How do you pay the contractor?

Let's say the estimate for work is $100K. How much would I be expected to pay before the work is started? during progress? after work is completed? cash? check? bank check?

Also, what should I ask the contractor before choosing him. He should have some kind of insurance right?

TIA!

Re: How do you pay the contractor?

With all the work I've done to my house - We usually set up some form of payment schedule. He gets some money up front, some money during the construction, and then the final payment once the work is complete. Since you have more work to do there would proably be more like 4 or 5 payments. I would try and break it up evenly. Also - the contractor should be licensed and insured. Definitely check for complaints about them because contractors these days can be SO sketchy. Good luck!

Re: How do you pay the contractor?

Yes, talk to them about a payment schedule.

They may need cash flow in the begining for supplies, and you want them to keep moving along at a nice pace so the couple of payments during the project may help that - and then a final payment to ensure that all work has been completed to spec and final review.

Good Luck

Re: How do you pay the contractor?

When we hired Alure (years ago) we paid them with a bank check, beginning, middle and when they were finished.

They had insurance made out to us for the job.

Re: How do you pay the contractor?

We had major contruction done and our contractor sat down with us and wrote up a payment schedule. He wrote when payment was expected and how much. He managed to space them out very well for us. I don't think we paid him with a band check (I think they were all personal checks). He actually showed us his insurance and license when we met with him and we also went by recommendastions.

Re: How do you pay the contractor?

We've done something similar..paying for work as it went along for big jobs..sometimes we made some of the payment in cash to save some tax...some personal check as well...you can also call Nassau County (if your contractor as a license there) and consumer affairs will tell you about their last 7 years' record..

Re: How do you pay the contractor?

My parents paid with checks. I would try and create some sort of paper trail just incase something happens

Re: How do you pay the contractor?

Okay thanks guys!!!