Suggested payment schedule?

[chazas]

Does anyone have a suggestion for a payment schedule that is fair to both the owner and the builder?

The last time I built a pool, to the best of my recollection, there were 8 or so payments at various stages, with the final 10% on "day of plaster." (I can't find my file.) The schedule itself seemed fair, but the contractor was constantly insisting on payment before he was entitled to it. We also got into a huge fight about the final payment - he insisted on payment even though the plaster job was unacceptable, and there were several other things that just weren't finished. We offered to pay some, but not all, pending resolution of the problems, and he ended up suing us rather than just coming back and fixing things. So I'm a little gun-shy.

Now we're building a pool in a different area in connection with a new house. After bids, we selected the most professional contractor, and I asked to see the form of contract they'd want us to sign. It contains the following, which makes me choke:

10% down
36% "on day of excavation"
49.5% "at gunite"
4.5% "prior to plaster"

This schedule keeps the builder way ahead of the owner, with absolutely no leverage to fix problems. If they insist on it, it will probably be a deal-breaker.

On the internet, I found the following suggestion as a "typical" payment schedule:

Maximum $1000 down.
30% after excavation.
30% after gunite.
30% after decking.
10% before plaster.

We have no decking in our job - so I'd probably substitute coping for decking here. Even then, I have two problems with this schedule. First, it still leaves only 10% on the table, which doesn't seem like enough. Second, if the plaster job stinks, there's no final retention, so we're stuck in lawsuit world again.

I'd really appreciate any suggestions.