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Question DetailsAsked on 6/14/2012

Contractor payment schedule

I have a concrete replacement contractor who wants 90% of the agreed to price before any concrete is poured which I am reluctant to agree to. Any recommended schedule of payment?

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2 Answers

1
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Never pay that % before work is done. Is totally unreasonable. You are not ordering custom made drapes. If contractor is reputable, ie, friend refered him,Better Business Bureau A+ rating,etc have no problem with agreeing to paying 1/2 at START of work (offer cashiers check if necessary) and balance when work is satisfactorily completed. Suggest you hold back last 10% if project needs verification that work was preformed in a workmanlike manner. Example gutters, making sure they flow correctly and you have no standing water in them or tree they planted doesnt fall over, you get the idea. Be reasonable but not a push over. My background 40+ years Nebraska & Iowa home improvement contactor.

Source: http://heartlandmastershield.com

Answered 7 years ago by jccasper

1
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I collect 50% up front for my jobs unless they're big ($40k+ at least). Then depending on the size of the job I break it into 1/4 payment at a certain progress point and then the rest at completion. As a rule I don't float out too much of my own money on a job so the draws should match my spending. It's quite time consuming and can be impossible to get money from a customer who is unwilling to pay. If the amount is high enough it could force me to go out of business or go bankrupt. No single job is worth that. If it is a smaller job and most of my cost can be covered out of the 50% deposit I just collect the remaining at completion.

Make sure your payment terms and scope of work are written in a contract and acknowledged by both you and your contractor.

Todd Shell
Todd's Home Services

Answered 7 years ago by Todd's Home Services




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