payment schedule for building renovation

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mtnelectrical

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Essex, New Jersey
I am small EC 2 men shop with some temps at busy season. I got my first building rehab with 21 apartments. All new wiring and service. How do you guys set the payment schedule for jobs like this? Any help is greatly appreciated.
 
I would bet that there are as many different answers as there are different contractors here. Congratulations on getting a good size project. Hope it goes well for you.
 
What Bob said.

It varies with EC, area, client, etc...

But not completely atypical might be:

10% upon signing contract.

Remainder 90%

Service, pass inspection, 1/3 paid

Rough in, pass inspection,1/3 paid

Finish, final inspection, 1/3 paid

This would be per apartment.

As a consumer, I have agreed to this or similar for hiring contractors.
 
Be sure to get as much of a down payment as you possibly can . Is a good place to start and then monthly billing as others have mentioned

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It really depends on what the GC is willing to accept for terms, and how aggressive his schedule it. I'd bill weekly with most of my contractors if it is on the fast-track. In a month, you could have 21 apartments roughed in. Or maybe they are only doing one a week, in which case monthly billing would be acceptable to me. You'll never be up on them, but don't let them get too far ahead of you.
 
mtnelectrical said:
I am small EC 2 men shop with some temps at busy season. I got my first building rehab with 21 apartments. All new wiring and service. How do you guys set the payment schedule for jobs like this? Any help is greatly appreciated.
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As others said, it totally depends on what the GC will accept. However, the more you break it out, the less possibility there is for them to dispute a pay application and basically for you to overbill. I believe that you should put your profit in the early billing items, because retainage is held out of all. Try this. Look at how you are going to do the work. By building, by apartment, by task for the entire project? And then do you breakout based on that.
 
mtnelectrical said:
I am small EC 2 men shop with some temps at busy season. I got my first building rehab with 21 apartments. All new wiring and service. How do you guys set the payment schedule for jobs like this? Any help is greatly appreciated.
Click to expand...


Are there not plans and specs on this job?

Specs always outline payment schedules....usually monthly progress payment broken down on AIA schedules
 
Schedule of values with the contract ...... load the front end. Bill 100% for stored materials (fixture & gear packages ).


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