Normally when a person does work for another he expects to be paid in a timely manner. My question is this. Does anyone in the forestry industry do work on a forestry tract for someone else, and not receive payment at that time, but have a contract with the landowner that they will receive a certain percentage of the gross payment when that owner sells their timber? I have ordered a heavy duty brush cutter for my skid steer. Mostly I will be using it on my own land, but, I have a neighbor that her planted pine trees are growing up with trash trees in between the rows of pine trees. I know her well, and I know she can't afford to pay me for that service. But, has anyone ever done work like that for a percentage of the gross sales amount when she sells her timber down the road?
I'd be cautious about doing any more than what you'd be willing to do as a favor. A lot of things can change in the time it takes those trees to become marketable. My 2 cents.
It has been done, but you should have a signed legal document between you and your neighbor spelling out the terms of the timber reservation and the sale of the timber should be in a short term of 1-10 years or less.
You would be doing the work for a commission on your neighbor's timber sale value. The price of your work before the timber sale might also be a tax deduction for your neighbor if your work improves the timber stand area prior to the sale.
Consulting foresters often work on a commission based on the value they receive for a client's timber sale.
I am not not in the habit of doing work on time but it can certainly be done if both of you agree to it and you can afford to wait for your compensation/reimbursement.
I would include in the written contract a no later than date for payment something like "Client to pay $____ or __% of the sale (Whichever is greater) of the timber/land where the work was performed NLT ___ Date or 30 days the dale of the property, whichever occurs first."
If you don't have some kind of drop dead date for payment what do you do if they never sell the timber/land? Also how do you verify the amount of the sale?
I would ensure the price for the work included/reflected the expected delay in payment. I remember taking a course which included some "Time Value Of Money" calculations and I think we used estimates like $1 today is worth $.91 a year from now or $.82 two years from now, etc.
Good luck and as mentioned above - be prepared not to ever collect anything from it. If you are not willing to accept that risk I'd back out of it right now.
Not just unusual, I'm not sure the law recognizes the rights of labor willing to wait that long. In VA IIRC I have several years to file a mechanics lien, in WV I have 30 days. I had a contract with some sharp WV businessmen who said they would pay me when the house in that instance, sold, or after 30 days. I thought I was being reasonable and giving them 30 days to sell the house. In WV that contract removed my ability to file a labor lien. If you do want to set it up right I think it will take a local lawyer who knows whatever the pertinent laws are in your state.
You can write a contract to say just about anything, as long as it's legal and both parties agree. It's really not much different to lending someone a sum of money. You can set the repayment terms as you mutually agree. As long as it's recorded as a debt the other person owes, there isn't any legal time limit on it. Even if they die before they repay it, the money can be collected from their Estate. Same as if you die and still owe the bank $X,000 on your credit card. Or your power bill etc... The Executor of your Estate has to settle those debts from any assets you left behind.
The question then becomes do you want to go to the hassle of drawing up a formal contract, one that covers all eventualities. This is where lawyers earn the big $$ :D