Pay that 95% you may get into trouble.

ok thanks! how would you determine the roughly 40% progressive payment part? Would it be like 10% on completion of hacking, 10% on completion of installing floor/wall tiles, 20% on installing utilities (toilet bowl etc)?

Is there an overlap between the commencement of works phase (typically 40%) and the commencement of carpentry phase (typically another 35-40%)? Means the installation of cabinets is the last part?

Progressive payment is abit tricky. If your reno can easily cost over 50k, then it will be good to go into progressive payment discussion with ur ID. If not, you might end up being label as a calculative customer, which every supplier or service provider doesnt like.

You see, IDs also wish to complete job on time and do a beautiful job and they will be more willing to do more for customers whom are understanding and yet, demanding. Understanding in the sense that you know good stuff comes with a price and demanding in the sense that you will tend to supervise on and off on every finishing in every completed process. Like that, even if there is a need to redo, it will only be a small job and no need to dismantle this and that.

If the reno cost is not that high, try not to go to much into progressive payment, cause the ID will also worry about pre starting the next process just in case customer fail to pay up.

Yeah

Thanks David, really appreciate all the advice!

Here is another best story I got:

we are doing a approx. $10,000 cabinet for this Client, 50% was paid as deposit, signed contract term was 30% upon carpentry delivery and final 20% upon handover, seems fair right?

When we start installation and the client swing by to check, and when I asked for 2nd payment, he said: money no problem" finish up the installation I will pay you all!

Fine....customer always right, guess what, after 3 weeks and he keep pushing, either never bring cheque, or there are default hinge all kind of stories, petty my Sales coordinator running up & down and yet what we got are all disappointment.

See, contractor also face the same problem as you, time to visit small claim...

@ Tiler Seng, this is normal. Normally for my case, i will reserve my rights to collect the payment according to contract before completing the next stage of work. CUSTOMERS ARE NOT ALWAYS RIGHT

Hi

One ID asked me to pay 20% deposit, 75% just before starting work and 5% after finishing.

That means I have to pay 95% even before they start the work. Anycomment?

Smells fishy.... please let us know which company? I don't think any " Real" company holds this method of payment, and no house owner will pay this way too........ Just my 2 cents.