PREFABWORLD BALI INTERNATIONAL is unable to offer financing options, the reason being that our company is based in Indonesia. Insofar not any bank outside Indonesia (a foreign bank) has the facilites to issue overseas financing (bond, LC) . PREFABWORLD BALI INTERNATIONAL clients can therefore only apply for private financing options, if so required.
Payment Conditions for our Prefab Homes are split into 2 components, viz: Design and/or prefabrication and design only as outlined below under paragraph 1 and 2.
1. PREFABRICAITION ORDERS
Except for the lower amounts we offer a flexible payment system. Payments are always the source of contradictive rules: paying first or supplying first. Apart from expensive L/C's, bonds, or guarantees which only benefit the banks a sound and safe payment system is merely based on trust and integrity. We have set up a system where the client is free to chose which payment system will suit best.
For orders less than USD. 6,000 and orders for our antigue Java houses: 90% payment in advance. 10% prior to shipment
For variation orders a prompt payment is required.
For orders over USD. 6,000
We provide three options:
1st installment: 15% against a pre-assembly progress of 20% (milestone 1)
2nd installment: 40% against a pre-assembly progress of 40% (milestone 2)
3rd installment: 20% against a pre-assembly progress of 75% (milestone 3)
4th installment: 15% at completion and prior to shipment (milestone 4)
Material and/or labor price escalations, if any, apply for this option/or .
1st installment: 20%, against a pre-assembly progress of 25% (milestone 1)
2nd installment: 40%, against a pre-assembly progress of 45% (milestone 2)
3rd installment: 15%, against a pre-assembly progress of 80% (milestone 3)
4th installment: 10% at completion and prior to shipment (milestone 4)
Material and/or labor price escalations, if any, apply, for this option.
1st installment: 30%, against a pre-assembly progress of 35% (milestone 1)
2nd installment: 25%, against a pre-assembly progress of 55% (milestone 2)
3rd installment: 10%, against a pre-assembly progress of 85% (milestone 3)
4th installment: 5% at completion and prior to shipment
Material and/or labor price escalations, if any, apply, for this option.
1st installment: 10%, against a pre-assembly progress of 45% (milestone 1)
2nd installment: 10, against a pre-assembly progress of 75% (milestone 2)
3rd installment: 5% against a pre-assembly progress of 90% (milestone 3)
4th installment: 5% at completion and prior to shipment (milestone 4)
No material price escalations with this option.
Price escalations apply for option A, B and C in the event that raw materials have increased in price since the start of the project. Adjustments will be made to the invoice accordingly over the costs for the remaining materials needed to complete one or more milestones.
Our projects are priced on the basis of the USD. In the event that payments will be made in Euro or any other currency the payment for the installments will be adjusted against the conversion rate between USD. and that currency (up or down) at the moment that the invoice is issued. In the event that the rate at the moment of payment is higher or lower than the Indonesian Rupiah as was agreed at the moment of signing the order, payments in the foreign currency will be adjusted to the lower or higher conversion rate.
Invoices, terms and conditions
Pro Forma invoices will be sent by e-mail. 1% local bank charges will be added to each invoice. Nett. payments to be made by telegraphic transfer.
Payments for installments need to be received not later than 7 calendar days after client has received the Pro Forma invoice. Late payments will be charged with 2% per month from the invoice amount. Prefabworld Bali International reserves the right to halt or suspend the works if payments are delayed, until the funds have been credited to our account.
Prefabworld Bali International reserves the right to increase the prices with the costs for unexpected charges and/or fees imposed by the Government of Indonesia related to new or revised export regulations for the goods.
The goods will be released for shipment as soon as the full payment for the final installment inclusive of any outstanding payment(s) has been received.
We are at the receiving end of the payments made by the client. International bank regulations state that a payement shall not be in transfer longer than 3 working days. However, not all banks comply with this regulation and keep the money longer in deposit than regulated. In order to allow us to trace where the money is or is kept in the bank deposit we advsie that the client asks for a copy of the MT103 transfer slip and e-mail this to us. Banks will be more careful with upholding a payment when we are in possession of a copy of this slip.
Payment by credit card
Payment by credit card is not an option, unless the client accepts high fees imposed by the payment providers. These payment providers charge 9% for international commercial payments to Indonesia.
Progress payments, how does it work.
Each project with a value over USD. 50,000 will be fabricated following a pre-determined time and material schedule, shaped in a graphic called the S-curve. At 2, 3 or 4 pre-determined intervals a cut-off date will be set, linked to a milestone (such milestone normally falls at the cut off date). When a milestone is reached a payment installment needs to be made. Proof and evidence of a milestone will be furnished by pictures.
S-curves are an important project management tool. They allow the progress of a project to be tracked visually over time, and form a historical record of what has happened to date. Analyses of S-curves allow project managers to quickly identify project growth, slippage, and potential problems that could adversely impact the project if no remedial action is taken.
| Typical S-curve
An S-curve also provides the client a clear indication of the progress and whether or not slippage (*) may occur.
(*) Delay days due to bad weather, local ceremonies, national holidays, Acts of God and/or force majeur. Any of such events will timely be notified to the client.
We will soon install an internet CCTV system allowing the client - wherever in the world - to verify the progress based on the actual CCTV picture
3. CANCELLATION OF THE ORDER
Alll materials purchased by us from the payments made for option A and B will revert to our company upon cancellation of the order. No refunds will be effected. All materials purchased by us from the payments made for option C and D will revert to the Owner, whereas the retention money or the money kept in deposit will revert to the company. Shipment costs to be borne by Owner. At cancellation of the order, any price escalation for option D will be reset to the system for option A and B and will be charged.
4. STORAGE FEES
In the event that a client wishes to delay his project and/or would like to have his unit stored for a certain period on our yard we will charge an amount of USD 2.10 per day per m3 of wood to be stored. A discount of 5% will be granted if a booking fee of USD. 750 will be paid which will guarantee storage spsace. The fee is valid for 3 months whereupon a new fee of USD. 750 is required. The booking or storage fee includes the cost for packing and handling and insurance to theft and/or damages. The booking fee will be deducted from the storage fee at the end of the term.
5. DESIGN ONLY ORDERS
For orders equal or less than USD. 5,000
Full payment of the design fee prior to the start of the design services.
For orders greater than USD. 5,000 but less than USD 10,000
30% after 70% completion of the design works and prior to the submittal of the draft engineering report + draft structural drawings.
20% after100% completion of the design works and prior to the submittal of the final engineering report + structural drawings.
For orders greater than USD. 10,000
40% after 70% completion of the design works and prior to the submittal of the draft engineering report + draft structural drawings.
10% after 100% completion of the design works and prior to the submittal of the final engineering report + structural drawings.