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Q: How do contractors typically take payment? Some upfront, some later?

When I was growing up, my dad used to say that you pay people 1/3rd upfront, 1/3 upon hitting some milestones, and 1/3 upon completion. Is this or something like it typically how contractors take payments? And, do I determine the way payment works or will the contractor have a standard way they do things?

Posted in Other Remodels on

paying contractors upfront milestones Flag / Report


  • A: Payments



    Yes, that is how we generally take payments. Much of it depends on the scope of the project, but what you are describing is not far off from the actual. On large projects, such as second story additions and whole house remodels, we break the payment schedule into many draws so the payment schedule reflects the actual work accomplished as close as possible.

    Some minor work though can mean a 50% down with a 50% due at completion. NEVER pay a contractor more than 1/2 up front!!

    Also, the draw or payment schedule should be clearly noted on the specifications or contract

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  • A: In California things are differnet!



    In California it is illegal for a contractor to collect more than 10% of the total contract or $1000.00 down, whichever is LESS. At K-Co we tie payments with phases of the project. For example we typically collect 15% of the total project during the foundation phase. This continues throughout the project until the completion payment, which is typically 10%. The home owner definitely has control as to how the progress payments will flow. By signing the contract you are agreeing to pay in the way the payments are listed in the contract. Do not sign if you are apprehensive about the payments. The contractor's biggest motivation is collecting the progress payment, and if it is not deserved, do not pay. The biggest thing to be careful of is retaining enough funds to have the project completed by another contractor if your current contractor fails. We always recommend dealing with document able, ethical contractors. Talk to your local BBB, talk to your friends and family, and most importantly know who you are doing business with. K-Co Construction has won several ethical awards from the San Diego Better Business Bureau and is proud to operate our family owned business in that manner every day.

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  • A: Concerned about kitchen remodel contractor



    I am very concerned about my kitchen contract. I have already paid $1000 to save the date, ordered and paid for my cabinets, the cabinets will be delivered on October 1st and have already been informed by contractor that he will not start on time (he already cashed the check with my permission, to his credit) but already the start date has changed. He wants $8000 a t the start of the job and consecutive payments of $4000, $3500-at start of tile and $the rest a the end which will be about 600. Is there something wrong with this picture?

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  • A: Beware of your Contractor



    My contractor requested one third of a bid then walked off the job and didn't finish any of it and the shoddy work that was done had to be repaired Only give your contractor 10-15% otherwise you could be fighting to get your funds back.

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    Jan 27, 2021

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