The Magical Trick to Dealing with Contractors?
If I knew the answer to this question, I'd be a lot better off.
Sadly there are many, many untrustworthy contractors. I live in the land of South Florida where the worlds most shady contractors congregate.
In the past 5 years, I've lost in excess of $50,000 to thieving builders and handymen. I've heard of people losing much more.
I'm currently embarking on several renovation projects from medium size, to major.
I've attained various bids and many of the contractors specify payment terms as 50% down payment to start and 50% upon completion. Now there is no way on this planet I'm going to give someone a 50% down payment, especially when that equates to tens of thousands of dollars.
I am trying to work out the best way to structure the contract that leaves me with the least amount of chance of being ripped off. I was thinking of breaking the work into components and paying at intervals For example-
$10,000 renovation job
I pay X amount for purchase of materials to start, then I pay X amount for successful completion of each phase
Eg, I pay $1000 for paint and then once painting is completed I release another $1000.
Then I pay for $1000 for tiles and release another $1000 once tiling is completed.
One handyman I'm working with agreed I'd pay for materials upfront only and then pay him for his work once he completed. This is a 4 day job. Today (day 1) he asked for a cash advance tomorrow (day 2) as he is short of cash. My guess is to be strong and say no?