Time-Linked Payment Plan
Time linked payment plan is simply a time-based payment plan. Simply put, a given period of payment is stipulated by the builder or construction company, and the payment is broken down for the intending homeowner for that given period.
For this payment plan, the owner pays the construction company at the stipulated time irrespective of the progress of the construction, as long as the construction is set or ready at the end of the agreed period.
Take for example, the agreed period for the completion of the building project is 4 years, and the break down for payment would be, at booking, the intending owner pays 30% and after the first 6 months a 10% payment is also made irrespective of the stage of construction, after which every 6 months he pays 10% for construction. This will take place until the four years of completion agreement is met (6 sets of 10% payment every six months interval).
At the end of the four years, the construction company is expected to deliver a completed structure, and the owner takes possession at the stipulated time.