Progress Payment Schedule
Forget 1/3, 1/3 & 1/3
Many years ago thru an educational training for contractors we were introduced to the system of using a Progress Payment Schedule (or Milestone Payments) instead of the more commonly know 1/3, 1/3 and 1/3 method.
At first the idea of seeing something out of “the norm” (or what they think they should be seeing) for contractors throws some homeowners off, but once a homeowner understands the system we rarely have a client complain.
So what is the Progress Payment Schedule? It is a break down the cost of the entire remodeling projects into small chunks. Enough so that we can cover the expenses that are coming up: bills, deposits, special orders…but never so much that we are too far ahead of a client and vise versa.
Too often we hear the stories from people that “the contractor took a huge deposit and we never heard from them again”. My hope is that is utilizing the Progress Payment Schedule it gives homeowners another layer of comfort when remodeling.
Here is an example of what you might see as one of our Progress Payment Schedules:
| Payment: | When Due: | Amount: |
| Initial Payment | Contract is signed | $XYZ.00 |
| Building Permit Costs | TBA | |
| Start of Deck work | $ XYZ.00 | |
| Start of Door work | $ XYZ.00 | |
| When Siding is Delivered | $ XYZ.00 | |
| When Siding is half installed | $ XYZ.00 | |
| Final Payment | When work is completed | $ XYZ.00 |
Our team has been in Hanover for almost 20 years and serving families on the South Shore for over 65 years. And it is important to us that everyone works together to create the best possible remodeling experience. Understanding the Progress Payment Schedule for your remodel is an important first step.
