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Updated almost 8 years ago on . Most recent reply

User Stats

31
Posts
4
Votes
Brian R.
  • Investor
  • Philadelphia, PA
4
Votes |
31
Posts

Contractor wants his money, but I don't want to pay... yet

Brian R.
  • Investor
  • Philadelphia, PA
Posted

I just had 2 days worth of work done in my first investment property.

I paid the GC half of the job's total before work began.

It all took two days and I'm pleased with the results. Upon reviewing the work last night [after all workers had left] I noticed something strange sticking out of the floor. It's small and looks like it came up from the basement ceiling and is now poking through the living room hardwood floor.

I immediately emailed the GC a picture to ask what it was. [He doesn't know]

My question is, am I right to have the contractors [either sub or general] come and address this before paying?

My thoughts/fears are, if I pay the rest of the bill then they will not be motivated to fix or remedy this.

I feel awkward saying, "I won't pay you until after this is done", but that feels like the safest bet for my own best interests. Plus, as a contractor they have the protections of always being able to take a lien out on the property.

I hear it's better to owe them then have them owe you... any and all thoughts are welcome!

Most Popular Reply

User Stats

226
Posts
140
Votes
James Barnhart
  • Rental Property Investor
  • Ocala, FL
140
Votes |
226
Posts
James Barnhart
  • Rental Property Investor
  • Ocala, FL
Replied

It is about building a working relationship with the contractor, and he with you.  You may both want to do business on future jobs.  He needs to address the thing in the floor, but he needs to get paid.  Why not hold back 10% of what the job costs, but pay him the rest of the money until the issue is fixed.  This is a common practice.  

Hopefully, you got referrals from people that have had work done buy him.  If he  has a good reputation, then he will take care of it.  If he was just the cheapest bid, and you know nothing about him, good luck.

Only do business with good reputable people.  They will stand behind their work, It is less expensive in the long run, and you get a better result.  And, you add that contractor to your team of professionals that help you succeed.  And, you help them succeed.  You build trust both ways, and you both win.  

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