Home>Levelset Community>Legal Help>Do you see any contracts that get % of contract up front or amount based on % completed with net 15 or net 30 terms?
Do you see any contracts that get % of contract up front or amount based on % completed with net 15 or net 30 terms?
Do you see any contracts that get % of contract up front or amount based on % completed with net 15 or net 30 terms?
1 reply
Jun 18, 2020
It's common for construction contracts to require some % of down payments. Typically, if there are high mobilization costs for your work, the down payment should be greater to get the job started off right.
Project milestones are a common way to schedule out progress payments throughout the job. Using the percentage of completion as a payment milestone is common, as well.
Finally, net 30 terms are common in construction, but net 15 terms are not.
This article might provide some valuable insight as well: Guide to Progress Payments on Construction Projects.