Remodel payment schedule

[Anonymous]

Anonymous wrote:

Anonymous wrote:Its typically 10 percent retainage until punch list is completed.

No - it’s not.

Where I work it would not even be legal.

What do you mean that wouldn’t be legal?

[Anonymous]

Bumping this. How low is too low for the last payment, if you want them to come finish the punch list up in a timely manner? The contractor is proposing $2000 (less than 2% of contract cost.)

[Anonymous]

Anonymous wrote:Bumping this. How low is too low for the last payment, if you want them to come finish the punch list up in a timely manner? The contractor is proposing $2000 (less than 2% of contract cost.)

. Counter to 5 or 10%. It really depends on what the preceding payment is and what you have signed off on as to how punch list is addressed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Bumping this. How low is too low for the last payment, if you want them to come finish the punch list up in a timely manner? The contractor is proposing $2000 (less than 2% of contract cost.)

. Counter to 5 or 10%. It really depends on what the preceding payment is and what you have signed off on as to how punch list is addressed.

If there's a change order is that typically added to the last payment?

[Anonymous]

10% retained from each payment phase. All to be released at final completion of job.
This gives the GC incentive to get the job done.
A bonus for early completion is a good motivator too.

When the final payment is low, there isn't much incentive to finish up the job, especially if the work required is more than the value of final payment.

[Anonymous]

It was 10% on my recent remodel. I would not agree to less than that. 2k is a joke and you might have a hard time getting the contractor to come back if there are any bigger issues.