Construction Payment Schedule
Down Payment (30%)
Upon signing the contract, the client provides a down payment equal to 30% of the total contract value. This payment secures the contractor’s services and initiates project mobilization.
Second Billing (30%)
After construction begins, the contractor submits a progress report showing the completion of 30% of the project’s scope. Once the client verifies and approves this report, the contractor issues an invoice for the second billing, amounting to 30% of the contract value.
Finishing Phase Third Billing (35%)
When the project reaches the finishing phase, with 60% of the total work completed, the contractor provides a detailed progress report. After the client reviews and approves this report, the third billing invoice is issued, covering 35% of the contract value.
Retention (5%)
Once the project is completed, including the resolution of all punch list items and the passing of final inspections, the client retains 5% of the contract value as a performance guarantee. This amount is released after the agreed-upon warranty period, provided all contractual terms are met.
Terms and Conditions
Billing and Documentation
- The contractor submits invoices according to the agreed schedule and includes detailed supporting documentation.
- Payments must be made within 15 days of receiving the invoice unless otherwise specified in the contract.
Disputes and Resolutions
- Any disputes about progress reports or invoice amounts will be addressed promptly through mutual discussion.
Consequences of Late Payments
- If payments are delayed, the contractor reserves the right to suspend work until the payment is received. This is subject to terms outlined in the contract.
Retention and Warranty
- The retention amount ensures the contractor’s compliance with all obligations.
- Retention is released after the warranty period expires, provided all conditions are fulfilled satisfactorily.
Designed for Transparency and Trust
This payment schedule promotes clear communication, accountability, and mutual satisfaction throughout the construction project.
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.
