![]() ![]() "There are no questions about when payments are due, and there is enough being paid early on to buy required products. "This format is the absolute best for the remodeler," Bawden says. ![]() Some clients prefer this method because it smoothes out payments and ensures that they know how much is due when. These consist of a one-third initial payment and then smaller, usually equal payments made every two weeks during the course of the project, based on the estimated time the project will take. Week 13: 2 percent due on completion of the final punchlist.Week 1: 25 percent due when contractor begins work, defined as delivering materials or performing labor, whichever occurs first.Here are the three Bawden uses in his business: The key comes in knowing the pros and cons of each for both the remodeler and customer and being able to offer options that meet the client’s personality traits and comfort level. In general, Bawden has found that one of three payment schedules appeal to his clients. At the same time, he ensures that he receives the payments he needs so he can complete the job and keep his suppliers happy. With 22 years of experience, an undergraduate degree in psychology, and a law degree, Bawden has learned how to adapt his payment program to reassure clients that they remain in control. "And that’s true of both sides-I’m worried about being paid so I can maintain my cash flow, and the client is worried about paying too much too soon and losing control." "There’s no more emotional aspect in remodeling than the fear generated over paying the money," says Bawden, owner of Legal Eagle Contractors Inc., in Houston. And receiving that last check, even though it’s for a relatively minor amount, can be the most difficult part of the entire project. Reaching an agreement on how much and when money will be paid remains a delicate situation. Key to success: "Good communication is vital.".Type of company: Full-service residential remodeling company.Working out that schedule took nearly as much negotiating as the rest of the agreement. the work, whereas our approaches are designed to be a little ahead so we can use the payments to continue buying products," Bawden says. ![]() "She wanted to control the draws completely and be sure we weren't ahead in payments vs. When it came time to sign the contracts, there was only one remaining concern: how the money should be paid. Dan Bawden, CGR, and his client agreed on everything: design, products, scheduling and even price. ![]()
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