Hi all,

Would like to ask what is the fair payment term for renovation 300k and above

What i got is 20% deposit and 50% upon confirmation drawing.

It is like 70% paid in advance and the 30% rest pay progressively.

Another one was like 50% in advance.


This post has been edited by oRoXoRo: Jun 7 2022, 05:43 AM

10% upon agreement. CONTRACTOR DONT NEED 150K TO START WORK !

Balance as per work done for each section .... eg .. wall, roof, wiring, plumbing, flooring, foundation etc.

Retain 5% for 6 - 12 months for defects rectification guarantee.

WRITE UP A PROPER AGREEMENT !
NO VERBAL.!
TAKE PHOTOCOPY OF CONTRACTOR NRIC !
CONFIRM NRIC ADDRESS .... VISIT THE PLACE

This post has been edited by mini orchard: Jun 7 2022, 06:42 AM

This is the proper way to deal with contractors

Don't trust them TS... Better play smart, if not you end up with half job done and they are no where to be found... Normally you dont need to upfront that much % before the job is started....

70% before start work is a way too much

i pay 10%, then others are stages. If the progress not yet 50%, i wont pay 50%.

Appreciate your feedback, but taking NRIC macam too much tho

you mean visit the office of the contractor?

oh yes, this is large amoutn of money
can just take 70% and run away to buy a BMW 3 series

If you know him personally, then you decide whether IC is require. As for unknown contractors, I normally request for IC.

If he is worried, ask contractor to 'crossed' the IC and sent it to you.

You decide the risk you are willing to take. Is your money.

Whether is office or house add, you must be able to locate him if required.

Smelling some shit going on...
Don't fall into trap by paying 70% or even 50%..

Good financial & experience contractor don't need to much $$$ to start up project... Because they got contact with all the material suppliers in hand..

20% or so is enough to start up work...
Balance is paid progressively 👍

Whatever...
Make sure it's written down in agreement...
Signed by both parties


This post has been edited by nexona88: Jun 7 2022, 10:05 PM

Never pay 70% in advance before start work. As it is to the contractor's advantage or willingness to complete your project because they already get to keep the 70%. Pay 10% then 5-10% every stage until completion. That way they will be hardworking to complete your project because every stage they complete they get money.

Most of the contractors ask for 30% deposit.

Best to go to https://www.mydata-ssm.com.my/ to buy the SSM info about the company.