The payment timing clause: paid on arrival, paid on scheduling, paid before delivery
Clause 3 of 13 from my signed L&G Building & Concrete contract, with what it meant on my project and how I would rewrite it.
What it says
Company statement: contract ODR-001094, signed February 20, 2026
“The first payment must be paid prior to the arrival of materials to the job site. … The remaining 17% must be paid to installer upon completion of the building.”Terms and Agreement, page 1, and Balance Breakdown
On my job the schedule works out to $90,182 due before the building is finished and $8,568 due at completion. Concrete follows the same pattern: footers and grading are paid when the crew arrives, and the rest of the concrete is paid when the pour is scheduled. The contract explains that L&G prepays for concrete, which is why it wants payment ready on arrival.
What happened on my project
My project record
My Balance Breakdown: $19,700 at signing; $10,594 for footers and grading when the concrete crew arrives; $37,605 for the rest of the concrete when the pour is scheduled; $22,283 for building materials when the building is scheduled, before delivery; $8,568 for installation on completion. The first four rows add to $90,182, or 91% of the project.
Arrival and scheduling are the company’s events, not the customer’s. The footing money was paid before the footings were inspected and failed. The concrete balance was paid before the pad was measured at about 4½ inches. The installation payment was then requested while the building was half a frame, although the breakdown ties it to completion.
How I would rewrite it
- Footers and grading due after the footing inspection passes, not on arrival.
- Concrete balance due after the pour, less retainage, with thickness verified by the customer before placement.
- Materials payment due after delivery and a count against the order, not before.
- Final payment due after the county’s final inspection passes and the punch list is closed.
The question to ask before signing: “Can each payment be triggered by a passed inspection or a delivery I can count, instead of by your crew arriving or your office scheduling?”
My reading as a customer, not legal advice. A North Carolina construction attorney can tell you what the clause means for your contract.
Related
Previous clause: How you pay. Next clause: Concrete warranty. All clauses.