Payment Schedule

[dove 0]

Received the following payment schedule:

65% upon commencement of works

30% upon commencement of carpentry works

5% upon job completion

Is this the industry standard? Cos i feel 65% upon work commencement seems kinda high, and 5% as the final payment seem to leave me with small bargaining power for the ID to clear outstanding issues.

Can someone share their experience?

[MaCe 3]

Received the following payment schedule:

65% upon commencement of works

30% upon commencement of carpentry works

5% upon job completion

Is this the industry standard? Cos i feel 65% upon work commencement seems kinda high, and 5% as the final payment seem to leave me with small bargaining power for the ID to clear outstanding issues.

Can someone share their experience?

i got to chase after my contractor for paying him.

companies who have NO faith in their works tends to want "MONEY UPFRONT".

money first, you can complain all you want later.

[wonsen 0]

mine is 40, 40, 20...yah i think 65% is quite alot...

[mud3210 0]

mine is as follows:

10% deposit

30% start wet works

50% start carpentary works

10% full completion

i alr made 10%, but he wanted to collect the 30% and 50% at the same time b4 he start on the carpentary and wetworks..

which means he will have collected 90% frm me even b4 he deliver any carpentry materials to my house!! is this normal??!!? ^_~

Edited June 17, 2008 by mud3210

[raincole 0]

Mine was 10%, 40%, 45%, 5%. But I changed to 10%, 40%, 40%, 10%.

Think the term of payment can be changed and agreed upon between you and the id.

Most important is that it is written somewhere with company letterhead of all agreed item.

[lxiul 0]

think mine is

- 10% deposit

- 40% upon deliver of tiles/sand/cement and start work

- 20% cant rem this is completion or commencement of carpentry

- 20% also cant rem if this is completion or commencement of painting

- 10% handover

[JCase 0]

Received the following payment schedule:

65% upon commencement of works

30% upon commencement of carpentry works

5% upon job completion

Is this the industry standard? Cos i feel 65% upon work commencement seems kinda high, and 5% as the final payment seem to leave me with small bargaining power for the ID to clear outstanding issues.

Can someone share their experience?

Wow. Better look for another ID. 65% is excessive.

[edmwerID 0]

thats because his is purely carpentry only

should be something like

20 upon confirm

30 upon site measurement or 3d drawings or perspective drawing

30 upon detail drawing colour choosing materials choosing

10 before carpentry up

10 upon completetion

most companies policy should be before carpentry upload die die must collect 90%

and when companies require u to pay so much upfront before any work done usually cause they are in the red zone.

high chance they will run away

[h4happy 1]

65% is abit too high and if you are sure that they can delivery the goods and in good condition, then it is ok to pay 65% upfront.

If it is a sloppy works, then chialet liao!

[mud3210 0]

should be something like

20 upon confirm

30 upon site measurement or 3d drawings or perspective drawing

30 upon detail drawing colour choosing materials choosing

10 before carpentry up

10 upon completetion

most companies policy should be before carpentry upload die die must collect 90%

well i am sure any human being would find it is MOSt absurb to be paying 90% when the materials are not even delivered to the customers place. u mean b4 carpentary are up must collect 90%, when materials not even delivered mah?! u Really think it's reasonable?

i tink i am gg to pay him max just 40% Upon delivery of materials and the rest in stages till completion.

[MaCe 3]

one thing to note - such partial payments are not BOUND by the law.

it's just a agreement between 2 parties. you neg what/how you wan to pay, money is yours.

[dove 0]

hi all, thanks for your advice, looks like i should not accept their payment terms. To my amazement, the co is neither a HDB registered contractor, neither is it an accredited contract in RADAC! Most impt of all, the co was incorporated only this year! Giving me jitters already, but I have paid a deposit. Now wondering wat to do.

[MaCe 3]

hi all, thanks for your advice, looks like i should not accept their payment terms. To my amazement, the co is neither a HDB registered contractor, neither is it an accredited contract in RADAC! Most impt of all, the co was incorporated only this year! Giving me jitters already, but I have paid a deposit. Now wondering wat to do.

then tell them this - you not HDB registered + no RADAC so i wont pay a cent until the reno finish. take it or leave it.

[dove 0]

Wow, ok noted. meeting the ID this weekend to resolve. thinking of using the deposit money to do some ala-carte reno instead. Better to avoid more trouble.

[edmwerID 0]

well i am sure any human being would find it is MOSt absurb to be paying 90% when the materials are not even delivered to the customers place. u mean b4 carpentary are up must collect 90%, when materials not even delivered mah?! u Really think it's reasonable?

i tink i am gg to pay him max just 40% Upon delivery of materials and the rest in stages till completion.

u all need to know that if u are just doing carpentry work

your cost of carpentry is around 80-90 percent of the quotation which u signed

most companies would want to ensure that they do not lose money if the clients end up running away (yes we do encounter them) bankrupt (yes them do) or clients refuse to pay up at the end, because losing the last 10% will not affect the company income.

very simple reason is when the carpentry is uploaded to your house

the carpenters company will issue an invoice to the company asking for the payment already

and why would the company pay the carpenters when they have not recieve the $ yet

one thing to note - such partial payments are not BOUND by the law.

it's just a agreement between 2 parties. you neg what/how you wan to pay, money is yours.

it is bound by the terms and conditions when the consumer party sign the contract

the company have the right to small claim court you or pause any on going works and even fine u for delay payment

hi all, thanks for your advice, looks like i should not accept their payment terms. To my amazement, the co is neither a HDB registered contractor, neither is it an accredited contract in RADAC! Most impt of all, the co was incorporated only this year! Giving me jitters already, but I have paid a deposit. Now wondering wat to do.

RADAC is just for show to be honest

most impt is HDB REG CONTRACTOR

a company can have super brand, iso, radac, enterprise, trusted brand etc

its useless when its not a HDB REG company

so pretty much u are pretty screwed aka 0wn3d so good luck to you, start praying they dont run away