Monthly - This is applicable for larger projects spread over several months. Invoices are submitted monthly for the amount equal to the compensatory value during the pay period. Compensation schedule can be a percentage against a fixed fee amount, hourly, or a combination of both.
Percentage based upon completion - This is applicable for fixed fee, turnkey projects usually lasting several months. Invoices are submitted for a percentage of the project total at predetermined times for specific phases or tasks. Typically the predetermined times are spelled out in the proposal. See the example below.
Project initiation at time of signed agreement ........... 10%
Schematic design ..................................................... 10%
Design development ................................................. 20%
Final design and or Construction Documentation .... 20%
Production ................................................................ 35%
Upon owner approval and acceptance ................final 5%
50-50 - This is best for medium sized projects or those with short time schedules. Very simply two payments are made, the first upon agreement and the second upon completion.
Upon Completion - This is the most simple and best for small jobs. Very simply, payment is due after the work is complete. Note: Client must either be in good standing, or show good basis for this arrangement.
