Contractor payment

[Rao V.]

Hi,

I completed my first flip and made some money. I am happy it all worked out well. Now I want to know what paper work do I need from contractor before I pay him the remaining amount. So far I have paid him in checks or some material from home depot.

Is it enough to write down all payments/material provided to the contractor and have him sign and acknowledge that all this is received? I just want to make sure he does not come back and claim that he never received those material. should I ask him sign individual home depot receipts?

He is a licensed GC and contract was with his business. Do I need an invoice from him or 1099?

Thanks

[Manolo D.]

You will need 1099 if he is not a corp. Here is a list of things you need: ACORD copy naming you as additional insured, W9 payment details form, "Unconditional lien waivers on final payment" for ALL subcontractors and suppliers as well as his company's, copy of his contractors license, copy of contracts, Guarantee statement.

Note: If he could not provide unconditional lien waiver on his subs, ask that you issue a check to him AND his subs/supplier, in case of multiple suppliers, it will be multiple JOINT CHECKS.

Hope that helps.