Design and Construction Progress-Based Payment Schedule

[David B.]

Any feedback on this progressed-based payment schedule for a $450K remodel project?

Should there be more specific milestones like flooring, appliances etc? Possibly withhold a little more for job completion? Maybe 15%.

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2.5% upon commencement of schematic and engineering design ($11,250)

2.5% upon completion of schematic and engineering design ($11,250)

2.5% upon completion of construction drawings ($11,250)

2.5% upon obtaining all necessary approvals of plans ($11,250)

Total: 10% out ($45,000)

5% upon commencement of demolition work ($22,500)

5% upon completion of all demolition work ($22,500)

Total: 20% out ($90,000)

10% upon commencement of foundation work ($45,000)

10% upon completion of all foundation work ($45,000)

Total: 40% out ($180,000)

10% upon commencement of framing work ($45,000)

10% upon completion of all framing work ($45,000)

Total: 60% out ($270,000)

5% upon commencement of plumbing work ($22,500)

5% upon commencement of electrical work ($22,500)

5% upon commencement of insulation work ($22,500)

5% upon commencement of drywall work ($22,500)

5% upon commencement of tile work ($22,500)

5% upon commencement of roof work ($22,500)

Total: 90% out ($405,000)

10% upon completion of customer punch down list and job completion ($45,000)

Total: 100% out ($450,000)