Best Practices for GC on Rehabs and Draws

[David de Luna]

I'm interested in hearing from fellow flippers about how they have managed the process of draws and payments to contractors. 

I work with the GC at the outset to establish what items will be completed for each draw. So I advance the first draw based on what the contract calls for for the items he says will be completed with that draw. When he tells me those items are done, I send an inspector who will use that list to inspect. If done, I pay the next draw, and so on. The issue is often that they cry at the end for money to buy materials or whatever, even though it was understood the final draw isn't paid until the project is complete. Ever have that problem? Maybe I just need to spend more time at the outset to help them organize the draws so that the final one doesn't have a lot of materials in it. Not sure. And what are you doing about the lien clearance?