How do you verify your General Contractor’s work before making the final payment

How do you verify your General Contractor’s work before making the final payment

Rosey FlahertyPro Member
Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes

My husband and I purchased our first duplex in Columbus, OH, in early August for $430K. We live in Massachusetts, and this is our first multifamily and first out-of-state investment.

We budgeted around $40K for repairs and renovations and interviewed four general contractors at the property before choosing one. The initial quote was close to our budget, but as work progressed, additional issues came up. We’re now at roughly $70K.

The original timeline was two months. We’re approaching three months, with several missed completion dates.

About six weeks in, I became concerned that our project wasn’t being prioritized. The GC acknowledged delays on their end and apologized. My husband wanted to keep the relationship positive and initially handled communication through weekly, general check-ins only.

The turning point for me was a city code violation. About a month and a half ago, a city inspector identified issues with the fence and tree branches. The GC promised to address them and coordinate with the inspector, explaining that they handled this kind of thing regularly. I trusted that assurance and didn’t follow up to confirm completion.

Last week, we received a code violation notice in the mail concerning the fence. I asked whether this was a new issue or the original issue that hadn’t been fixed. The GC confirmed it was the original issue, still unresolved roughly six weeks later.

That was when I really lost my patience and trust. Unexpected repairs are one thing, but a known issue they promised to address sitting unresolved was especially frustrating. I told my husband I was taking over the follow-up.

I have been checking in daily and asking for specific updates on each unfinished task starting last week. I’ve explained that we need the work completed promptly and properly. Still, “next week” keeps becoming another week.

We’ve booked a flight, hotel, and rental car for my husband to inspect the property on November 6. The GC has promised everything will be finished by November 5. I’ve explained that if the work isn’t ready for our inspection, the remaining payment will be delayed. With work commitments and a one year old boy, we can’t keep traveling back and forth.

My biggest concern is how to verify the quality. Even with my husband there in person, we don’t have the expertise to know whether the roof was replaced correctly or the plumbing was done properly. Looking finished doesn’t necessarily mean the work was done right.

I’d appreciate advice from investors who have managed renovations remotely:

  • Who do you hire to independently check the work? A home inspector, another GC, or separate roofing and plumbing professionals?

  • What documentation do you request before final payment? Permits, inspection approvals, progress photos, warranties, or something else?

  • How do you manage communication and repeated delays? Are daily, task-specific check-ins reasonable at this stage?

  • What would you do differently on your next out-of-state renovation?

We’re hoping to get the units rent-ready before the holidays and winter make leasing more challenging. I understand that older properties can reveal unexpected problems, but the growing cost and shifting timeline have been stressful.

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James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 934 posts · 638 votes
1d

Rosey, the verification that matters most on my rehabs is the one I don't control: the appraisal. My whole model is buy under $100K, rehab, and refinance on a DSCR loan at an ARV of $180K to $265K — so the work has to be real, documented, and countable, or the refi dies. On the conversions I do — 2/1 to 3/1, 3/1 to 3/2 — a bedroom the appraiser can't count is money spent for nothing, so permits and inspection sign-offs aren't paperwork, they're the product. Before final payment I'd want the permit cards signed, the city's violation cleared in the city's own system, and photos of the work behind the walls, not just the finished surfaces. A roof or a plumbing run you can't verify, you haven't bought yet — don't pay for it like you have.

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  • Investor · Member since 2026 · 39 posts · 10 votes
    1d

    Hi Rosey — don't release that final payment until the closeout packet is in your hands, not just a promise: permits closed, inspection sign-offs, before-and-after photos for every line item, warranties, and a lien waiver. For the roof and plumbing, hire your own eyes: a home inspector for the walkthrough, plus a different roofer and plumber for a one-hour check each. A few hundred dollars against a $70K job, and their word is the one that counts.

    On the fence violation, call the city inspector yourself and ask whether it's cleared in their system. The GC's assurance already cost you six weeks — the city's record is the only confirmation that matters.

    Daily, task-specific check-ins are completely reasonable at this stage. Put it in writing: one list, every unfinished task with a date, not 'next week.' A date that slips twice without a reason tells you everything about priority.

