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Old January 13th, 2007   #21 (permalink)
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Default Re: Clients Not Paying

We ask for either 33 or 50% depending upon the size of the project and how well we know them. If they aren't willing to pay at least 33%, then they aren't worth the risk.

Suggest checking out the client as much as possible before you hand them a contract - and have a contract!
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Old January 14th, 2007   #22 (permalink)
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Default Re: Clients Not Paying

Quote:
Originally Posted by Maxer View Post
why is it that Architects and developers think that it’s ok if they take 6 months to pay someone for work that basically sells their projects.
because that is the time when Architects get paid from developers. Only then will they have money to pay you.
for developers, more time their money nested in the bank, more interest for them. delaying makes more money. easy to understand.

usually hassling the client over the phone is the best first step. just annoy them as they annoy you. unless the company is bankrupt they will pay once hassled enough.
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Old January 14th, 2007   #23 (permalink)
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Default Re: Clients Not Paying

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Originally Posted by alexg View Post
because that is the time when Architects get paid from developers. Only then will they have money to pay you.
for developers, more time their money nested in the bank, more interest for them. delaying makes more money. easy to understand.
That's an excuse not a legitimate reason IMO; I get paid twice a month and if I don't have enough money to buy gas or groceries do you think the store is just going to give it to me if I promise to pay them. These Architects have lines of credit and if their cash flow is so low that they can't meet their obligations then I don't want to work with them. This is our fault for allowing this kind of situation to continue, for giving these guy's a product without getting paid in a reasonable amount of time. I feel absolutely no pity for them and I couldn’t care less if they are "insulted" when I ask for 50% up front.
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Old January 14th, 2007   #24 (permalink)
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Default Re: Clients Not Paying

I have to chime in with Devin. You are just setting yourself up for problems if you don't make it clear on the front end and follow up.

One of the biggest problems is when you allow the client to see you as a vendor and not a professional. That is a big problem in the 3D world. People want to have a "cool laid back" job (not that it isn't, but showcasing it too an extreme can be a problem)- and then come across as less than professional. If your client sees you as too laid back they will treat you that way.

Enough professional secrets......LOL

I truly think everyone is doing our industry a disservice by not thinking about how you are perceived and then doing something about it.
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Old January 14th, 2007   #25 (permalink)
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Default Re: Clients Not Paying

Quote:
Originally Posted by alexg View Post
because that is the time when Architects get paid from developers. Only then will they have money to pay you.
for developers, more time their money nested in the bank, more interest for them. delaying makes more money. easy to understand.
I disagree with applying a generalization like this...yes obviously some architects work this way...but in my opinion this is a very poor and frankly stupid way to do business. i used to work with clients that thought this way but no longer. all of the architects i work with pay within 30 days of receiving my invoices whether they've been paid or not. likewise, when i use subs i pay them immediately regardless of whether or not i've been paid. of course, verbal arrangements to the contrary are sometimes ok but this should never be the norm.

i've worked with developers long enough to know that they must acquire immense financial backing before beginning their ventures, and the visualizations they request are a drop in the bucket...there is absolutely no reason why a developer can not pay the architect on time, and therefore, no reason that an architect should fail to pay on time. whether or not the architect has enough gumption and business savvy to collect on payments from there client is another story, but an architect should pay their bills on time period, regardless of whether or not they have been paid...any excuse for not being able to pay is nothing more than that - an excuse.
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Old January 14th, 2007   #26 (permalink)
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Default Re: Clients Not Paying

I dont know if its was already mentioned in this post - but what you could do is provide the client with a low res render, (probably you should state it in the contract) and supplying him with a high resolution image after he transfers the capital. That should do the trick.


And always and i mean always sign agreements with clients!
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Old January 14th, 2007   #27 (permalink)
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Default Re: Clients Not Paying

Oh and one more thing. The client is you source of income, not your friend. You have to be strict with him in some matters, where neccesary.
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Old January 14th, 2007   #28 (permalink)
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Default Re: Clients Not Paying

Guys, I'm not saying I agree with that. It's just that from our personal experience being in both arch and arch-viz that is exactly the reason of late payments (well, somebody did ask why architects pay late, right?). I'm not asking for approval of their conduct.
I hate it as much as you do, it's my bread and butter too, but that is the general idea of how some clients think.
There are good clients too, but we are not talking about them in this thread.
Understanding your enemy (non-paying clients) can lead up to finding a good counter.

The delaying payment method is what the big bossess ideas of saving money. But more often than not, the paying schedule decision comes from accounting dept. They are better person to deal with as they have their deadlines too on paperwork etc. If forcing your way through the bosses came to a long delayed process, then it's better to steer of him and ask your invoice progress straight to the accounts dept. The admin usually has their own hierarchy, and usually the payment decision can be made from financial controller / acc.manager rather than the person that instructs you the job.
I know people who works as accountants, and I know that they put bulk amount of cheques for signing to the directors daily. Once it came from their own acc. dept, most are just signed blindly.

When I find a big boulder blocking my way, I'd rather walk around rather than trying to remove it. Everyone has their own way, just sharing mine. Not trying to offend anybody here.
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Old January 14th, 2007   #29 (permalink)
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Default Re: Clients Not Paying

Don't worry my friend no one is insulted; I think most of us are just venting our frustrations at the situation, it's not personal.
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Old January 14th, 2007   #30 (permalink)
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Default Re: Clients Not Paying

Quote:
Originally Posted by alexg View Post
why architects pay late
The answer to that is the same as the joke that asks why dogs lick themselves..because they can.

Many of my clients I would consider friends. And it does get difficult to ask for retainers from people like that, but not doing so is a recipe for trouble. Same with contracts--use them. No, I do not always always use my contract or require a retainer. But then I'm an idiot.

The real problem comes from many of us being small studios where the owner is also the negotiation and collection guy. That sucks. The larger studios have people for those things, people who are good at those thing. The rest of us could learn a few things from them.
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