Interior Fit Up - Deposit

[Castrovinci]

Hi,
We just starting working on the NEW install side / Retrofitting side as we have always done regular service work. We just put a bid in on an interior fit up and won the bid. This GC does not provide a down payment but progressive....45% midway, 45% (2) weeks from completion then the 10% on closeout. Is this industry standard with no deposit for a fit up. The company has been doing these fitups for over 20 years and I don't see any negative reviews or rip off reports. My gut wants to tell them no work unless deposit but I really don't know if this is standard. Thanks!

 

[controlled]

Hi,
We just starting working on the NEW install side / Retrofitting side as we have always done regular service work. We just put a bid in on an interior fit up and won the bid. This GC does not provide a down payment but progressive....45% midway, 45% (2) weeks from completion then the 10% on closeout. Is this industry standard with no deposit for a fit up. The company has been doing these fitups for over 20 years and I don't see any negative reviews or rip off reports. My gut wants to tell them no work unless deposit but I really don't know if this is standard. Thanks!

I think all areas are different. We are a Canadian company in Ontario. All construction projects are governed by provincial regulations. We send in a progress draw monthly. The value is estimated based on % of work completed that month. Each draw has 10% held back until the entire project is complete. Draws are paid out anywhere from 45-90 days after invoice. We never get a down payment.

 

[petersonra]

Hi,
We just starting working on the NEW install side / Retrofitting side as we have always done regular service work. We just put a bid in on an interior fit up and won the bid. This GC does not provide a down payment but progressive....45% midway, 45% (2) weeks from completion then the 10% on closeout. Is this industry standard with no deposit for a fit up. The company has been doing these fitups for over 20 years and I don't see any negative reviews or rip off reports. My gut wants to tell them no work unless deposit but I really don't know if this is standard. Thanks!

Short of some state law prohibiting it, the parties involved can make whatever contractual arrangements they can agree on for payment.

We get all kinds of terms. Everything from mostly upfront to mostly 90 days.

if the payment terms are out there it won't happen unless the customer is known to be solvent and a regular customer.

 

[brantmacga]

We don't get a "down payment", but if I have to order fixtures and gear, I'm billing that at the start (or whenever I need to order them) and invoice as stored materials. I submit my own schedule of values and invoice based on that. 10% hold back is standard.


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Down Payment

Down Payment

Receiving a down payment is somewhat rare in the commercial / Industrial markets. Typically, we use the AIA G703 forms to apply for payments based on percentage complete.
Now this can be a negotiated item in your contract and payment terms and is more common in residential and some commercial project under $45K.
Trust me, we all would like down payments, however it's not to common among most commercial projects.

Good Luck