Continuation of contractor payment post- how often do u pay

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Post Fri, Apr 30 2021, 7:30 am
It seems that they just changed the household management to no anonymous posts, even thought 2 days ago, anonymous posts were allowed. And in this section of organizing, anonymous posts are allowed. Why did they change it?

This was my original question:
When you're renovating or doing work on a house, apartment, how do you work out payment with a contractor? How much percent does a contractor charge up front if any for just the work (if you buy the materials?). Can you pay him at the end of the day or week? What's the largest amount of money you have paid a contractor up front for a job? I know different contactors will be different, but what was your experience?

For all those who gave over $10,000 at once, how do you trust them that they're not going to run off, and if they do, is there anything to do about it?
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Post Sun, May 02 2021, 4:13 pm
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may tulip


Post Sun, May 02 2021, 9:42 pm
There is one answer. Make sure the contractor you hire is a lot more worthy and/or trusted than $10,000.
Then write up or have him write his own contract.
If you can't trust your contractor with the above then you are risking too much to go further.
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Post Sun, May 02 2021, 10:15 pm
If you are having a large job done, you absolutely need a contract. Among other things the contract will have a detailed list of exactly what work is to be done with all the specifications and specify who is supplying what. For example, I supplied tile but they supplied all materials necessary to install the tile.

In general the contract contains a schedule of payment. Typically you pay 10% on the execution of the contract. That is the maximum allowable in California. Everything else is paid as each step is started and finished to your satisfaction - typically you pay 50% of the amount when they start a specific step and then the remainder when a step is finished. However, people generally hold back 10% of the job until everything is completed and you sign off that it is properly done - including your punch list.

You should hire a GC who is bonded and licensed and you should get recommendations from people who have used them. That is the best way to protect yourself and ensure that you get the best job possible because you really don't want to be in a position where you have hired an incompetent or dishonest GC - as they say, you can't get blood out of a turnip.
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