Payment Schedule...Would appreciate opinions!

[BlueSpool]

Hi All,

My husband and I have been thinking about building a pool for the last couple of years and have recently found a pool design that we love, and we also really like and enjoy working with the designer. There are some very questionable reviews about the company but the more research I do the more I'm finding that almost all pool builders in the DFW area have at least a few negative reviews lately. (I've heard that many pool builders took on too many customers and that's the source of many of the issues but I don't know if that's accurate or not.) My question is about the draw schedule; it seems at least a little out of line with other payment schedules I've seen. The draw is as follows:

$2000 upon execution of contract.
40% on first day of excavation
40% on first day of concrete-gunite installation
15% on first day of deck framing
5% before the pool plaster begins

I would love to get some feedback here before we talk to our designer. Thank you!

 

[mknauss]

Welcome to the forum.

I would want to keep at least 10% to the end after full release to pool owner. That schedule you show leave you zero leverage for issues at the end.
A good wiki article to review.

Construction Best Practices - Further Reading

www.troublefreepool.com

 

[ajw22]

So they propose you paying 100% before any equipment is delivered, connected, and the pool demonstrated it is satisfactory to you and everything working correctly? What about coping installation? Decking?

No way would I agree to that.

And I pay after I see an item like gunite or plaster is completed satisfactorily, not before.

If a Pool Builder does not have the financial capability to pay his subs and needs my money before I have no interest in dealing with him. It is too easy for the PB to leave you with shoddy work when you paid for it upfront.

 

[Vukota12]

A certain National Chain requires 95 percent upfront with typical adverse affect on the customer.

 

[BlueSpool]

Welcome to the forum.

I would want to keep at least 10% to the end after full release to pool owner. That schedule you show leave you zero leverage for issues at the end.
A good wiki article to review.

Construction Best Practices - Further Reading

www.troublefreepool.com

Yes we would have zero leverage at the end...And yep that really bothers me. In general, will most pool builders negotiate on their draw schedule and percentages? As a way of life we do try to negotiate with contractors we work with...Some are willing to and some aren't. We have no experience with negotiating with pool builders.

 

[BlueSpool]

So they propose you paying 100% before any equipment is delivered, connected, and the pool demonstrated it is satisfactory to you and everything working correctly? What about coping installation? Decking?

No way would I agree to that.

And I pay after I see an item like gunite or plaster is completed satisfactorily, not before.

If a Pool Builder does not have the financial capability to pay his subs and needs my money before I have no interest in dealing with him. It is too easy for the PB to leave you with shoddy work when you paid for it upfront.

I hadn't even thought about when the equipment would be delivered. I hate the thought of walking away but I don't think we can sign the contract as-is.

 

[BlueSpool]

A certain National Chain requires 95 percent upfront with typical adverse affect on the customer.

It's a local builder, although they are fairly good size, I think they only build in the DFW area.

 

[Vukota12]

It's a local builder, although they are fairly good size, I think they only build in the DFW area.

Don’t like the one sided aspect of payment schedules.

 

[ajw22]

We agree on the major tasks...

• Excavation
• Rebar
• Plumbing rough in
• Gunite
• Tile
• Coping
• Plaster
• Deck
• Equipment delivery
• Electrical
• Equipment operational

Builder gets 1/3 at the start of the task and 2/3 at completion. Amount based on his cost for the task without profit. 20% of job cost is held back which is builders profit and 10% paid upon acceptance of pool with water in it and all equipment operational and last 10% paid 2 weeks after.

You negotiate from there. Builder gets paid on costs incurred as job progresses but he does not eat with his profit until job is completed satisfactorily.