    For next time, I'd hold back the last 10–15% until the packet lands and tie every payment to a finished milestone. The work isn't done when it looks done — it's done when the paperwork says so. Hope the Nov 6 walk goes well.

    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      20h

      Thank you for your advice. I'm still holding 50% until the complete work is verified. I personally confirmed that the city violation was cleared after that violation notice.

  • James JonesPro Member
    Investor · Collierville, TN 38017 · Member since 2017 · 934 posts · 638 votes
    1d

    Rosey, the verification that matters most on my rehabs is the one I don't control: the appraisal. My whole model is buy under $100K, rehab, and refinance on a DSCR loan at an ARV of $180K to $265K — so the work has to be real, documented, and countable, or the refi dies. On the conversions I do — 2/1 to 3/1, 3/1 to 3/2 — a bedroom the appraiser can't count is money spent for nothing, so permits and inspection sign-offs aren't paperwork, they're the product. Before final payment I'd want the permit cards signed, the city's violation cleared in the city's own system, and photos of the work behind the walls, not just the finished surfaces. A roof or a plumbing run you can't verify, you haven't bought yet — don't pay for it like you have.

    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      20h

      We’ve only paid 50% of the invoice, and I’ve made it clear that we won’t pay the remaining balance until we can verify the work is complete. I also personally confirmed that the city violation was cleared. I was very upset when we received the notice and pushed them to address it. They fixed the issue that same day. I like your whole model.

  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    1d

    @Rosey Flaherty

    i know this wasn't your question, but it sounds like you're going to have $520K+ into this property when you're done. are you going to get enough rent to support the debt? if you're going to have it professionally managed i suspect you're going to be substantially negative each month...

    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      20h

      We expected to have the rent of $4,500 - $4,700 per month for both units.

    • Nicholas L.Pro Member
      Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
      10h

      @Rosey Flaherty

      OK. Are you refinancing when done? My concern is just how much cash you may have "in the deal," as we say - if you put 20-25% down, and paid for the rehab out of pocket, it seems like that's 160-190K, and depending on expense assumptions, a return of 4-7%. that's not terrible, but again, it's a LOT of cash sitting in one property. but if any of my assumptions are off, let me know.

  • Realtor · Memphis, Shelby County · Member since 2026 · 221 posts · 71 votes
    1d

    Rosey, this is a painful but valuable lesson, and you're asking exactly the right questions. For the verification piece: hire a licensed home inspector for a final walkthrough, and for the roof and plumbing specifically, bring in trade-specific eyes — a roofer to verify the roof, a plumber to verify the rough and finish work. A general inspector is a great generalist, but tradesmen know the shortcuts in their own trade. Documentation before final payment: paid invoices, lien waivers from the GC and every subcontractor, closed permits, and the city inspector's sign-off on that code violation. On communication, daily task-specific check-ins are completely reasonable at this stage — you are the client and the project is behind schedule. For next time, tie each payment to a defined milestone and hold the last 10 to 15 percent until the closeout packet is complete. Hope your husband's walkthrough goes well.

    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      20h

      Thank you for your advice!

  • Chicago, Cook County · Member since 2026 · 25 posts · 7 votes
    1d

    Rosey, the thing I'd worry about most is the Nov 6 walk turning into the GC showing your husband finished rooms while the parts you asked about, the roof and the plumbing, are already covered up. So make the GC prove those two before he flies.

    - Ask for the permit numbers for the roof and plumbing work, then look them up on the city's permit site yourself. You want to see "final" or "passed," not the GC's word.

    - For the roof, ask for photos taken during the job: the bare deck after tear-off (any replaced boards), underlayment and ice-and-water shield going down, drip edge, flashing at walls and chimneys, and the vents. Also ask for the shingle brand and line, and whether the manufacturer warranty was registered in your names.

    - For the plumbing, ask what was replaced and with what, photos of the new lines before the walls closed, and the water heater's make, model, and install date. If any drain lines were touched, a camera video of the main drain is cheap and shows what you can't see.

    - Have your husband run every fixture at once in each unit: all the faucets, flush the toilets, run the showers, then look under the sinks and at any ceilings below bathrooms. Have him film the whole walk so you can both go back over it.

