Contracting payment

[tom baker]

Getting bids from mechanical contractor to replace heat pump. I would like to pay 90% on startup of unit and then remainder 10% after mechanical and electrical pass inspection. Is this an acceptable practice?

 

[kwired]

Disclose those terms in bid notices and you may find out depending on whether anyone wants to bid or not?

 

[Another C10]

Is this an acceptable practice?

I suppose to me it would depend on the size of the job and the timeframes between the 2 or 3 stages ( Rough, Finish and Inspection )

If it was a quick job, say 1 week and I knew them or worked with them before I'd pay them upon completion and call them back out if there was an inspection issue.

If its a jobs taking months with several stages then I'd pay them accordingly per stage. Rough / Pre finish / Inspection 50/ 30/ 20 or 60/20/20.

90/10 seems odd to me .. maybe 75/25 or 80/20

 

[romex jockey]

Few contractors are giving out solid $$$'s this spring

~RJ~

 

[hillbilly1]

Getting bids from mechanical contractor to replace heat pump. I would like to pay 90% on startup of unit and then remainder 10% after mechanical and electrical pass inspection. Is this an acceptable practice?

If they are just replacing the mechanicals, most do it in one day, if major changes to the ductwork, two at the most. At least around here.

 

[ptonsparky]

I would pay by return mail and also call them if there is an issue.
FWIW, we have no inspection requirements for this type of work.

 

[gadfly56]

In NJ contractors can't collect the final payment until after a successful inspection for permitted work. We typically tell our customers that 90% is due before the final inspection, and once the final is passed, the last 10% is due in 30 days.

 

[tom baker]

This is about a $7K job, existing duct work, replacing outside and inside units. Elect and mech permit required. Last mech job I had to pull permit for contractor.

 

[coffeebean]

The New Jersey Division of Consumer Affairs Rule:
N.J.A.C. 13:45A-16.2(a)10.ii
Final payment to the contractor is not required to be made before a final inspection is performed

 

[goldstar]

This is how I would do it :
$3500.00 upon acceptance and signed copy of contract
$2800.00 upon completion of work
$ 700.00 upon inspection and approval by municipal official

You can juggle the numbers and make the final payment a smaller amount if you choose to. Just my 2 cents worth.

 

[gadfly56]

This is how I would do it :
$3500.00 upon acceptance and signed copy of contract
$2800.00 upon completion of work
$ 700.00 upon inspection and approval by municipal official

You can juggle the numbers and make the final payment a smaller amount if you choose to. Just my 2 cents worth.

For "parts & smarts", our typical is 30% on signed contract, 30% on substantial delivery of material, 30% before the final, and the last 10% within 30 days after the final.