I assume this would be a Management question, but moderators can move it if you wish. I have a client who is trying to manage his own project, thinks he's smart. We built his kitchen and desk area, and he wanted them installed early January, and we held up to our end of the bargain. Long story short the cabinets are still here, finished, vulnerable to damage, taking up space, and tying up my money. I don't have any clause for 'hold over' or 'storage' in my contract, but I want to bill him anyway. What is a normal per day storage fee? We are a 6000' building, 8 employees.
We charge what we pay in rent, plus insurance plus moving and handling / inconvenience. Some jobs we include it in the price when we know we have to sit on finished goods.
Our proposal is "stored materials will be billed monthly after 30 days of storage unless otherwise noted in contract documents"
You definitely need a clause in your contract for this scenario. The big deal is not so much the storage space but the cash flow issue.
Most people are very reasonable about this. I typically say they can avoid a storage fee if they will pay for the completed cabinets, and we will bill for the installation when we're all done. Suggest that they come by to see the completed work. If it helps, let them have a $1,000 retention. If they still won't pay, then tell them you will be delivering the cabinets to their driveway tomorrow and they will now be responsible for storage.
I would chalk this up as a lesson learned, and put storage into your contract.
We don't deal with cabinets, but I would suggest coming up with a dollar amount per running foot of base cabinet. We only have to deal with holdover of flooring, so we charge per SF. $25/MSF/MO. SF is rounded up to full M, so 1300SF is billed at $50/mo.
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