Never done this before. Is this normal/acceptable?


Typical Payment Schedule (may vary based on project):
Approx. 25% due upon acceptance of work order.
Approx. 25% due upon commencement of work.
Approx. 25% due at 50% project completion.
Approx. 25% due upon substantial completion of the project.
Small final payment held out until after any punch list and delayed installations (such as shower glass).

gabehcoud said:

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Never done this before. Is this normal/acceptable?


Typical Payment Schedule (may vary based on project):
Approx. 25% due upon acceptance of work order.
Approx. 25% due upon commencement of work.
Approx. 25% due at 50% project completion.
Approx. 25% due upon substantial completion of the project.
Small final payment held out until after any punch list and delayed installations (such as shower glass).

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Shower glass not installed is not substantial completion for me and I would not be making a 25% final payment for an unusable shower.

I can't say if that is a normal schedule, but I would certainly take exception to it.
I would also clarify what the milestones are for 50% completion in a defined manner vs just their word.

Graded less than an "A"
You are always paying Ahead of completed work, so if no work performed, that money left and can't hire another to finish it.
You might as well pay for all materials, then by-the-hour labor.

Whatever money it takes for a 3rd party to do the next phase is what you do not pay/withhold + money to cover time/frustration arranging with a 3rd party.

Me thinks you didn't get a second bid with a 5-star outfit.
Good luck, whatever happens.

This is the first bid. More coming

That's a no from me dawg. That's 75% payment for a half completed reno. Not an indictment of your guy necessarily, but 75%+ can get into the realm of I've squeaked out enough that I can bail now. Shouldn't need a 25% deposit (acceptance of work order) and another 25% to mobilize. That's half before they even start.

If they need to order materials or some custom made Egyptian toilet, work that part out, but define where that is stored and who is responsible for it.

That is not a very common way of invoicing for remodel construction. If I were advising you as the architect, I would pass on that arrangement.

Ask for a Schedule of Values and a Construction Schedule. Materials and long lead items can be ordered, those are understandable. The most I have seen asked for down is 20%, but a lot of that is materials and mobilization. Good luck!

As an example, here is the draw schedule out of my current build contract. I changed the numbers to percentages. Each payment is due at the start of the listed items except the final.


One other thing I have recently come upon in reading is that it looks like in Texas, if you hold out 10% for final payment and hold it out for 30 days or until you receive lien waivers, you can't be on the hook for more than that should one of your builders subs file a mechanics lien. I'm not a lawyer though so take my interpretation of the Texas property code with a massive grain of salt.

I would say the tyoe of job here matters a lot. Most small construction folsk do not want to cover materials out of pocket. THis is no different than you not wantin them to be ahead of you.

If you are doing flooring for instance, I have seen folks ask for 50% once the material is delivered because it is about half of the job. If this s a bathroom that is 25K to remodel and includes a $3K tub that has to be preordered, you should expect to pay more when that is ordered.