Getting Paid: Deposits, Terms, And The Invoice That Is 60 Days Late

The work is done. The invoice is out. The money is not in.

That is not just an invoicing problem. It often starts before the truck leaves your shop. If the customer does not know the deposit, payment schedule, and due date on the first call, you are asking the invoice to settle an argument that should have been settled before the appointment.

California does not let you guess at the deposit

California gives you a concrete example of why you need to check the rule before asking for money up front.

For a California home improvement job or swimming pool, the down payment cannot be more than $1,000 or 10 percent of the contract price, whichever is less. Finance charges are excluded from that calculation. There are no exceptions to that down payment limit for special-order materials.

So “half up front” is not legal on a California home improvement job when it exceeds that limit. A customer asking for custom fixtures does not change the rule.

California also requires a written contract for every home improvement project over $500. That is a California rule. Your state may use a different project amount, a different deposit cap, or a different contract requirement. Look up your own state licensing board’s rule. If the situation is unclear, ask an attorney licensed in your state.

The price conversation still starts on the phone. You may need to explain how you answer the price question on the phone, along with whether you charge a trip fee. A clear first conversation gives the customer a chance to decide before you send a truck.

The payment schedule belongs in the contract

California requires a detailed, written payment schedule in the home improvement contract. That schedule is not a place for “payment due when convenient.” It should state when each payment is due and what work it covers.

California also says payments to the contractor cannot exceed the value of the work performed, except for the down payment. That matters when you are setting progress payments. You cannot simply pick a large payment because the next invoice is coming due. The payment must match the rule and the work.

This is where your pricing method needs to be clear too. If you use flat rate pricing, explain the price and payment timing before work starts. If you use hourly pricing, explain what the customer is paying for and when payment is due. Your approach to flat rate or hourly pricing affects the conversation, but neither approach removes the need for written terms.

If a larger job needs a financing option, discuss offering financing on big jobs before the customer approves the work. Financing is separate from pretending the deposit rule does not apply.

Bella should say the terms before the appointment is booked

The first call is where the money conversation belongs.

The caller should hear the deposit amount, the payment schedule, and when payment is due before the appointment is booked. That does not require a speech. It requires the same plain sentence on every call.

You might say that the job requires a deposit, that progress payments follow the written schedule, and that the balance is due at the stated point in the work. The exact terms must match your contract and your state’s rules.

Nobody argues about terms they already agreed to. Customers may still have questions. That is fine. Questions on the first call are easier to handle than a dispute after the work is complete.

This also gives you a chance to explain the trip fee, the pricing method, and whether a quote will be followed up. If a quote sits unanswered, use a simple quote follow-up process instead of assuming the customer remembers what was discussed.

Your answering service can help keep the wording consistent. Bella can state the deposit and payment terms before the appointment is placed on the schedule. That is a phone habit, not a form you hope someone reads later.

A late invoice needs a written demand

California Civil Code section 8800 gives another concrete example. On a private work project, the owner must pay, within 30 days after notice demanding payment pursuant to the contract is given, any progress payment due when there is no good faith dispute.

Read that timing carefully. The 30-day period in this rule starts after the written demand is given. It does not start on the day you finished the work.

If the owner wrongfully withholds payment, the owner is liable to the direct contractor for a penalty of 2 percent per month on the amount wrongfully withheld, in place of any interest otherwise due. If there is a good faith dispute, the owner may withhold an amount no greater than 150 percent of the disputed amount.

The prevailing party in a collection action can recover costs and reasonable attorney fees.

These are California rules. They are not a general collection rule for every plumbing shop. Check your own state’s prompt payment law and contract requirements before relying on any deadline, penalty, or remedy. Send the written demand required by your contract and applicable law. Keep a copy and keep proof of when it was given.

Do not treat a late invoice as a message you send once and forget. If the customer disputes part of the work, identify the disputed amount and document the communication. If there is no dispute, do not let the unpaid balance sit in a drawer while you wait for the customer to remember it.

The lien deadline can move from 90 days to 60

California’s direct contractor lien deadline is another reason not to let an unpaid invoice drift.

Under California Civil Code section 8412, a direct contractor must record a claim of lien before the earlier of 90 days after completion of the work of improvement, or 60 days after the owner records a notice of completion or cessation.

That means the deadline can move from 90 days to 60 days. The shorter period is tied to the owner recording a notice of completion or cessation. Waiting to be nice about an unpaid invoice can cost you time.

This is also a California rule. Every state sets its own lien deadline and lien requirements. Check your state’s law, licensing information, or an attorney before relying on a lien remedy. Put a process in place to track the date work is completed and the dates connected to any notice you learn about.

Getting paid starts with the first call

Your invoice cannot fix terms that were never stated. It cannot turn a vague promise into a payment schedule. It cannot restore a lien deadline that has already passed.

Set the deposit, payment schedule, and due date before the appointment is booked. Put the terms in the written contract. Send a written demand when an invoice is late. Check your state’s rules instead of copying California’s numbers.

Plumber Secretary can have Bella state your deposit and payment terms on every call so every caller hears the same thing. Hear how she handles it on the demo line at (669) 284-5564.