ᐅ Payment before or after completion of a construction phase?

I found various opinions on this and would like to know how this issue was handled contractually or possibly renegotiated in your cases.

According to our construction contract, we always pay first, and then the next phase of construction is completed. So, our payments are always made in advance.

Based on the assessment of a friend with industry experience, this is not uncommon, but he would try to renegotiate it. An invoice that has already been paid is no longer a "lever" for negotiation.

How was it handled in your experience?

Not only that... if the contractor goes bankrupt, you are left without a roof and without money for the roof... Payment should be made after the work has been completed.

I would never make an advance payment either. We have now received an invoice that is a staggering 50% higher than the work completed so far. This can be accurately verified by comparing it to the offer/order. We will reduce the invoice accordingly and send the contractor a letter.

Mizit schrieb:

According to the construction contract, we would always pay first.

What exactly do you mean by "what"?

Regards, Bauexperte

The law is clear.

Section 632a of the Building Code: The contractor is required to render performance in advance.

Payment is therefore made after the service is provided.

Mizit schrieb:


According to the contract with the manufacturer, we always pay first and then the next construction phase is completed. Our payments are therefore always made in advance.
?

I find that hard to believe. Doesn’t your payment schedule list the trade or work stage alongside the percentages you pay?
At the beginning, planning is often listed, which makes many think they are paying upfront.
Could you please post your payment schedule anonymously?