Risk of decoration before payment large, medium an

2022-07-22
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Now many decoration companies in Wuhan have launched the slogan of "decoration before payment", hoping to consolidate or enhance the integrity in the eyes of Jiangcheng owners. However, for this new decoration payment method, many owners expressed doubts: what is "decoration before payment", and what benefits can this payment method bring

what is "decoration before payment"

the so-called "decoration before payment" does not mean that payment will be made after decoration. Instead, the family decoration is divided into three stages: scheme design, foundation construction and main material construction, and the "installment" strategy is implemented. This payment method actually changes the payment proportion of 55%, 40% and 5% corresponding to the original three stages to 55%, 20% and 25%

"in the medium-term decoration, the decoration company pays 20% of the project funds in advance, and the owner's actual balance in his hands has increased by 20%. With the money in his own hands, the owner will not worry about our construction quality or decoration projects." Wuhan decoration companies such as OULIN Yazhu decoration and Hu Sifu decoration have taken the lead in embarking on the road of "decoration before payment"

"Decoration before payment: what are the substantive effects?

this new payment method has subverted the active and passive position of decoration companies and decoration owners to a certain extent. According to the original payment method, only 5% of the final payment of the decoration company has not been recovered. If the decoration company does not care about this part of the cost, it may end the construction project hastily or maliciously add items during the construction process. Now, the decoration company has paid 20% in advance The medium-term project payment, plus the 5% final payment, is actually 25% of the project payment has not been recovered. Once the decoration quality is not satisfactory to the owner, it may be lost

therefore, "decoration before payment" promotes designers and construction teams to be more serious and responsible in their work, which can effectively solve the problem of high negligence rate existing in some Wuhan decoration companies, and truly enable owners to decorate and move in at ease

large, medium and small decoration companies are more risky and try and be careful

the method of decoration first and then payment undoubtedly gives decoration owners a lot of initiative. However, it is not excluded that some owners will refuse to pay for some unwarranted reasons, which will cause great losses to the decoration company, so this payment method is a venture capital for the decoration company

according to the scale of the project, the decoration company needs to advance tens of thousands of project funds in the medium term, and more than hundreds of thousands. This may not be painful for large-scale decoration companies with strong strength, but it is a big adventure for small and medium-sized decoration companies. A little carelessness is likely to lead to poor capital turnover of the company, so it is not easy to try

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