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Old 07-19-2012, 06:27 PM   #1
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When and how much should I pay my builder?


My 2 renos cost ~$16,000. I paid my builder $5000, $5000, $1900 leaving ~ $4000 left to pay. He seems to like to ask last moment on fridays which is what I am worried will happen tomorrow.
Should I have some owing at the end to make sure the job is finished to my liking? I know he has at least a full week of work to do. What is customary? I don't know because this is my first reno I have ever had done by a builder.
Thanks!

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Old 07-19-2012, 06:56 PM   #2
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When and how much should I pay my builder?


What does your contract say? Without a valid contract, you leave yourself open to a lot of potential pitfalls.

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Old 07-19-2012, 06:59 PM   #3
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When and how much should I pay my builder?


He should have given you a payout schedule along with the contract---

Lacking that bit of information---You need to ask him right now --what the remaining payouts will be---and when--they should be tied to the completion of certain phases---


Typical might be $xxx when trim work is complete---$xxx when painting is complete--$xxxx with final electrical trim out---

$xxx upon substantial completion---Balance due when punch list is complete---

Ask--also ask if there are any billable extras--
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Old 07-19-2012, 07:23 PM   #4
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When and how much should I pay my builder?


Thanks. Yup, that would have been nice.. but now that we are here I am wondering what to do.
We did have some billable extras that have been added on due to funky stuff hidden in the walls, I don't foresee any more though.
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Old 07-19-2012, 07:33 PM   #5
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When and how much should I pay my builder?


Unless the guy is an oddball---sit down with your check book and the contractor---

Tell him it's getting near the end---and you want to know what payouts are coming up---

This is what I like to do--although I do give a payout schedule--and bill extras as they occur---

Talk---expect to have some money owed until the punch list is complete----
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Old 07-19-2012, 07:44 PM   #6
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When and how much should I pay my builder?


It can be typical to pay 90% of the job on substantial completion (although doesn't sound like you're there yet) and have 10% of the job price held back until final completion. So when everything is done and functional with the exception of small punchlist items and whatever deficiencies may need to be done. So once you are at a punchlist, with this theory 1600 of your 16 000 would be held back until everything is done. However without a written agreement that is just one way to do it.

As others have said, I would go through what has been done and what has yet to be done, and come to a reasonable agreement, so that he is paid for work that has been done, and you feel like you are comfortable. Not much else you can do with no payment schedule agreed upon ahead of time.
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Old 07-19-2012, 09:17 PM   #7
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When and how much should I pay my builder?


If there are subcontractors involved then get lien releases from them before you pay the GC for the subsequent stages. As in, once the foundation's done and they've started on framing don't pay more until you see a release from the foundation sub. This way you know the GC is paying them, not stringing them along. This happens, the GC pockets the money, disappears and then the subs come and file liens against YOU for the work that was done. They deserve to be paid, of course, but you have to make sure the GC is actually doing it.
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Old 07-22-2012, 03:52 PM   #8
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When and how much should I pay my builder?


A bit late I know, buy why in the world would you go into $16K worth of renovations without a contract?? Many bad things for you can come from that.

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