    - Go into Nov 6 with a written punch list you made, not one the GC made. Anything not done or not documented goes on it, with the dollar amount you're holding back next to each item.

    - Get a final lien waiver from the GC and from any subs or suppliers they used before the last check goes out.

    On the cost, ask for the change from $40K to $70K in writing, item by item. Every added item should have a reason and a photo. If something can't be explained, that's a conversation to have before final payment, not after.

    Kyle

    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      20h

      Got it. Thank you for your detailed advice!

  • Matthew MorrowBusiness Member
    Investor · PA - NY - NJ · Member since 2019 · 924 posts · 322 votes
    1d

    @Rosey Flaherty sorry this is happening on your first one. Hold the final payment until you've confirmed it all: permits closed, the code issue cleared in writing with the city, and a walkthrough or photos of every item. If you can't get there, a local inspector or property manager can walk it for you. Keep everything with the GC in writing from here on. It doesn't have to be adversarial, it protects both of you.

    CORE Team | Realty ONE Group Supreme548 Reviews
    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      20h

      Got it. Thank you for your advice!

  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    1d

    Always use a third party. Simple

    7e investments53 Reviews
    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      20h

      Thank you for your response.

  • MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    1d

    I’m also sorry this is happening and also surprised someone encouraged an out of state deal like this without solid oversight.

    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      20h

      We originally planned to check on the work in person more often, but my husband started a new job, I launched my own business, and we have a one-year-old son. With everything happening at once, flying out to oversee the work has been more difficult than we anticipated.

  • Technology · Vancouver, BC · Member since 2026 · 61 posts · 6 votes
    1d

    Hi Rosey,

    You've had great advice here on the inspection side, so I'll stick to the part that's clearly wearing on you: the follow-up.

    Daily, task-specific check-ins are fair at this stage, but they shouldn't depend on you chasing every morning. What's worked for us is flipping it around. Send the GC one written list with every open item and a date next to each, and ask for a photo and a one-line update on that list every evening by a set time. If the update doesn't arrive, that's your signal, and you didn't have to spend your day asking.

    With a one-year-old and full-time jobs, protecting your own time matters as much as protecting the budget. I really hope the November 6 walk goes smoothly for you both.

    Cheers,
    Lee

    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      20h

      Thank you for your advice!

  • Contractor · Pensacola, FL · Member since 2017 · 327 posts · 157 votes
    1d

    I don't know your contractor. But I know how I handle client communications. We have a pm software that has a client portal so they can see progress pics, schedule, and messaging feature. It's something we invested in to provide better customer service. The schedule has payment milestones that get triggered upon completion of that phase. If we don't complete the milestone, we don't bill it. Change orders are also handled in the portal. Signed and paid for prior to the work being done. The schedule gets updated once the change order is signed and funded.  

    As for the inspection piece.  If you want to invest in it you can hire a home inspector.  Not to say a home inspector is always correct.  But if it gives you piece of mind and don't mind the extra 5-750 then by all means.  I'll give an example of a project we did where a home inspector wrote something on his report and we did not make any correction.  He notated lifted shingles on a brand new roof.  We build in accordance with the national association of home builders performance guidelines. We include a copy of the client version in our warranty package.  Anyway, the standard for shingles were 1/4" or more then a correction was in order.  In this case these noted shingles could not be seen from the ground and when measured they were within the tolerance in the guidelines. So we declined to replace them. 

    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      20h

      Got it. Thank you for your advice.

  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    1d

    Rosey, a lot of good advice here already, so I'll add the local side since the property is in Columbus. Before you release the final payment, look the permits up yourself on the city's online permit portal instead of relying on the GC's word. It shows which permits are open, which inspections passed and whether the roof and plumbing work was actually signed off, and a closed permit with a passed final inspection is the best independent proof of quality you can get. Do the same for the fence violation by calling the code enforcement office to confirm it's cleared in their system.

    For next time, tie every payment to a milestone you can verify, and ask for a signed lien waiver with each draw. Have a local attorney confirm the exact lien paperwork for Ohio, since that part is their territory. In my experience as an investor who renovates in Columbus, the contractors who keep a clean schedule are the ones who show you permits and photos without being asked. I'd bring in a second set of eyes before Nov 6 too, so your husband isn't walking the property alone.

