The payment terms are always agreed when concluding the contract, but generally the following applies:
1. Advance payment is 20% to 30% of the contract cost, which includes the approval, production and installation drawings and assembled products with a longer delivery time (windows, external doors, steel structures, laminated timber structures, etc.). Upon the client’s request the bank of the house production factory can issue an advance payment guarantee.
2. The client pays for the goods 7 days after the goods have been delivered to the client (for instance based on INCOTERMS 2010 delivery rule DAP). This payment is ca 50% of the contract cost.
3. The client pays for the erection of the house 7 days after the house has been erected and the instrument of delivery and receipt has been signed.
The delivery and the third payment will be guaranteed with a payment guarantee issued by the client’s bank.