# Pay schedule for fixed price contract



## kdub1777 (Apr 8, 2006)

What is your company's normal procedure for collecting pay on a fixed price contract? Say you are building a house from the ground up for $150,000 total. What % of the cost and at what points do you charge the homeowner?
What is your common payment schedule?


----------



## kdub1777 (Apr 8, 2006)

What is everyone's draw schedule?


----------



## Crock (Mar 8, 2009)

Bank will let you know!!


----------



## buildpinnacle (Sep 2, 2008)

Kdub,

This is fairly commonplace.


----------



## dubz (Sep 8, 2008)

DRAW SCHEDULE I (Four Advances)
15% Site preparation, footer, basement walls, parged and pitched, if applicable, 1st floor joists, plate and plywood decking down.
30% Framed, sidewall sheathing, and under roof, including shingles. Interior walls studded, windows and exterior doors in place.
Roughly plumbed and wired.
35% Heat plant and ductwork installed, basement floor poured, insulation, sheet-rock, plastered. Exterior walls finished, soffit and
spouting. Fireplaces, if applicable, stairways roughed in, and carpet/linoleum underlayment installed.
20% Interior trim installed and finished, all cabinetry installed and finished, bath fixtures, interior doors hung, light fixtures, storms if
applicable, floor covering. Graded, seeded and landscaped as per contract.

DRAW SCHEDULE II (Three Advances)
35% When the foundation is in, building is rough enclosed and under finished roof.
40% When rough plumbing and electrical are completed, when exterior and interior walls are complete
25% When property is entirely completed per plans and specifications.

DRAW SCHEDULE III (Four Advances)
15% When foundation is in, when sub-flooring is in.
30% When rough enclosed and under finished roof, rough plumbing and electrical are complete.
30% When house is insulated, exterior and interior walls are completed.
25% When property is entirely complete per plans and specifications.

DRAW SCHEDULE IV (Four Advances)
10% Upon completion of excavation and foundation.
30% Upon completion of sub-flooring, exterior walls (enclosed), finished roof, all windows and exterior doors installed.
40% Upon completion of roughed-in wiring, roughed-in plumbing, roughed-in heating (includes delivery of central heating plant),
installation of dry wall or plasterboard, sewer or septic system and drain-field installed, finished exterior walls and concrete
basement floor.
20% Upon completion of dwelling per plans and specification.

DRAW SCHEDULE V (Five Advances)
15% When foundation is in and 1st floor joists are set.
15% When sub-flooring is in, building rough enclosed and under roof.
20% When under finished roof, rough plumbing and electrical are complete.
25% When house is insulated, exterior and interior walls are completed.
25% When property is entirely complete per plans and specifications.


----------



## kdub1777 (Apr 8, 2006)

Thanks all


----------



## ACTRenovator (Jan 1, 2007)

We tell the bank what we are doing in regards to payment schedule! And they follow.

The usual schedule is this:

1. Deposit at signing of Contract - 5%
2. Floor level complete - 20%
3. Roof trusses installed - 20%
4. Ready for plaster linings - 25%
5. Painting complete - 25%
6. Practical completion - 5%

Variations are paid by client during the job at the following progress claim after it was signed.


----------



## SDC (Jan 12, 2009)

I used to do "Start of" on my proposals, I went to a seminar by Shawn McCadden, from Remodeling Mag. He says try it this way, makes sense to me as well. 
My pay schedule now says; "Ready for etc", 
This way I get a payment when ready, it does not mean the last phase is 100% complete, just the next is ready. It has work well no complaints. :thumbsup:

OK now I am ready to be ripped...:whistling



Total Investment $24,970.00​ Deposit $4,000.00​ Start of Job $4,000.00​ Ready for Rough Plumbing $4,000.00​ Ready for Rough Electrical $4,000.00​ Ready for Tile Installation $4,000.00​ Ready for Painting $4,000.00​ Substantial Completion $970.00​​
​
​


----------



## rbsremodeling (Nov 12, 2007)

SDC said:


> I used to do "Start of" on my proposals, I went to a seminar by Shawn McCadden, from Remodeling Mag. He says try it this way, makes sense to me as well.
> My pay schedule now says; "Ready for etc",
> This way I get a payment when ready, it does not mean the last phase is 100% complete, just the next is ready. It has work well no complaints. :thumbsup:
> 
> ...


I do mine in a similar fashion.


----------



## VBuilt (Oct 7, 2007)

Just posted one I use to file swap


----------