    Happy to connect and compare notes.

    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      20h

      Got it. Thank you for your advice!

  • G. Brian DavisPro Member
    Investor · Hatboro, PA · Member since 2016 · 3k+ posts · 887 votes
    1d

    I’d definitely have someone independent inspect it before releasing the final payment. When you’re doing a renovation remotely, you really need another set of eyes because a project can look finished without necessarily being done correctly. I’d want copies of the permits, final inspections, warranties and documentation for the major work, and I’d have the important trades checked independently if needed. At this point, I also don’t think daily, task-specific follow-ups are unreasonable. You’ve already given the contractor plenty of time, and you’re trying to protect a $70K investment from several states away.

    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      20h

      That's what I'm concerned about for a renovation remotely. Thank you for your response!

  • Property Manager · Southfield Mi · Member since 2018 · 190 posts · 174 votes
    23h

    Hi Rosey,

    As someone who works in the GC role and also as an investor and PM, I will offer a response which may seem sort of abrasive, but I think it's fair. As an inexperienced investor out of state, it's a no brainer that you will need a third-party person who represents you out of state. This should be your Property Manager/Project Manager. Someone experienced, knowledgeable and who desperately wants to see you succeed. There is an old adage which says "a man who represents himself has a fool for a client,” The same things applies to any out of state investor who hires him/herself to self-manage a renovation from out of state. But why do we see this mistake so often the realm of REI? Because people are always trying to figure out how to get around paying for things they should pay for.

    Your GC makes his money from construction, he doesn't care or want to care about your bottom line. So hiring a GC like this is completely flying blind especially when you aren't an experienced rehabber. What is stopping him from hitting you repeatedly with cost and time adjustments? He can tell you almost anything, since you aren't there and you have no one watching, you must pay someone who cares about your fate. A good PM understands (or should understand) that it is in his/. her own best interest to make sure you are properly represented. 1. because they will inherit the property and anything the GC fails to do today will become their headache tomorrow 2. If you have a bad experience where your costs are out of control you, the investor, will likely not want to repeat the process with more properties and PM's make money when their clients scale. So, bite the bullet and hire a property manager and give them the helm.

    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      19h

      We have a property manager, but they’ll only inspect and oversee the work if we use the GC they hire. They’ve openly told us that going through them costs about 1.5 to 2 times as much because they handle everything and we “don’t have to lift a finger.” I understand the convenience, but we simply don’t have the budget for that. If we hire our own contractor at a better price, they won’t check or monitor the work for us. Would you consider this a reason to find a new property manager? Oh gosh, this has been frustrating!

  • Divin KanyamaBusiness Member
    Accountant · Seattle, WA · Member since 2025 · 618 posts · 259 votes
    19h

    @Rosey Flaherty You’re not being unreasonable—unexpected repairs are different from a promised fix left unresolved. I’d hire an independent home inspector plus a roofer and plumber for those specific jobs, ideally joining your husband on November 6. Ask for written findings and inspection limits.

    Before final payment, request applicable permits and approvals, progress photos, itemized change orders, warranties, and city confirmation that the fence violation is closed. Check records through the city yourself. Have an Ohio attorney review payment terms and appropriate lien waivers before withholding money.

    Daily updates seem reasonable now, but use one punch list with owners, deadlines, and completion photos. Next time, budget for independent local oversight, approve extras in writing, and tie payments to verified milestones, including inspections before work is covered. Don’t let travel costs or the holiday deadline push you into accepting unfinished work.

    • Rosey FlahertyPro Member
      OP
      Accountant · Boston, MA · Member since 2026 · 21 posts · 9 votes
      19h

      Got it. Thank you for your advice!

  • Real Estate Consultant · Alabama | SFR Operations Nationwide · Member since 2026 · 34 posts · 7 votes
    7h

    Rosey, you've got the paperwork side covered here, so one practical add for Nov 6. Have your husband walk the house in the same order every time, room by room, and slowly turn a full 360 in each room on video before he leaves. Open every cabinet under a sink, run each fixture on camera, and film the ceilings below the bathrooms. That gives you a record you can rewatch from Boston, send to a roofer or plumber for a second opinion without flying them out, and compare against after any punch list fixes. Over 20 years of renovations and turns, a consistent walk on video has settled more disputes than any promise. Hope the 6th goes smoothly.

