ᐅ Payment before or after completion of a construction phase?

Created on: 22 Jul 2016 21:04
M
Mizit
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?
B
Bauexperte
3 Aug 2016 11:30
MarcWen schrieb:

Of course, that also depends on how confident your provider feels.
Nope.

Regards, Bauexperte
MarcWen3 Aug 2016 11:33
Bauexperte schrieb:
Nope.

Regards, Bauexperte

Why? Do you really think that it will then be handled on a personal level?

You have such a cute dog, we will adjust the payment plan according to your wishes.
B
Bauexperte
3 Aug 2016 11:43
MarcWen schrieb:
Why? Do you really think something would only work through the human side?

Nothing will "work" unless the control center agrees. Cute four-legged creatures don’t change that at all.

Regards, Bauexperte
M
Mizit
8 Aug 2016 20:48
Of course, in such matters the headquarters will be the main point of contact. A funny play on words. The initial customer consultation probably won’t be affected by the payment plan itself, since it doesn’t change their earnings either way.

At the moment, I can’t assess how crucial this point will be for us regarding the specific question of whether to sign or not. We aren’t realistically expecting a bankruptcy; otherwise, we would likely withdraw from a building project with them. However, if they show no flexibility at all, that wouldn’t be very customer-friendly.