** Contractor Payment Problems

Tips from Real-Estate-Agents.com

The Problem

Misunderstanding of payment terms between general contractor and customer. Homeowner could potentially end up with unfinished work or messy clean up.

How to Solve

Include payment terms in the written contract. Create a payment schedule upon which you and your contractor can agree. Payments should be made in steps as the work is completed. If at all possible, make sure a final payment of at least 10% is made when the job is completely finished and clean up is complete.

-- Tips courtesy of Service Magic