How many specwriters require a Retainer?

Log Out | Topics | Search Moderators | Register | Edit Profile

Thread Last Poster Posts Pages Last Post   Closed: New threads not accepted on this page

Author Message (Unregistered Guest) Unregistered guest Posted on Thursday, November 04, 2010 - 11:18 pm:    I am curious if anyone has had more issues with obtaining retainers in "this economy". I never requested one until about 1-1/2 years ago and most new clients don't balk, but some do. I also added a clause in my proposal requiring accounts to be current to 80% of the contract amount before I will release final specs. (posting as "unregistered" to avoid any conflicts of interest) I just had a potential new client cross out the retainer portion of my contract (without discussing it w/ me) for a small job. The retainer amount would have been $900. It makes me nervous that someone won't pay 30% upfront when 65% is due in 2 weeks. What has everyone been seeing since the economy has changed? Greater reluctance to pay retainers? (Unregistered Guest) Unregistered guest Posted on Saturday, November 06, 2010 - 03:00 pm:    I am curious what the "other" side might have to say about "new" specifiers requiring up-front retainers? I think requiring an up-front retainer is a clear indication to your potential client that you don't trust them; and the reverse can be said when clients don't want to pay a retainer...such a good way to start a relationship! Maybe these services-payment transactions should be handled like....ransom demands/hostage negotiations...simultaneous "you-hand-me-the-money-and-I-hand-you-the-specs"? (Unregistered Guest) Unregistered guest Posted on Sunday, November 07, 2010 - 11:49 am:    It isn't about trust - it is about making smart business decisions. Doctors demand your c-opay at time of service. Attorneys won't touch your case without a retainer. Architects themselves often require a retainer. The owner often retains a percentage from the contractor. Often, a specifier can be well into a project, past 60-70% before the client gets paid for 30% by the owner. I have known architects who work up to 100% without getting paid (they didn't want to stop work, because then the owner might think they didn't "trust" thme) and then the job went bankrupt and no one got paid anything. Once I do a project with a client and get a feel for their payment process and work ethic, I remove the retainer requirement. For a new client, who I don't know, then yes, just like any new relationship-trust needs to be earned. This isn't "rude" or inappropriate - its sound business. Let me add, that if a new client calls and talks to me about waiving the retainer, I usually will. It is a red flag to me when they just delete it from the contract without any discussion. (Unregistered Guest) Unregistered guest Posted on Sunday, November 07, 2010 - 02:50 pm:    hmm. I've never asked for a retainer but I do have a clause saying I will stop work if the client is more than 6 weeks out on their bill. On my projects, my typical first billing is for schematic design -- about 20% of the total -- and so far (with one exception) all my clients have paid within 30 days, so I'm not too concerned. I'll think about this -- and posting anonymously at this time. Anonymous (Unregistered Guest) Unregistered guest Posted on Wednesday, November 10, 2010 - 07:43 am:    In 33 years I never asked for a retainer and my losses (unpaid bills) are less than 0.05%. I'd say that's better than most business and professions that I am familiar with. Tom Good, Architect, RA, CDT, SCIP, LEED AP Senior Member Username: tom_good Post Number: 14 Registered: 11-2006 Posted on Sunday, February 20, 2011 - 04:04 am:    I only work for Architects, never Owners, and never have a retainer, just an Archtiect-Consultant Agreement. (Unregistered Guest) Unregistered guest Posted on Monday, February 21, 2011 - 09:49 pm:    I'm awaiting payment from a client for work I performed on their behalf in October and November. I will require a retainer from them on future projects.