Depending on the nature of your cabinet renovation project you may need to determine a payment schedule with your contractor. A payment schedule is a written document that states when you will make payments to the contractor at certain stages of your project. Payment schedules are common and needed in order to allow the contractor to purchase materials and pay workers for larger and longer jobs.
Here are a few tips on developing payment schedules:
• Always get payment schedules in writing
• Be wary of contractors that ask for a large payment up front. They may have financial problems or be worried that after you see their work you will not be happy.
• If you are hiring a contractor for a long, expensive job you may want to get some proof that they are in good financial standing. Examples of this may be a reference letter from their bank. That way you know that the company is able to pay their bills and subcontractors during the course of your job.
• For large projects, a typical payment schedule is as follows: 10 % at contract signing; 3 payments of 25% spaced evenly over the project’s duration; the final 15% when the job is TOTALLY completed.
• When deciding on payment dates make sure that a date is specified, but also make sure that work milestones are specified too. In other words something like: “25% of total on July 23 if rough plumbing is completed, electrical is installed, and flooring is completed”
• STICK TO YOUR PAYMENT PLAN. Over the course of a long kitchen renovation project you will get to know a lot about your contractor. You may even become friends. However, don’t ever let them talk you into an early payment. Do not pay them on a specified date if their work is not following your payment plan. This is a BIG MISTAKE that trusting homeowners often make. You NEVER want to get into a situation where you have paid for more work than has been accomplished. If you do, you will find yourself waiting for the contractor to finish work…but they have no motivation to finish because they have already been paid! This can lead to a nightmare of a situation.
• Give the final payment when your final checklist is TOTALLY completed. Many homeowners can tell you the small details will never get completed on your kitchen renovation if the contractor has been paid in full…they have moved on to the next job.
• Always pay contractors with check or credit card. This documents your payment
for more information visit: http://www.raleighdurhamcabinets.com/
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