Standard payment schedule for pool construction

[Axxlrod]

Hello. We're having a pool built soon, and the PB contract calls for progress payments to be made at these intervals:

30% Day 1 of Excavation
30% Day 1 of shotcrete
30% Day 1 of coping/tile
Full remaining balance at Day 1 of interior finish

So PB expects 100% payment before water is even added to the pool.

I'm fine with the first 3 payment intervals, but not the last interval.

I proposed the remaining balance to be paid at job completion including punch list. Waiting to hear back.

Is there a standard payment schedule for the pool industry?

 

[Newdude]

Sadly it's whatever they demand. You can say no and there's a dozen people willing to secure that build date.

There's no harm in trying. A reasonable builder may work with you.

Or you can try others instead.

I opted for the right builder instead of the right payment schedule. When the sub crews were a disaster, the PB stopped asking me for money from the payment schedule. When I went in on my own many weeks later to pay, they told me I could take as long as I needed.

 

[ajw22]

There are no standards in the pool industry. It is the wild wild west.

Don't let the builder get ahead of completed work. Holdback 5%-10% until the pool is fully functional and accepted by you.

Progress payments should pay for completed work.

50% down payments for equipment he needs to order then full payment when equipment delivered to you and you take possession of it.

Builder gets paid his profit at end of job.

You don't want builder living on your deposits before the pool is completed.

 

[JamesW]

How much is the total amount?

You have to decide what you are comfortable with including how much you trust the person.

Have you done your due diligence on the contractor including visiting or calling at least 3 references to see their pools?

Have you verified that their contractor’s license is in good standing with no complaints?

Have you verified their insurances like liability, worker’s compensation etc?

Have you done an internet search to review reviews from places like Yelp, Google, BBB etc?

I would want a performance or completion bond with detailed quality specifications and detailed promises for timeframes to complete everything.

I would counteroffer.

20% Completion of Excavation

20% Completion of shotcrete

20% Completion of coping, tile and all equipment.

20% when the pool is full and 100% operational.

20% 1 month after the pool is complete.

Completion Bond: What it Means, How it Works, Examples

A completion bond is a financial contract that ensures that a given project will be completed even if the contractor runs out of money.

www.investopedia.com

 

[JamesW]

Have you verified that their business license is in good standing?

Have you verified that their corporation is in good standing with the state?

 

[JamesW]

There is really no standard schedule.

I would suspect that the project is probably in the $100,000.00 range and you are understandably nervous about paying out a lot of money before the job is complete.

There is always the possibility that the contractor will never finish the project or do it incorrectly, so you are taking a lot of risk if you don’t have some sort of assurance like a Completion or Performance Bond and/or Professional Liability Insurance.

Professional Liability Insurance, also known as errors and omissions insurance (E&O), is different from regular liability insurance in that is covers mistakes made in professional judgment or performance.

You should also know who will be the subcontractors for the project and you also need to vet them just as much as the main contractor.

 

[Axxlrod]

Thank you all for the info/questions.

I was recommended this PB by a friend who is happy with the pool the PB built for him. The PB also has very good yelp/google ratings. The proposed cost is just under $100K.

The PB got back to me and said they changed to this payment schedule as a few clients refused to make the last payment once the pool was filled.His counter 5% at start of pebbletec, and remaining balance in full at end of punchlist. I can live with that.

I'll make a new build thread soon.

 

[shrek5701]

I just did my pool and it was as follows this was dictated by the finance company I used and payment were made direct to build after he submitted pictures and you signed off on accepting that stage of work.

25% at Excavation

25% at Gunite/

25% at Decking

25% at Completion of Project