When it comes to coughing up payment to your basement contractor, things can go sour quickly. Is the contractor going to take your money and run? Are you stiffing an honest contractor out of hard-earned money? Too often, the problem lies with the contract and a vague description of payment terms and conditions.
We believe that the best way to pay a contractor is to agree on periodic payments that are based on the amount of work completed. We advise against paying for work that has not been performed and recommend having a detailed payment schedule from the contractor before the job begins.
Here is a sample of how we do payments: (if reading this on a smart phone its best to rotate your phone)
- 1. Contract Price & Terms of Payment. The Contract Price shall be calculated in the following manner:
- A fixed cost of $30,000, plus applicable taxes, to be paid as follows:
|Timing of Payment|
|Upon execution of contract||$1,500.00 (This is our maximum to put your job into scheduling and apply for permits)|
|Upon completion of Framing||$3,000.00|
|Upon completion of Drywall||$12,000.00|
|Upon completion of Flooring Install||$4,500.00|
|Upon completion of Trim & Doors||$3,000.00|
|Upon completion of Painting||$3,500.00|
|Upon completion of the Work||Balance of $3,500.00, plus taxes of $1,500.00|
Please note this is a sample and each jobs payment schedule will be slightly different.