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Payment to Contractors: How to Avoid Problems

Numerous articles would tell you to call the Better Business Bureau to check on the contractor’s reputation. Only a few people actually do this, and even if you do, there is still no assurance that you would end up with a good contractor. It takes a lot more than checking references to get an honest person to work for you. Be prepared to exert more effort since this would save you from stressful situations later on.

Choose a Knowledgeable Contractor

The sad truth is that just about anyone can go into the contracting business. The industry does not require some formal training, and very few contractors have a solid background about the business. This is why homeowners have to arm themselves with knowledge before picking a person for the job.

Prepare questions that you could ask a contractor to check his skills, experience and know-how. Include questions that would let you know if the contractor had been involved in any disputes regarding payment from clients. Ask how he handled this and how it was resolved. If he has not experienced this problem yet, ask how he plans to avoid disputes if they arise.

Create a Payment Schedule with your Contractor

A financially stable and honest contractor would always agree with this condition.

A good payment schedule would involve a detailed description of a specific work to be done and when and how much money would be needed. Ask the contractor to give you a detailed cost breakdown and agree on when each job will be paid. One of the common mistakes is giving a contractor a deposit as a sign of good faith. Do this and you may never see your money again.

Lastly, put everything in writing and on record. Follow these few tips on making a payment and avoid problems with your contractor.