A California home improvement payment schedule, subject to ordinary payment restrictions, labels an unsupported 45% advance as a progress payment before any work or delivery. What is this billing practice called?
Correct Answer
C) Front loading.
Front loading describes collecting ahead of supported project progress. In this scenario no completed work or delivered material supports the proposed progress payment.
Why This Is the Correct Answer
Front loading describes collecting ahead of supported project progress. In this scenario no completed work or delivered material supports the proposed progress payment.
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