How to Pay Your Handyman or Contractor

Underestimating payment schedule

It’s unfortunate that people tend to underestimate payment schedules and conditions, especially in small remodeling projects.
Suppose your contractor didn’t include a payment schedule in the agreement and was happy with a small retainer and the lump sum final fee payment at the project completion date. Sounds good, right? Well, only if they stick to it! Because this is rarely the reality, especially in projects that go over a period of time.

It’s important to ensure you agree on a clear payment schedule before proceeding with the work for a few reasons.

• Firstly, although it’s not professional, it’s not uncommon for a contractor to stop working until you adhere to their payment requests. You may find yourself forcibly agreeing to payments that haven’t been discussed appropriately, and these may not reflect accurate work progress.

• Secondly, disagreements happen, and it’s no fun when you find yourself paying more than what the contractor left you with. This will increase the possibility of getting into a stressful claim process!

What is a payment schedule?

It can be challenging for homeowners to determine the payment schedule for their construction project. Contractors typically possess more knowledge than homeowners in the construction process. Payment schedules can be identified as several fee percentages against delivered work and material percentage, or fixed numbers against specific work progress.

To establish a reliable payment schedule, it is recommended to hire a designer, a client representative, or a project manager who can evaluate the work progress and approve payments. They can be paid hourly or per visit. Alternatively, you can consult with a friend who has construction knowledge to assess the work progress against payments.

It is also beneficial to put a clear scope of work in the agreement that includes all activities and materials. Clarifying work progress, phases, warranties, and inspection schedules can also help to define payment entitlement.

To make things easier, you can check out our editable professional bathroom agreement template which includes a detailed payment schedule for bathroom remodeling.

Bathroom Remodeling Agreement Template – Tayara Home

For more information, check our articles:

How to define a scope of work?

4 Important things to agree on with your contractor

How to negotiate your remodeling work timeline

5 Amazing Tips for Hiring the right contractor or Handyman

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