did it. Deposit or no deal,, deposit must cover all parts and materials.
At Performance Marine we had a general service shop and our major job shop, on the major jobs we come up with a idea what the customer wants and needs he signs a work order and pays 50% down. If the customer can not or does not want to pay the 50 down he can take it down the road. At any time there would be 5-20 major jobs at one time and I do not build customers projects all on my dime. Any serious customer dealing with a reputable shop usually has no problem with it. Our biggest problem with a major job is the customer changing his mind after a project started and wanting to change something, some were not happy with the final bill with the changes they requested. I loved the Major work with a great feeling after each project was finished, but at the end of the day every day the general service shop always made more money.... R.I.P Performance Marine
Yeah I think you are right. In most cases owners makes the invoice template by himself/herself and give it to subordinates before assigning any additional work in the subsequent week.
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