Hi,
I'm about to sign a contract with a builder for my flat renovation project. It is a relatively big project (£80k + VAT, 16 weeks). I have a few questions regarding contract and payment schedule. All suggestions are welcome!
a) My builder prepared a FMB contract. Is FMB contract ok or should I insist a JCT contract?
b) For this 16-week project, the payment schedule proposed by my builder is:
I feel a 25% upfront payment is a bit too much, and also the payment schedule is like I'm paying for the work to be done, rather than the work done.
Any suggestions are welcome. Thank you so much!
thanks
Patrick
I'm about to sign a contract with a builder for my flat renovation project. It is a relatively big project (£80k + VAT, 16 weeks). I have a few questions regarding contract and payment schedule. All suggestions are welcome!
a) My builder prepared a FMB contract. Is FMB contract ok or should I insist a JCT contract?
b) For this 16-week project, the payment schedule proposed by my builder is:
- 25% on week 1
- 25% on week 5
- 25% on week 9
- 22.5% on week 13
- 2.5% after snagging.
I feel a 25% upfront payment is a bit too much, and also the payment schedule is like I'm paying for the work to be done, rather than the work done.
- I was wondering whether I should ask my builder to provide a list of key project milestones and tie the payment schedule to each milestone, something like
- On commencement £X
- On finishing demolition £X
- On finishing joist work £X
- ...
- On completion £X
Does that sound reasonable?
- While the payment schedule allows for 2.5% after snagging, the contract says 0% retention. Should I ask the contract to be modified to allow for a 2.5% - 5% retention, to be paid by the end of a 6 or 12 month defects liability period?
Any suggestions are welcome. Thank you so much!
thanks
Patrick