Remodel payment schedule
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Anonymous
| If you've done some type of remodel, what % was the final payment? We are beginning a project and talking to contractors. Trying to get a sense of how payments should be scheduled. Also, if the set final amount is a very low percentage, can you negotiate? |
Anonymous
| The final payment was very low (a couple thousand), and others were huge, but based on paying for materials, cabinets for example (large kitchen + 3 bathrooms). We were not able to negotiate, as the draws were (mostly) based on their costs for ordering (plus lots of mark up I'm sure) |
Anonymous
| Normal. For us, last payment was like 2% and the other 8 or 9 draws plus a deposit were all about even. |
Anonymous
Same but now here we are with only the final unpaid and so much work left. I wish we had more money on the line still for leverage. |
Anonymous
| Ours is closer to 10% |
Anonymous
| That last payment should be a large enough percentage to incentivise the contractor to complete the job, with the final punch list complete and to your "reasonable" satisfaction. |
Anonymous
| My experience is it's about 10-15%. |
Anonymous
| 10-30%. My last bathroom remodel it was 1/3. Make sure to have the draw schedule tied to significant milestones, we learned that lesson the hard way. |
Anonymous
| Ours was 20% of labor costs (large material costs were paid separately and often directly to the vendor.) |
Anonymous
| Ours was 20% of labor. We paid for the finish materials ourselves but contractor bought drywall etc. this was for kitchen and bathroom remodels. |
Anonymous
| Its typically 10 percent retainage until punch list is completed. |
Anonymous
No - it’s not. Where I work it would not even be legal. |
Anonymous
|
Mine is 10%. When I was calling references, one lady said her bank made them adjust it to 30% and that is the only reason she thought they finished. We are wrapping up the project within the next 2 months, so ask me then.
My advice is to spell out what needs to be done at each milestone. It will say "framing" : OK, what exactly does that mean? Also ask to see receipts or confirmation for all big items that you pay up front like cabinets. We had an issue where things were not ordered, and it set us back months. |
Anonymous
| <5% is typical. |
Anonymous
|
Not sure where you are located - but in Maryland I have often found:
1/3 upon hiring/contract sign (legally not allowed to be more % than this) 1/3 materials delivered/partial completion 1/3 completion |