Contractors Draw Schedule

[salferg]

Anyone know what percentages a contractor generally requires for the draw schedule?

[Bryan]

There is no iron clad rule. This is an item that you negotiate with the contractor. They, of course, want as much as possible as soon as possible while you would prefer to pay as little as possible for as long as possible. A couple of finer points though - advance payment should be none or nearly so. Chose "milestone" payments that make sense to you and that you can easily check (i.e. slab poured, roof joists in place, etc.). Make the contract include a start and completion date. Final payment AFTER completion should be no less that 25% of total contract. Do a good final inspection, make sure you have all necessary paperwork in your hand (Building Permit, Certificate of Occupancy, ARC approval, etc), make sure all subs have been paid or you have a Release of Lien form from the general contractor, make sure all items on your 'punch list' are done, make sure work site is cleaned up and trash hauled away, and when you are completely happy, make that final payment to the contractor.

[buzzy]

We are having Randa Services enclose the lanai. 10% to start the project. 40% after framework is installed, to order the windows. Balance on completion.

Having tile and laminate done by Village Flooring. 1/3 down to order the materials. Balance on completion.

[Mallory Voice]

Anyone know what percentages a contractor generally requires for the draw schedule?

Having completed a very large and expensive addition to our home the draw schedule we used with Excel Construction (which did a very good job) was no money down until all footings were poured & exterior walls up (30%), then 40% once sheetrock/electrical installed, 20% when the A/C was installed. We held out 10% until all finished work was completed and we did a walk thru to our satisfaction. EXCEL Construction is a very good company owned by good honest folks.
MV

[salferg]

Thanks to all of you for the info. Appreciate the info!