I have finally selected a contractor to renovate a room in my basement including putting up dryall, electrical plugs, carpets, suspended ceiling etc. Do I ask him for receipts as I go, (for example receipts for the drywall, plugs, etc.) or do I just pay him the agreed price that we both agreed on. Please let me know, as we will be starting the room within this coming week.
Answer:
You agreed to a price so what good would the receipts do you? Let him do his work and pay the man holding back 10% for thirty days after all work is done to be sure he's paid off all his sub-contractors, workers and suppliers. This is a legal technicality in many jurisdictions and where it is legal, it doesn't even have to be in the contract to the best of my knowledge. Without the hold-back, you may be liable for all of the above under given conditions.
Courtesy of Ren Molnar, Construction Consultant at HomeFocus.com. I can also be reached at (613) 748-3003 and Home Focus – The Radio Show is broadcast live 8 to 10 A.M. (Ottawa, Ont. time) on Saturdays on www.cfra.com. In the interests of retaining credibility and in fairness to all, I do not recommend prices, people nor companies for various projects.
