What’s In This Article?
Building a house from scratch that’s fulfill all your needs is a dream of every single person. But due to lack of knowledge, thousands of people trapped by a contractor as they have no knowledge about contractor selection criteria. Before diving deep in your house construction, you should have known about contractor selection and smart payment dealing terms. While dealing with the contractor, the key element is payment which you have to tackle smartly otherwise you will lose your money. This article will help you to set some benchmark to deal with contractor smartly.
The Only Rule To Deal With Contractor “Do Not Pay For The Services Or Material Upfront”
Protect yourself when doing any kind of improvements to your home or when building a house from scratch. I am sure you have heard many stories of people losing money to a contractor or something to that effect. Some individuals have been taken for thousands of dollars. When asked later as to why they paid upfront. The answer is usually something like. It was a “down payment”, “They needed it for materials”, “They seemed very trustworthy”, and “They were highly recommended.” Well, needless to say, If you asked the people who have nothing to show for their money. They would tell you “Do not pay for anything upfront.”
We suggest you, please do your research while contractor selection as it is your money and no one cares about this. Click on below link to learn about contractor selection criteria:
An alternative to paying a Contractor for materials upfront is to buy the materials yourself. And have them ready at the job site. You should focus on finish materials like paints, fixtures, etc. All other support materials should be included in Contractors bid which they pay for or get on credit to complete your job.
So, the question is, “How do we pay then?” The answer to this is in proportions at the rate at which work is completed and checked. Building a house from scratch requires proper inspection and being an owner you are responsible to do so. As mentioned above, it is your money and contractor don’t even care about that. If you are capable of inspection than its great to do, otherwise you can hire a consultant or an engineer that helps to utilize your money efficiently. You can release contractors payment in phases if everything seems on track and as per signed agreement with you.
So, One can schedule Draws or Payments to be made at certain levels of completion as worked out between you and the individuals doing the work. If the job lasts more than a week you might consider paying for work completed each week. You should also sign a contract stipulating work and payment schedules.
Nothing special in this technique, you have to work smart in order to save yourself from contractors scamming.
Good Luck for your new home.