Payment terms: $1,000.00 down payment. 50% due upon start of Installation (billing at end of day 1st day). Remaining balance due at completion of Installation.
2 replies
Aug 25, 2021
Assuming this is a Home Improvement Contract, you cannot have the payment terms as specified. Pursuant to Business and Professions Code Section 7159.5(a)(5) “Except for a downpayment, the contractor may neither request nor accept payment that exceeds the value of the work performed or material delivered.” This means that if you do not complete 50% of the installation on Day 1, you cannot ask the client to pay for 50% of the installation at the end of Day 1.
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Sep 3, 2021
These terms would be fine if you’re a subcontractor or if this is a commercial (not residential) project. However, if you’re a GC dealing with a homeowner, you’re not allowed to pre-bill for work that’s not yet done. So you could only bill for 50% if you had actually done that amount of work. I’m happy to answer any questions you have about this.