paying contractors

[Manuel Gonzalez]

Hows everyone doing? Just wondering how most of y'all pay contractors. I got a few bids from contractors I've never used before so I'm thinking about not paying them until job is complete cause I know sometimes they ask for a percentage up front at least I have been asked I never had a problem cause I i either used them before or they where recommended.

[Haim Mamane Palman]

The key is always to have leverage and pay upon completion of agreed upon milestone such as end of demolition, upon successfully passing of rough inspection, upon kitchen installation, upon successful passing of final inspection, upon completion of final walk through and touch up list.

You should specify these milestone in the contract under "payment schedule" so there are no surprises.

Always keep a significant amount 20-30% as a final payment upon completion of final touch up list. And have them sign a lien waiver once receiving the final payment.

In general, I pay for the materials.