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April 30, 2006
% Down on Construction Agreement?
Can anyone inform me of the average % a construction firm should request down upon signing a construction agreement? Would you think 40% to be unreasonable? Thanks!
Comments
30% is OK
40% might be 2 much
Posted by: Anonymous at April 30, 2006 9:05 PM
As a handyman/finish carepnter I ask for 50%, this is the norm. Then the additional sometimes is done differently. I ask for the final upon completion of the job, but some ask for 25 after 3/4 of the work is done ands the final 25 upon completion.
Hope this helps
Dan
Posted by: Dan at May 1, 2006 9:24 AM
Upfront seems a touch high, but remember materials are costly and most contractors live pretty much hand to mouth. You may want to see if you can pay the 40% in 2 payments to make sure things get rolling. Keep in mind the most important payment is not the first, its the last. Withold AT LEAST 10% until the project is completed to your satisfaction, or you will go straight to the bottom of the priority chain when it comes to finishing the punch list.
Posted by: Anonymous at May 1, 2006 4:34 PM
It totally depends on the size of the job - the down payment percentage on a $10,000 job would usually be much higher than on a $500,000 job. For a big job I would say 10-20% is ok where on a small job 50% could be ok.
Posted by: anon at May 2, 2006 10:31 PM
i agree, hold at least 10% back until it is finished if not more. i always put paid upon acceptable inspections and signed permits. you wouldn't believe how many guys don't come back to finish the last few things, never mind call for inspections.
Posted by: Anonymous at May 3, 2006 2:24 PM
We ask for the cost of materials plus the profit and over head on the materials. That pays for the material up front and gives us a good amount to live on untill the job is complete. If it is a much longer job we make a schedule exibit with their contract that explaines when certian percents are doue. I agree the customer should always hold beck 10% untill the job is completed to their satifaction.
Posted by: Anonymous at April 25, 2007 1:00 AM
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