Working with contractors

[Shonda Rountree]

Last year, I had some issues with a contractor I hired to replace my sunroom. Needless to say, he never finished the job after I paid him. I did receive some money back from the deal. Looking back over this dark cloud on my REI journey, I realized my mistakes in this process. Does anyone have any tips or best advice when working with contractors? Thanks

[Bruce Woodruff]

Unfortunately this does happen, way more than it should. The payment process should be fair and safe for both parties. Speaking as a long-time Contractor, I would recommend handling progress payments like this:

Basically, never allow the amount of money you give the Contractor to exceed the amount of work that has been done to this point. For example, you have a medium sized remodel (maybe similar to your sunroom project. The total job price is $50,000.

Never give much if any money to the Contractor 'up-front' or prior to work being started. Most states with strong Contractor law only allow the Contr to collect $1000 or 10% - whichever is LESS...prior to commencing work. A good, well-established Contr should not need any money in advance....they should have a good cash flow every week to pay their employees and money in the bank to pay their vendors and Subs.

Now of course there will be exceptions. Like a kitchen remodel where the Contr has to go and purchase some cabinets to install. Most good Contrs will even be able to handle this as they will have accounts at the big box stores and cabinet shops, In these cases you should feel comfortable giving out an amount close to what he will be spending to buy your new cabinets....just get a receipt and take pictures of the check, etc

But other than cases like this, a Contr should be paid for a particular trade when it is complete (and if applicable, has passed inspection) I.E. He requests payment for rough framing...is it finished? Has it passed inspection? Same for electrical, plumbing, tile, paint, roof, etc. Write a check for each trade only when it has been completed. You can combine some and write a single larger check if possible.

Make sure everything is crystal clear before you even start work....everything should be specc'ed out and in the SOW or Contract, down to the type of cabinet knobs...leave nothing to chance...

Hope this helps!