Money withheld from the contractor until after final inspection

[Yi Zhao]

Hi all,

I'm a flipper and the houses I flip usually takes $50k-60k to fix. In my contracts, I always withhold 10% until the house is sold and final home inspection has passed. It usually cost 1k-5k to fix issues that arise during the inspection.

My contractors complain that its tough to have to wait indefinitely until the house is sold. I can definitely see where they are coming from.

On the other hand, I would like to protect myself and make sure that there is a way to cover the expenses that arise from from the final home inspection (that they are responsible for).

Are there better options than what I'm doing currently? I would like to address the contractors concern and at the same time still protect myself.

Thanks in advance for any advice!