Payment Terms

[snowiee 2]

Hi,

I am new here and would like the check the standard practice of the payment temrs of IDs or contractors.

so far have got a few quotes.

an example of the payment terms i got is:

A) Upon confirmation of contract : 10% of GRAND TOTAL AMOUNT

B) Upon commencement of renovation works : 40% of GRAND TOTAL AMOUNT

C) Upon measurement for commencement of carpentry works: 40% of GRAND TOTAL AMOUNT

D) Upon completion of renovation works: 10% of GRAND TOTAL AMOUNT

Basically if based on this terms, even before the start of carpentry works, i got to pay 90% already.. (just measurement only)

My reno works will most probably be quite simple coz its a brand new premium flat. mostly is carpentry works like kitchen cabinets, wardrobes...

so basically my reno works havent maybe 10% or 20% done i got to pay almost the entire amount.... ?

is this the usual practice... seems a bit unfair and scary to the customer...

how i know the ID / contractor wouldnt run away with 90% of my money?

[waileong 0]

Then tell them you don't want them.

[snowiee 2]

Hi,

would like to know the standard usual terms here. anyone here who have completed their renovation works or in the midst of their renovation can care to share your experience please?

deeply appreciate this. thank you so much

[NewbieID 0]

diff companies diff payment

[snowiee 2]

hi, yes understand that different companies have different payment terms...

wanted to find out if its normal that usually for reno works, we have to part with about 90% of the total payment before completion of the contract. coz am not sure what is the usualy practice...

and am afraid that ID/contractor run away after taking measurements for the carpentry works (mine mostly will be carpentry works. no hacking or wet works)

do appreciate any sharing of experiences here.

NewbieID, do apprecaite if you share your terms with the ID you signed up with also.

thanks

[NewbieID 0]

No i dont sign up with ID cause im an ID

my company payment can say its more fair for the client

paying 40 40 is alot

In the first place if u sign up with a decent ID/contractor would u have the fear of them running away.

[snowiee 2]

No i dont sign up with ID cause im an ID

my company payment can say its more fair for the client

paying 40 40 is alot

In the first place if u sign up with a decent ID/contractor would u have the fear of them running away.

Erm..... hostile sounding tone you have..

who to define who is "decent". someone RADAC registered? been reading around also and I understand that some people also encountered problems with RADAC registered ones. On the contrary, some non RADAC registered ones may be reliable too.

If i know someone who is 100% 'decent' in your definition and reliable, of course i would sign up with them.

the problem is I dont know and thats why i have joined here to learn more.

you mentioned your company payment is 'more fair' thanks for sharing and would be glad if you are able to advise on your current payment terms.

if you cant post it here, feel free to email me or pm me.

This would certainly be more helpful than responses that you have posted above.

In fact, my hubby has gotten a few quotes and seems the payment terms are as such. I too feel that the amount upfront seems rather high to be paid (coz before flat is fully completed, got to pay 90% payment during work in progress.)

thats why i came to seek if generally this is what ID/contractors ask for or is such payments terms only limited to a few companies and not the majority.

Thanks joyven for sharing through pm. thanks for ur response!

do hope others can share your experience here.

thanks !!

[snowiee 2]

yo diva, nice to see u here... haha

so ur terms is also before carpentry works, got to pay up 90% also ah...

coz am afraid if its the standard terms of total 90% before carpentry works (Written black and white), then the ID/contractor has the liberty of chasing for payment........

would prefer to pay after completion of carpentry

seems fairer too.. but not sure if companies can change their standard payment terms and not sure if generally do companies word their contract so payment is made after completion of carpentry works

[pencil 1]

yo diva, nice to see u here... haha

so ur terms is also before carpentry works, got to pay up 90% also ah...

coz am afraid if its the standard terms of total 90% before carpentry works (Written black and white), then the ID/contractor has the liberty of chasing for payment........

would prefer to pay after completion of carpentry

seems fairer too.. but not sure if companies can change their standard payment terms and not sure if generally do companies word their contract so payment is made after completion of carpentry works

It also depend at which stage your carpentry measurement is. For me, its pretty much near the end of the project where the wetwork, plastering, painting is done. Pretty much 70% of work is done before my 2nd 40% is due as I don't have too much carpentry.

[zacey 0]

Hi snowiee..

i understand your concerns.. actually, its really difficult to say whether it is std... probably, a better way of mitigating our risks is to get a more reliable ID/contractor? as for defn of reliability... have to rely on the recommendations from fellow forumers... colleagues/frens... and your trust of your ID and the company... gut feel of the person/company you are dealing with, think also impt loh...

