When do i pay contractors in building a house?Im building a new house and i am currently arranging to have the excavator contractor there to install septic and excavate for the foundation. Then im having the foundation contractor come in to do his job. I live in Nova Scotia if that makes any difference. im doing my own work after the foundation except plumbing and electrical. Should any of these guys be asking for money up front or part way through? Or do they finish then bill me with 30 days to pay? Whats the normal procedure? no mortgage.
Typically they ask for at least half up front then the rest upon completion. If you were a business they may bill but since you are an individual expect to be asked for at least half to start
i am a contractor in san antonio texas. we ask for fifty percent upon the day we sart the job. depending on the size of the job we may have to ask for another payment arounf 3/4 quarters of the way through. we do this for several reasons. one, we have to by materials necessary for the job at hand we do not keep stock items since each customer is different. second most contractors use sub- contractors to assist in areas where the sub would be more qualified and time effective. also, it is a good faith payment. if my customer has accepted my proposel i hope at that point we have established trust with one another. i know that once that payment is given they are serious and are ready to invest in the improvement. to reassure that my customer is comfortable and confident when they hand over large sums of money i always provide a reciept that includes specific details as to what and where that money is gonna be used for. i may not do it doen to the nickle but i like to reassure them that i have a plan of action and that i am dependable. i can understand why you or anyone would be weary to hand over a check but there are a few way to reassure yourself you are working with the right people. ask for reference from customers the contractor has done similiar work for. check with the BBB. google there name and see f anyone has said anything on the internet. i love it when a new customer wants to talk to an old one because it immediatly set my new customer at ease. just follow your gut and ask as many questions as you want. you are the customer and if they dont wanna answer its time to find a new contractor. good luck!! have fun!!
You have a couple of viable answers Denise. You can pay for the materials (septic tank, gravel, concrete, etc.) up front and pay the contractor about 25% of what their bill for labor is, then pay them the remaining 75% after the inspections are completed, or you can pay 50 - 50 as indicated above. A word of caution: make sure the contractor has paid their subcontractors / suppliers when you pay them, otherwise you may be sued by the unpaid party. I'm a project manager in Michigan, so you should check out how this works there. Here we have to get a sworn statement and waiver of lien when we pay the contractor to ensure their subs have been paid. Good luck!
