Third Payment to Contractor

Third Payment to Contractor

Step # 53 in the Remodelormove.com Kitchen Remodel Planner

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Is it time to make another payment to your contractor?  If may seem like you are making lots of payments to your contractor – which is good because that means there is a lot of progress on your remodeling or home addition project.  It is better for you and your contract to make several smaller payments as work progresses than to pay a large deposit and a large payment at the end of the project.  Multiple smaller payments reduces your risk and gives a steady cash flow for the contractor which helps them run their business.  It also puts you and your contractor in a position to discuss “what has been done”  and “are you finished”.  these conversations help set the stage and prepare you for making the – hopefully soon – final payment where the contractor needs to have everything completed.  If at these progress payments the contractor isn’t yet finished with some details you can begin to set the contractors expectations that you will not pay until all the agreed upon work is complete.

It may be time to make another progress payment if you have had a lot of plumbing, electrical and duct work done.  this work can be expensive for the contractor if they had to hire a subcontractor to do the work.  Did the city inspect the work that was completed?  Did the work pass inspection with no issues?  It is common for inspectors to find one or two things wrong on a project.  Some of the inspection criteria is subjective so occasionally there is a disagreement.

This is good time to start collecting any release of liens that may be required from subcontractors.

Insulation is next for the walls, floor and ceiling and then comes the drywall – this is when your construction project starts looking like a home!  It is also when the rapid progress for many projects slows to a crawl.