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Old 08-06-2014, 04:50 PM   #1
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How to split payments for finishing attic?


Finishing an unfinished attic including building an bathroom will cost $12,000. The homeowner plans to make four 25% progress payments for the project. The first 25% is the down payment. The last 25% payment is for the punch list complete and final release of all liens. Is it ok? If so, can you help to arrange the other two 25% or one 50% payment in the middle? Is it paid after the completion of drywall, bathroom/ plumbing fixtures set but only leave the installation of the carpet or what else? Thank you for your answer.
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Old 08-06-2014, 05:47 PM   #2
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Quote:
Originally Posted by compiler View Post
Finishing an unfinished attic including building an bathroom will cost $12,000. The homeowner plans to make four 25% progress payments for the project. The first 25% is the down payment. The last 25% payment is for the punch list complete and final release of all liens. Is it ok? If so, can you help to arrange the other two 25% or one 50% payment in the middle? Is it paid after the completion of drywall, bathroom/ plumbing fixtures set but only leave the installation of the carpet or what else? Thank you for your answer.
It is all negotiable, there is no real standard or practice. You can figure it out on your own by offering and coming to an arrangement everyone agrees with.
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Old 08-06-2014, 06:48 PM   #3
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What is the start date and estimated completion date on the contract? Work out something with the builders based off of those dates.
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Old 08-06-2014, 11:01 PM   #4
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What is the start date and estimated completion date on the contract? Work out something with the builders based off of those dates.
That's definitely not a good way to spread out progress payments! Indeed to be based on the amount of work complete, not the amount of time taken.
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Old 08-07-2014, 12:25 AM   #5
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That's definitely not a good way to spread out progress payments! Indeed to be based on the amount of work complete, not the amount of time taken.
Be careful determining payments based on "percentage of completion," that can also be a sticky wicket. Who is to determine the percentage and who has the final say should there be a disagreement, should be a part of that type of agreement.
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Old 08-07-2014, 08:55 AM   #6
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$12,000, must be a very small job, a bath can cost that alone.

Holding 25% on the final would bother me, 10% is more like it in my book. They could ride it out for a long time holding that 25%.
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Old 08-07-2014, 09:09 AM   #7
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Twenty-five percentage retainage is way over the top, 10% is more customary. I wouldn't allow any retainage, hell that's your money if you see that much when your finished, why would you want to wait for it any more than five minutes past completion?
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Old 08-07-2014, 09:38 AM   #8
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Where are you located? Namibia?

$12,000.00 doesn't seem like much for the scope of work you stated.

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Old 08-07-2014, 09:34 PM   #9
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Quote:
Originally Posted by Bud Cline View Post
Be careful determining payments based on "percentage of completion," that can also be a sticky wicket. Who is to determine the percentage and who has the final say should there be a disagreement, should be a part of that type of agreement.
It's certainly better than setting a length of time like the previous poster mentioned. Actually maybe percentage was a bad word to use, I was thinking of at certain milestones such as framing complete, sheet rock complete, electrical rough in complete and approved, etc.
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