[NewbieID 0]

Erm..... hostile sounding tone you have..

who to define who is "decent". someone RADAC registered? been reading around also and I understand that some people also encountered problems with RADAC registered ones. On the contrary, some non RADAC registered ones may be reliable too.

If i know someone who is 100% 'decent' in your definition and reliable, of course i would sign up with them.

the problem is I dont know and thats why i have joined here to learn more.

you mentioned your company payment is 'more fair' thanks for sharing and would be glad if you are able to advise on your current payment terms.

if you cant post it here, feel free to email me or pm me.

This would certainly be more helpful than responses that you have posted above.

In fact, my hubby has gotten a few quotes and seems the payment terms are as such. I too feel that the amount upfront seems rather high to be paid (coz before flat is fully completed, got to pay 90% payment during work in progress.)

thats why i came to seek if generally this is what ID/contractors ask for or is such payments terms only limited to a few companies and not the majority.

Thanks joyven for sharing through pm. thanks for ur response!

do hope others can share your experience here.

thanks

Eh sorry if i sounded hostile

Go for IDs recommended by the people here but of course some of them here are actually promoting themselves. HahA.

And when people blacklist an ID it always mean blacklisting the firm too. But try not to forget that there may be or always have black sheep even in a good strong rep. company. So instead of blacklisting the firm, blacklist the ID instead.

As for the form of payment try to negotiate with them.

[summverale 1]

Hi,

I am new here and would like the check the standard practice of the payment temrs of IDs or contractors.

so far have got a few quotes.

an example of the payment terms i got is:

A) Upon confirmation of contract : 10% of GRAND TOTAL AMOUNT

B) Upon commencement of renovation works : 40% of GRAND TOTAL AMOUNT

C) Upon measurement for commencement of carpentry works: 40% of GRAND TOTAL AMOUNT

D) Upon completion of renovation works: 10% of GRAND TOTAL AMOUNT

Basically if based on this terms, even before the start of carpentry works, i got to pay 90% already.. (just measurement only)

My reno works will most probably be quite simple coz its a brand new premium flat. mostly is carpentry works like kitchen cabinets, wardrobes...

so basically my reno works havent maybe 10% or 20% done i got to pay almost the entire amount.... ?

is this the usual practice... seems a bit unfair and scary to the customer...

how i know the ID / contractor wouldnt run away with 90% of my money?

Hi Snowiee,

If you refer to my topic "Renovation Con-Men", you can tell that your payment term is similar to mine and my carpentry work cost are around 50% of my total reno. cost.

When money is involved, no one is reliable (so good luck with your reno).

[snowiee 2]

actually for me.... my carpentry work is almost 80% (or maybe 90%) of my whole renovation cost......

mine is a brand new premium 4 room flat...

so no wet works like tiling is required... dont intend to do hacking works also.......

basically its built in wardrobes for all 3 rooms and the kitchen cabinets and also installation of small cabinets in the 2 toilets

(i presume all these are considered carpentry works) ?

thats why quite concerned about such payment terms........

ya i agree summervale........ hard to see who is reliable.... and when it comes to money involved........ seems hard to presume anyone is reliable....

thats why so scared and so headache...

so meaning the usual general terms in the market will be there will be 90% payment made already before the carpentry work commences already?

or did anyone managed to get 50% payment made before commencement of the carpentry works

and anohter 40% made upon completion of carpentry (total 90% payment only after carpentry works are finished)

if for my case (where carpentry works take up almost the entire renovation cost) do you think its possible i request for companies those well-known ones like ***** or ciseern etc to actually change their payment terms to suit mine?

[zirhk3355 1]

Basically the reason why the standard terms of payment is 10-40-40-10 is because:

10% - Downpayment to start design process

40% - Payment for all works other than carpentry works

40% - Payment for carpentry works

10% - Retention fee for handover

actually for me.... my carpentry work is almost 80% (or maybe 90%) of my whole renovation cost......

mine is a brand new premium 4 room flat...

so no wet works like tiling is required... dont intend to do hacking works also.......

basically its built in wardrobes for all 3 rooms and the kitchen cabinets and also installation of small cabinets in the 2 toilets

(i presume all these are considered carpentry works) ?

thats why quite concerned about such payment terms........

IMO, since the market practice such percentage breakdown, you can hardly change it. However, you may be able to negotiate on when the payment should be made. My suggestion as follows:

10% - Downpayment to start design process

40% - First payment prior to commencement of works

40% - Second payment upon completion of HALF of carpentry works

10% - Retention fee for handover

Reason with the ID that since the bulk of works is in carpentry, the payment terms should also reflect as such. You should also sit down with the ID to decide what is the DEFINITION of half of carpentry works, and put that in black and white.

Good luck!

[snowiee 2]

thanks a lot for ur advise !