Below are some points to consider regarding contractor payment:
- Specify payment procedures in the contract. Periodic progress payments maybe tied to phases of construction work.
- Pay annual contracts, such as those for extermination or elevator maintenance, on a monthly basis with annual adjustments for work not required.
- Obtain details of all associated warranties, plans, diagrams, schematics, sources of supplies, code numbers for paint, and information on who did the work.
- Obtain a complete invoice for your records and for the owner.
- Require that all bills show labor, supplies, fees, and taxes to avoid any disputes with government agencies.
- Inspect the work thoroughly before paying for services provided or work performed (both interim and final payments). Tie approval of each section to the building inspector’s signature.