  • Investor · NV and CA · Member since 2016 · 375 posts · 227 votes
    3h

    @Rosey Flaherty - I didn't read the previous responses, but I only buy a property that needs rehab if I have an overseer who has a previous business relationship with the contractor and will be checking to make sure the work is done before each draw is disbursed. I pay the overseer a project management fee for their work. They typically provide photos as work progresses.

    Do you have a realtor or property manager who can go by the property and take pictures showing what's been done? I wouldn't take the time and cost to fly out there before doing this and seeing what you can discover. And pay your realtor / PM for doing this.

    You mentioned the risk that maybe the work done was sub-par. Sometimes you never know if the rehab was done in a workmanlike manner as it would require a tradesperson to litterally re-do the work to see if it was done right, but if your overseer has a business relationship with the tradesperson and knows they do good work, that mitigates some of this risk.

    I understand how you lost your patience and I've been there, but that is literally what happens with out of state investing. Next time you'll know what systems you need to have in place before committing to a rehab and getting this done.

  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    1h
    Quote from @Rosey Flaherty:

    My husband and I purchased our first duplex in Columbus, OH, in early August for $430K. We live in Massachusetts, and this is our first multifamily and first out-of-state investment.

    We budgeted around $40K for repairs and renovations and interviewed four general contractors at the property before choosing one. The initial quote was close to our budget, but as work progressed, additional issues came up. We’re now at roughly $70K.

    The original timeline was two months. We’re approaching three months, with several missed completion dates.

    About six weeks in, I became concerned that our project wasn’t being prioritized. The GC acknowledged delays on their end and apologized. My husband wanted to keep the relationship positive and initially handled communication through weekly, general check-ins only.

    The turning point for me was a city code violation. About a month and a half ago, a city inspector identified issues with the fence and tree branches. The GC promised to address them and coordinate with the inspector, explaining that they handled this kind of thing regularly. I trusted that assurance and didn’t follow up to confirm completion.

    Last week, we received a code violation notice in the mail concerning the fence. I asked whether this was a new issue or the original issue that hadn’t been fixed. The GC confirmed it was the original issue, still unresolved roughly six weeks later.

    That was when I really lost my patience and trust. Unexpected repairs are one thing, but a known issue they promised to address sitting unresolved was especially frustrating. I told my husband I was taking over the follow-up.

    I have been checking in daily and asking for specific updates on each unfinished task starting last week. I’ve explained that we need the work completed promptly and properly. Still, “next week” keeps becoming another week.

    We’ve booked a flight, hotel, and rental car for my husband to inspect the property on November 6. The GC has promised everything will be finished by November 5. I’ve explained that if the work isn’t ready for our inspection, the remaining payment will be delayed. With work commitments and a one year old boy, we can’t keep traveling back and forth.

    My biggest concern is how to verify the quality. Even with my husband there in person, we don’t have the expertise to know whether the roof was replaced correctly or the plumbing was done properly. Looking finished doesn’t necessarily mean the work was done right.

    I’d appreciate advice from investors who have managed renovations remotely:

    • Who do you hire to independently check the work? A home inspector, another GC, or separate roofing and plumbing professionals?

    • What documentation do you request before final payment? Permits, inspection approvals, progress photos, warranties, or something else?

    • How do you manage communication and repeated delays? Are daily, task-specific check-ins reasonable at this stage?

    • What would you do differently on your next out-of-state renovation?

    We’re hoping to get the units rent-ready before the holidays and winter make leasing more challenging. I understand that older properties can reveal unexpected problems, but the growing cost and shifting timeline have been stressful.

    I would hire an inspection company to do draw inspections. This is something that you should have implemented into your general contractor agreement.

    I would require all of those things.

    Calling and texting daily. Ideally having someone in person to check on items. You could have the general contractor take a detailed video and have AI verify the work has been completed. You do not want to burn the relationship though so it is a balance.

    These are common growing pains and you will develop solid relationships with contractors as you go

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