Payment

[Jinnewbie 0]

Hi

One ID asked me to pay 20% deposit, 75% just before starting work and 5% after finishing.

That means I have to pay 95% even before they start the work. Anycomment?

[skins 2]

I wont take the risk.

[Jinnewbie 0]

thanks

[newhere 2]

Not advisable

[gemini 8]

wah! Better not.

[Songz 132]

If i rem correctly should be :

10% deposit upon signing of agreement.

40% upon commencement of works.

45% progressive payment.(Before commencement of carpentry work)

5% upon handing over the premise to the owner possession.

[HanTu 0]

Yes correct. It is usually 10-40-40-10 or 10-40-45-5 or somewhere near.

[firescorpz 0]

Dont get con

[tanmeng 4]

This sound suspicious. Better not pay so much without any work done. Some IDs want to tie you down with them so they can chop the carrot head more along the way.

[kykyky88 0]

should keep at least 15% till warranty run out

[ivanbcc 1]

My payment schedule is 10 (on signing), 50 (on commencement of works), 35 (on commencement of carpentry works at factory) and 5 (on completion). Is this fair or should I bargain for a better schedule?

[DavidSee611 3]

On completion shld be higher. Remember, 5% is nothing to lose for ID if they fail to complete their work in a proper manner. Lock their payment and they will definitely complete the work for you.

[ivanbcc 1]

Thanks David! I'm wondering what number will be reasonable - 10/15/20%? Obviously the higher the better but I also don't want to come across as unreasonable.

[DavidSee611 3]

Normally an ID margin is around 20%. If the work is expected to take 2 months, then split into 2 will be good. So final amount will be like 10%. If not, you can try 15% too. Like that, they get paid for first month work, and the balance for second month. This will be reasonable for all.

[ivanbcc 1]

Ok, thanks! My reno is quite minor, expected to only take about a month. will try to go for 15%, but if not will do 10%. Thanks!