Closeup on man`s hands writing a check

Closeup on man`s hands writing a check

Step # 47 in the Remodelormove.com Bathroom Remodel Planner

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The contractor has done a lot of work at this point and there has likely been several inspectors who have checked that the work performed meets building code and local regulations. This is a great time to make another payment to the contractor.  This will likely be the 2nd payment of 10 to 20% or whatever you have agreed to with the contractor.
 
If there is little framing work needed for your project it may be a good idea to skip this payment and then the next payment would likely be after the rough electrical and plumbing is completed in a few weeks.  The goal of these progress payments is to ensure you are paying for the work that is completed as it is completed.  This is good for you because you are not paying ahead of the work done and therefore have limited risk if something goes wrong and you need to cancel the project or hire a different contractor to finish the remodel.

 

Second Payment to Contractor

Progress payments are also good for the contractor because approximately 1/2 their costs – labor- requires regular payments.  If you are not paying your contractor as work progresses they need to borrow the money or keep cash reserves to finance your projects which drives up their cost of doing business and your cost to remodel.
 
Finally several progress payments emphasizes the concept that you and your contractor are collaborating to have a successful project.  This attitude of fairness and collaboration fosters a more positive working relationship and ultimately better results and a more enjoyable working relationship.