Construction Payment Schedule

by nillascaconstruction Uncategorized
  1. Down Payment (30%): Upon execution of the contract, the client shall submit a down payment equivalent to 30% of the total contract value. This payment serves to secure the contractor’s services and initiate project mobilization.
  2. Second Billing (30%): Following the commencement of construction activities, the contractor shall submit a progress report detailing the completion of 30% of the project’s scope of work. Upon verification and approval of this progress report by the client, a second billing equivalent to 30% of the contract value shall be invoiced.
  3. Finishing Phase Third Billing (35%): Upon reaching the finishing phase of the project and completion of 60% of the total scope of work, the contractor shall submit a comprehensive progress report for client review. Upon satisfactory review and approval, a third billing equivalent to 35% of the contract value shall be invoiced.
  4. Retention (5%): Upon successful completion and turnover of the project, including all punch list items addressed and final inspections passed, the client shall retain 5% of the total contract value as retention. This amount will be released to the contractor upon the expiration of the agreed-upon warranty period, provided all contractual obligations have been fulfilled satisfactorily.

Terms and Conditions:

  • All invoices shall be submitted in accordance with the agreed-upon billing schedule and shall include detailed documentation supporting the work completed.
  • Payments are due within 15 days from the date of receipt of invoice, unless otherwise specified in the contract.
  • Any disputes regarding progress reports or invoiced amounts shall be promptly addressed through mutual discussion and resolution.
  • Failure to make timely payments may result in suspension of work until payment is received, subject to the terms outlined in the contract.
  • The retention amount shall serve as security for the contractor’s performance and compliance with all contractual obligations, and shall be released in accordance with the terms specified herein.

This payment schedule is designed to ensure transparency, accountability, and mutual satisfaction throughout the duration of the construction project.