How to properly pay a contractor?

[Brent Davidson]

When you're hiring a contractor, how do you handle payment. Will they want payment before? If so, it doesn't make much sense to pay until you're sure the work is complete, right?

It makes sense to me to pay half before and half at completion. Is that the way to do it? Also, who typically pays for materials, you or the contractor?

[Frank Adams]

NEVER, NEVER, NEVER, pay anyone, for anything, up front!

If they tell you; "I need the money to purchase the materials", YOU DON'T WANT TO HIRE THEM. Anyone who's working that thin isn't someone to hang your hopes on. If the materials are a lot you can go purchase them yourself.

If it's a long term job, intermediate payments may be appropriate, he has a payroll he has to meet too!

Just as important as payment is INSURANCE. Don't ask him to show you a copy of insurance coverage, have his AGENT fax you a copy of a CURRENT, IN FORCE binder!

Your instincts are right on.

all cash