Renovations payment schedule

Hey guys,

I am having my bathroom renovated at the moment. It is less than $20k and the renovator has requested the following payment schedule after already starting.

Commencement deposit ~10%
After demolition ~35%
After tiling had started ~40%
After completion ~15%

Is this normal? If not what would be?

Just nervous paying over 80% before the job is even finished

 

I agree, i'm not too familiar with how payments are made but i would change it to a minimum of 30% after job has completed.

 

That's a pretty defined schedule for a smallish job.
The two parties can agree to it as they choose

As long as you hold something at the end so you have security. And something at the start to get them going, the middle is up to you guys.

What's "after tiling has started" bloke lays one tile gets paid 85% of the job?? Demo is only a couple of days work and doesn't require him to buy anything, just labour

Needs looking at. Has he told you how he'll do the job? Then you two can work out when to pay Eg
Demo
Install bath vanity etc
Tile
Grout and finish

 

Demolition does have costs if the contractor is cleaning up. I agree, keep at least 30% until the last payment though so you have negotiating power if anything isn't up to scratch.

 

It's not specific enough for me. I'd be looking to lock in dates so that you know you're booked into a firm schedule and it doesn't drag on.

30% is a large amount to be withholding until after completion, but labour costs form the largest part of budget. PC costs will be upfront if they're supplying and if all items are on your property (in your posession) you shouldn't be at a loss. Most tradies are running very tight on cashflow but we always pay at weeks end anyway.

 

Thanks for the replies everyone.

I did negotiate to have 30% left over now he is saying 20% is as much as he is willing to settle with. I think it should be ok since they are half way through the tiling already.

Another thing I just got told to ask for is a waterproofing certificate. Should I be provided one or a certificate of renovation of some sort? I didn't think I needed it but googling I have found that it may be required to show council or as guarantee of work done?

Will post pics once complete

 

Last payment should be 20%.

My terms are 40% before commencing, 40% once carcasses installed and before stone is ordered, and 20% upon completion.