Kitchen Reno - Payment Schedule

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Posted by: from London
9/11/2013 at 11:23:16 AM

Is there an industry standard for a Payment Schedule for a kitchen reno?

I want to hold back 10% for 45 days, but company says 25% on signing, 65% on delivery, and 10% on completion.

What is reasonable?

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Date/Time9/11/2013 at 12:43:00 PM

Sounds reasonable to me. I allow the customer to hold back 10% if requested to do so. If they don't ask I don't do it.

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Date/Time9/11/2013 at 1:10:31 PM

I have worked in the kitchen design and renovation business for over 25 years. And there is no 'Standard' per-say. Over the years company's have increasingly asked for more and more up front. The problem for them is if anything goes wrong they have a more and more difficult time collecting at the end.

For you the problem is if something goes wrong, well good luck because you've already paid 90% before they start. This to me is a giant red flag. Any company doing renovations asking for 90% up front before they start is really pushing the boundaries. You see legal action later on is a long murky road not stacked in your favor, it's long, complicated, expensive and highly unlikely to give anyone any kind of satisfaction.

Government laws state you are allowed to hold back a certain amount beyond completion in case there are any liens due to the contractor not paying his trades or suppliers. Besides any company unwilling to negotiate their terms is inflexible or has something to hide.


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Date/Time9/11/2013 at 1:52:06 PM

It all comes down on how comfortable you are with this company. As for my self and others I know we only do all materials up front. Then fifty percent half way through the job and the rest when completed.

And as for Cades Contracting we are only done and collect when u are happy and we are completed.

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Date/Time9/11/2013 at 6:23:10 PM

Most of my clients are word of mouth referals. And I have never had a problem with a client. Getting paid, or finishing a contract off properly. I have always returned for warranty work. And have only had one horrible client in well over twenty years of contracting.

Might I ask why you want to hold back 10% for 45 days?

I have never had a client ask to hold back final payment upon completion. Of course my clients always know I am just a phone call or text away. And I stand behind the work I and my people do.

Generally I pick up the material costs as a deposit, and on larger jobs I recieve payments as we go. With a 10% payment on completion.

Please, though. Get back a to me and explain why you wish to hold back for 45 days.


James Fram

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Date/Time9/14/2013 at 6:30:47 PM

I will tell you that I would never pay a contractor 90% up front for work that they have not even started. A deposit for materials and then weekly installments reflecting the progress of the work.

If this is a professional kitchen company, and you are satisfied at the completion, you cannot hold anything back at the end.

Does your employer hold back money from you?

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Arlene in London
Date/Time9/28/2013 at 2:26:50 PM

Thanks for the input.

Some of you asked why I wanted to make a 10% holdback . . . There are subcontractors involved, and I want to be sure they are paid. Re the 65% on delivery, I assume that includes installation. Guess I'd better check that, too!

Thanks again for taking the time to help me out.

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Arlene in London
Date/Time9/28/2013 at 2:32:24 PM

Hi Tony,

Re your comment "Does your employer hold back money from you?" Kind of . . . I have to put in 30 days work before the paycheck appears! lol. I have no problem whatsoever making payments as the work progresses.

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