Advise Needed For Renovation Progressive Payment

[blueblue_m6 0]

hi all.

i need some advises. after reading some threads in forum abt contractors running away & job nt done after payment, im quite worried.

my reno works cost ard $60k (wet works + carpentry).

my id told me to give them 50% of contract amount - deposit 2nd day we start work (which is next tues). the thing is, as cny is approaching, all carpentry work will only commence end feb 07, as he claims workers will only start work 2 wks after cny.

is it safe for me to give him so much now? anyone can advise wat the norm is? thank u in advance.

[arcturuz 0]

hi all.

i need some advises. after reading some threads in forum abt contractors running away & job nt done after payment, im quite worried.

my reno works cost ard $60k (wet works + carpentry).

my id told me to give them 50% of contract amount - deposit 2nd day we start work (which is next tues). the thing is, as cny is approaching, all carpentry work will only commence end feb 07, as he claims workers will only start work 2 wks after cny.

is it safe for me to give him so much now? anyone can advise wat the norm is? thank u in advance.

why not just start your reno after CNY?

[applefreak 1]

thought the norm is usually 10% on work starting, 40% upon completion of all wet works (or delivery of sand & tiles), 40% on delivery of all carpentry materials

and the remaining 10% on completion?

[crrabb 0]

Usually I get ID or contractors asking for 10-40-40-10, or 10-40-45-5, or in my reno case => 10-30-30-25-5. Usually they will ask for 10% deposit when signing the contract, then 40% when starting reno work, followed by the rest of the payments in stages according to the progress of work. So if you haven't paid the 10% deposit yet, then the 50% your contractor is asking could be the (10+40)% when work starts.

If the payment terms in your contract is to give 50% at start of any reno, then you have no choice but to follow it ya.. Just gotta trust your contractor, then hope and pray.. If the payment terms doesn't state 50%, then in my opinion better be careful, cos I read a few cases in forum that some ppl pay up in advance but the work wasn't progressing as expected.

ON hindsight, before sigining the contract, if you have concerns with the payment terms, you could always negogiate with the ID/contractor, especially if big amount is involved. Some are quite flexible in the payment terms since they want to get your deal.

Jus my 2 cents worth...

[blueblue_m6 0]

why not just start your reno after CNY?

the hse is v badly maintained-super dirty & ugly... juz got the keys. i'll rather get things over & done with asap. thanx for suggesting though. hehe. !!

thought the norm is usually 10% on work starting, 40% upon completion of all wet works (or delivery of sand & tiles), 40% on delivery of all carpentry materials

and the remaining 10% on completion?

my contract says 10% upon confirmation of reno works, 40% upon commencement of reno works, 40% upon measurement of carpentry, 10% upon completion. sigh.. nvr read these fine prints b4 committing..

my id agreed to reduce it to $25k instead. though nt too much of a diff, but better than nothing. hehe. thanx for all ur advises. =)

Edited January 4, 2008 by blueblue_m6

[applefreak 1]

oh okay, i only heard from those who engaged ID coz my contractor collected 30% when 70% work done and the rest onloy after i confirm all is well !! !!