"RicodJour" wrote in message
oups.com...

Pay as you go is the only way to go for both parties.

I agree with that part as long as it's a big enough job that takes a few
days or more. For a job that takes 1 or 2 days, I work it out so that as
soon as they are done I pay them in full in person at the job site. I have
never had any problem getting reliable and reputable contractors under those
terms. A few won't do that, and that's their choice. But most think that's
fair and are willing to work it that way.

I never pay a deposit up front -- never, no way, no matter how big the job
is. A deposit just means I am on the hook with a contractor who has my
money and then I have to hope he shows up in a reasonable time or even shows
up at all. Contractors want to get paid -- that's how they make their
living. But, if I give a guy a $2,000 deposit and he therefore has my job
locked in as his, he has no real incentive to get around to doing my job
unless he is out of new work. While he's holding my deposit, when a new job
comes in that he will only get paid for if and when he shows up and does it,
he's going to want to do that job first ahead of mine. On the other hand,
if he's holding someone else's deposit, and he can then take on a job for me
in which he will get paid on the spot upon completion, he's going to want to
do my job first -- because that's new money. Often, what a contractor gets
in the form of an up front deposit is the same or more than his total profit
will be on the job. So, actually doing the job becomes a burden because he
won't make any new money by doing it.

As far as money for materials is concerned, if the contractor doesn't have
the money or the trade credit with a supplier to be able to get the
materials without me giving him the money, he's working too close to the
edge for me to want to rely on him. But, I do understand that on some jobs
the materials to be ordered are specific to my job (windows, for example)
and cannot be returned. In that case, I have the contractor decide what's
needed and place the order for materials in my name. Then I go and pay the
supplier and make sure that the materials are being sold to me and will be
delivered to me at my house -- not to the contractor. Then if the
contractor fails to show up and do the work, I own the materials and haven't
lost out. I even do this with small contractors who are trying to get
started and truly are short of cash to order materials (I do know that
people have to start somewhere, so I don't mind using someone like that). I
just have them place the order in my name, with delivery to me, and then I
go and pay for the materials. That's fair to everyone. I just don't give
him money up front and hope he follows through.

Progress payments on larger jobs are fine for me as long as I'm not out
front paying for more than was done.

I always put a mutually agreed upon completion date on the contract or
estimate. Then, if that date comes and goes and is long gone, and I can't
get the contractor to show up and do or complete the job, I can bail out and
have someone else do it. If they miss the time frame by a little, I don't
care -- stuff happens. But if too much times goes by and I find myself
chasing the guy or getting promises that he never keeps, I move on to
someone else.

And, I never nickel and dime the people who are going to do the work. I
don't get a million estimates and try to shave a small amount of money off
by using someone just because they can do it for slightly less. I usually
just get a few people 93 or 4 at the most) to give me an estimate on larger
jobs, then pick the one I'm going to use and do it. On smaller jobs, I
don't make them all run around giving me estimates. If I have someone I
think can do the job and he gives me a reasonable price I just set it up and
have him do it.