Originally Posted by
Thai Dhupp
I'm not sure about BiP' build, but for us. K.Pot gave us the initial contract price, and I then divided the work into stages.
Stage payment was an equal sum, and paid only on COMPLETION of the stage (i.e in arrears). Therefore, incentive was built in to encourage completion. The stage completion had to be agreed and both parties sign off before the stage cash was provided.
The first stage, piling and slab was paid equally even though the work was relatively cheap, to give him a little working capital for those ongoing purchases.
The killer clause I included was the retention to be paid 6 weeks AFTER agreed completion to allow for snag list rectifications.
This had a 3- fold effect.
1. it was a large chunk of his profit
2. he only got it once the completion was AGREED and the snagging list was rectified and the time had expired - minimum 6 weeks no matter what, but could extend if snags not fixed.
3. he had an incentive to close out even the last, small work at the same quality to avoid snags which might ultimately delay that last retention payment
That's how we did it, anyway....