Money down

[BillH52]

Seems as though I've seen commentary on this topic before, but can't find it now that I need it.

When arranging payment of the contractor, is there a 'normal' % of funds due and at what point as the project proceeds?

Thanks,

BillH52

[thaifly]

its a gidday bill..its the thaifly from mae rim...cobber have a look at LEGAL AND FINIANCE..index page....in most cases the builder will give you a copy of his contract with quote translate to english..rule a very good eye over it ..throw in rider clauses if that is needed to please your side of it..pay in small chunks..when milestones are met saving the biggest chunk on handover...dozer and the thaifly had a discussion in a post somewhere on C.T.H. ABOUT CLEANING UP THE SITE.we agreed a small milestone could be written into the contract to take care of this ..... as cobber they leave everything in a mess that you would nt believe possible...just a very good tip bill..if your builder starts wanting advances on the milestones agreed THE RED FLAGS ARE UP BIGTIME..ASk C.T.H. at anytime of your contracts which give you concern....our members will i am sure come to your assistance..its a GOOD OIL OF A GIDDAY TO ALL...its the thai fly from mae rim

[dozer]

if your builder starts wanting advances on the milestones agreed THE RED FLAGS ARE UP BIGTIME

Yes I tend to agree with this although they always seem to want to get money out in advance. Hold the line the best you can. The other thing which is really important to realize is that you need to be there during and at milestone completion. The contractor expects it to be verified and signed off before proceeding, as in if after accepting the milestone you later find out something was wrong ... more difficult to correct it as the interim steps have occurred.

there a 'normal' % of funds due and at what point as the project proceeds?

This can be discussed with the builder the only red flag normally is when they want more than about 10% up front (labor only) or 25% - 30% up front (labor + materials). If you want to minimize the amount of upfront get started money on a labor + materials mid you can add in more milestones so the outlay for initial materials is less.

[BillH52]

LEGAL AND FINIANCE

Thanks! Didn't look there.

BH

[dozer]

moderation note: topic moved from general to legal and finance.

[thaifly]

Yes I tend to agree with this although they always seem to want to get money out in advance. Hold the line the best you can.

yes .... hold the line the best you can. by all means .. but have your safety catch in OFF POSITION.. finger on the trigger ..ready to fire..
its a BE CAREFUL GIDDAY TO ALL ...ITS THE THAI FLY FROM MAE RIM

[jazzman]

The paradox is that very often a contract can be worse than not having a contract at all. First off, a 'contract' with a rag-tag bunch of local farmers professing to be builders is of no value at all as they probably don't have a corporate identity. Secondly, a contract is no guarantee of quality of workmanship, whoever the company is. Thirdly, there is no such thing as a 'standard' contract. Finally, contracts provided by construction firms generally do not have enough small print (although we all hate bureaucracy) to cover all eventualities and the cleverer service providers might use these loopholes.

The solution is to get several quotations, ask to see the builders' 'standard' contracts before committing yourself, and then post back here for advice from CTH members if you are left doubting anything.