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When to Pay Home Remodeling Contractors
Pay Home Remodeling Contractors Only after
Passed Inspections
By Mark J. Donovan
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When it comes to paying home
remodeling contractors always remember the “Golden Rule”. Those who have the
money rule. Repeat this maxim to yourself at least once a day during the life of
your home remodeling project. By doing so, you’ll save yourself money and a lot
of heartache.
Paying Home
Remodeling Contractor Deposits
As part of most home remodeling
projects a deposit is necessary to line up the home remodeling contractor.
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The size of the deposit requested by
home remodeling contractors varies greatly, however expect to hear a figure of
somewhere between 10 and 50% of the total costs of the project. This does not
necessarily mean you have to accept the home remodeling contractor’s deposit
proposal. These deposit estimates are simply what you can expect to hear. I
would highly recommend negotiating and capping the deposit to know more than 25%
of the cost of the entire home remodeling project.
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Paying the Home
Remodeling Contractor for Incremental Work Completed
As part of your home remodeling
contract, there should be a payment schedule included based on incremental work
completed and inspected.
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Always hold off paying a home
remodeling contractor until you and the local building inspector have inspected
and approved of the work. When personally inspecting the work completed, make
sure it complies with the home remodeling plans. The local building inspector
will also be checking to see if the home remodeling project is being built to
plans, but will also be inspecting the project for building code compliance. The
building inspector, however, will not be inspecting the quality or craftsmanship
of the work performed. |
Photo by Mark Donovan |
If the completed work complies with
the home remodeling plans and the local building inspector signs off on the
work, then you should make the next incremental payment to the home remodeling
contractor as specified in your contract.
| You should not hold off payment if you are unsatisfied with an aesthetic issue
associated with the work. Instead, your best course of action is to make the
payment to the home remodeling contractor and discuss separately addressing the
aesthetic issue. Keep in mind that it may cost you more to have the home
remodeling contractor address your aesthetic concern. Failing to make an
incremental home remodeling payment to a contractor after the work has been
successfully inspected is a sure way to submarine your home remodeling
project. |
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So though it
is important to remember the Golden Rule, it is also just as important to follow
your contractual obligations. The last thing you want is to see your home
remodeling contractor walking off the job and slapping a mechanics lien on your
home.
Again, communication and open dialogue is your best course of action if you have
concerns with the work being performed. By living up to your legal obligations
and communicating constructively with your home remodeling contractor, your odds
of having your home remodeling project completed successfully are dramatically
improved.
To obtain accurate and consistent home building contractor quotes, see my
Home
Addition Bid Sheets. They provide a request for quote section
that you can provide to prospective home building contractors. It also includes
a comprehensive cost breakdown table, in Microsoft Excel format, that allows the
home building contractor to include their projected home building costs for every phase of the
project.
How to Finance your Home Remodeling Project -
can help provide funds for your new home improvement project if financing is
required.
Related Articles on Home Construction and Hiring the Right Home Building
Contractor
Additional Resources from Amazon.com on Home
Building
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