Hello all, I was wondering what is the typical "settling in" time that one usually does after a major, apartment-wide renovation (new everything). My contractor and I have a pretty typical payment schedule of 3 payments: one-third to be made upon entering contract (before work commences), one third about mid-way through, and the final third upon "satisfactory completion of the work." Now, that... [more]
Hello all,
I was wondering what is the typical "settling in" time that one usually does after a major, apartment-wide renovation (new everything). My contractor and I have a pretty typical payment schedule of 3 payments: one-third to be made upon entering contract (before work commences), one third about mid-way through, and the final third upon "satisfactory completion of the work."
Now, that term leaves a lot of wiggle room. I know some people who want to wait months to pay that final installment, which I think is not fair (provided the work is complete and without major error). But on the other hand, I don't believe it's wise to hand over the final check the day after the workers leave either.
Is there a 'usual'? After how many days/weeks/months is too long? I believe it would be prudent to, at the very least, allow time for new floors to settle, doorframes and moldings to sit, water to run through the new pipes, etc., etc.
What do you think? Renovators and renovatees welcome to respond :)
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Response by uptown_joe
over 9 years ago
Posts: 293
Member since: Dec 2011
Give it a month. Or until the end of the punch list. Is there a specific warranty in the contract, i.e. an obligation to come back and repair any defects within a year?
You could also renegotiate the terms and offer the next 15% shortly after substantial completion, holding a final 10% retainage for punch list and a reasonable shake-out period. 10% is a more typical retainage share and should be enough to motivate responsiveness without causing acrimony about the amount.
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Response by CR123
over 9 years ago
Posts: 35
Member since: Apr 2013
Hi there,
Thanks a lot for the reply! (anyone else??).
There is no specific language in the contract. The only thing that references final payment is that it's due upon "satisfactory completion of the work." Which, I guess, leaves the ball in my court. But your advice seems on target.
Anyone else? How long did YOU wait before paying your contractor the final difference of the bill? :)
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Response by Primer05
over 9 years ago
Posts: 2103
Member since: Jul 2009
The contractor should be paid in full as soon as the punchlist is complete. All repuatable contractors will come back if you have some sort of problem. I am surprised the contractor left 33% until the end. In the 15 years I am in business not one client has waited to make final payment. If you feel it necessary to wait to see if anything goes wrong at least pay the contractor most of the money owed and keep 5% of the total contract but I don't feel thats right. If they are finished they should get paid. Did they do a good job? Do you have a good relationship?
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Response by CR123
over 9 years ago
Posts: 35
Member since: Apr 2013
Did they do a good job? That has yet to be seen (not done yet). But suffice it to say that it has gone on waaaay (yes, really way) past schedule, and certain people (contractors) involved have refused to acknowledge the issues, and have handled the dialogue and process unprofessionally and without any trace of "cordialness."
But besides all that, I more just wanted to get an idea of what is common and usual. I guess it's kinda all over the map....?
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Give it a month. Or until the end of the punch list. Is there a specific warranty in the contract, i.e. an obligation to come back and repair any defects within a year?
You could also renegotiate the terms and offer the next 15% shortly after substantial completion, holding a final 10% retainage for punch list and a reasonable shake-out period. 10% is a more typical retainage share and should be enough to motivate responsiveness without causing acrimony about the amount.
Hi there,
Thanks a lot for the reply! (anyone else??).
There is no specific language in the contract. The only thing that references final payment is that it's due upon "satisfactory completion of the work." Which, I guess, leaves the ball in my court. But your advice seems on target.
Anyone else? How long did YOU wait before paying your contractor the final difference of the bill? :)
The contractor should be paid in full as soon as the punchlist is complete. All repuatable contractors will come back if you have some sort of problem. I am surprised the contractor left 33% until the end. In the 15 years I am in business not one client has waited to make final payment. If you feel it necessary to wait to see if anything goes wrong at least pay the contractor most of the money owed and keep 5% of the total contract but I don't feel thats right. If they are finished they should get paid. Did they do a good job? Do you have a good relationship?
Did they do a good job? That has yet to be seen (not done yet). But suffice it to say that it has gone on waaaay (yes, really way) past schedule, and certain people (contractors) involved have refused to acknowledge the issues, and have handled the dialogue and process unprofessionally and without any trace of "cordialness."
But besides all that, I more just wanted to get an idea of what is common and usual. I guess it's kinda all over the map....?