Payment Schedules

[lmiller]

What is the "typical" payment schedule? Is it a certain percentage up front, another percentage upon completion and the rest a week or two aftwards?

[XSleeper]

I'm sure everyone does it differently. The contracts our compnay writes are almost always 50% down, 50% upon completion.

[Window4U (IL)]

I do a 1/3 down, 1/3 when the job starts, and 1/3 when the job is done.

I seem to remember reading California having a maximum 10% down payment law. How do you guys out there deal with that? Do you get a big chunk when the job starts?
I'd be worried having to order let's say $13,000 in custom sized non-returnable windows for a $20,000 job and only being able to get $2000 down. Talk about contractor risk.

[lmiller]

In computers it's normal for the client to hold back 10 to 20% until sometime after the job is complete to ensure that they will resolve any of the problems. Since my project is only a 1 or 2 day job, I would think that 40% down, 40% when installation is finished and 20% 1 or 2 weeks later after I'm sure everthing is OK.

[randy]

I require 50% down, with the balance due upon completion, as is the case with every competitor of mine. This seems like a fair way to balance the risk between homeowner and contractor.

First the homeowners is taking the risk by handing over money with no windows, and then the contractor takes the risk by installing all of the windows and trusting the homeowner will pay the balance after everything is complete.

[XSleeper]

Perhaps you are misunderstanding what "balance upon completion" means. When a job is finished, our installers do NOT collect the final check from the homeowner. I'm sure that in most cases, homeowners will have a week or two to mail their final payment. Some companies will have someone who goes around to collect payments soon after the job is completed- not just to get the money, but also to ensure that everything is okay. But I would imagine that in the city, you might have 30 days before your balance becomes delinquent.

Any thoughts?

[windowmannjny]

a great payment shcedule is to leave a small deposit, open a home improvement account (assuming your contractor provides financing, larger companies usually do) and then defer the balance due for 90 days after completion to ensure all is terrific with your beautiful new windows. if your contractor does not provide financing, as with all big purchases see if he will accept a crdit card payment. if this is not the case either....1/3 deposit 1/3 when the job begins and 1/3 upon completion should be acceptable. If there is a small problem at the end of the job such as a ripped screen or a broken sash ,obviously nothing major i will ask my customers to hold back some of the last 1/3 but not all, try to be fair as we all have bills topay.

[FenEx]

We offer financing and accept all four major credit cards and debit cards. In any case, we take 1/3 upon acceptance of contract, and the balance upon installation along with a signed completion letter.

Windows aren't computers, and any computer I buy or have serviced requires full payment before it's even sent to me and plugged in. For programming and operational services, I pay when they are done. If I have a problem, they come back, If my customers have a problem, we go back. It is very fair and reasonable for a contractor to expect payment in full upon completion. That 20% that you want to sit on for a couple weeks is usually a significant part of the company's profit. I like the concept though, the next time I make a large purchase, such as a car or a house, or a computer or appliance, I'll offer them 80% and promise to send them the balance in a week or two.... or three... when I am sure there aren't any problems.