Payment on REALLY BIG Residential Installs


LawnSite Fanatic
Beaverton, OR
Hey, for those of you who have handled REALLY BIG residential landscaping installation/construction jobs (e.g. $50,000 - $500,000), how do you structure the payments?

I suppose it's kind of hard to ask for 50% down. Furthermore, I could see where 2/3 of the way through a job, you may exceed that 50% deposit. So how do you do it? Bill in segments? Any real life examples would be appreciated.


LawnSite Senior Member
Jim...I'd do it in thirds. 1 up front.....1 midway through job...and final payment on completion! Most will not fork over 50% on large jobs, they also feel more comfortable paying in thirds....kinda pay as job goes to see how work is getting done! In the past I'll put wording into the contract something along the lines that I want full pay before I finalize the job(hydroseed,mulching etc) By doing this I can make sure they are home, and not conviently out shopping when I want to get paid. It amazing how some folks are always there on jobsite while work is getting done, then all the sudden when youre done and knocking on the door they seems to vanish!!


LawnSite Silver Member
S.E. Michigan
At my last position, I was the manager in charge of a $1.1 mil. landscape contract. The work was over two years, as new buildings were being built. We set up an incremental payment, say 10% when such-and-such was done, another 10% when another was met, etc. The final payment was withheld until all parties (landscaper, designer, owners rep) signed off on a punchlist.


LawnSite Bronze Member
Jim it really varies on job to job with us.

Anything under 50k is 1/3 down 2/3 upon completion.

Over 50k we make arrangements for payments all the way through depending on whats involved in the job.

On a 145k job we just landed there will be about 25k down. To ask for 50k (around 1/3) is a bit much and the job isn't booked to proceed until the frist of July. The increments will come quickly once the job is started, always making sure we are well ahead of the game.


LawnSite Platinum Member
On residential properties , 1/3 down, 1/3 when we start the job , final payment upon completion. Commercial we schedule draws , and require an escrow account , or a irrevocable bank letter of guarentee.


LawnSite Senior Member
Brookings SD
We normally get one third down to schedule, unless it will be a long term project, then we go for less. The rest we request and require as different phases are completed. we credit the deposit money as each phase is completed. In other words, we hold some of that deposit until the last phase is complete.

Austreim Landscaping


LawnSite Member
Ummm point of order here gentleman.....

It is called a "draw"..... in a 3phase draw it would be 1st draw to start the job 2nd draw mid point & 3rd draw upon completion. This helps keep everyone in >check< make sure your "draws" are stated in you scope of work and or the contact for work statement.



LawnSite Silver Member
I know from home construction, we'd get a draw also. That was based on what was going on at the time.

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