How much to hold back for incomplete job

[java]

Same situation on our job years ago. Small trim missing. He said she said. Final payment was about 1/3 of the total. They wanted similar everything but $500. I said no way. Job not done. Final payment comes when job is done. Miraculously the piece arrived within a week and was installed. They got their $$.

 

[ronandannette]

Same situation on our job years ago. Small trim missing. He said she said. Final payment was about 1/3 of the total. They wanted similar everything but $500. I said no way. Job not done. Final payment comes when job is done. Miraculously the piece arrived within a week and was installed. They got their $$.

Miraculously? Do you assume that if you had paid them the trim would never have arrived or been installed? You assume the contractor was intending to rip you off? What made you decide to do business with a company you felt you couldn't trust in the first place?

 

[tvguy]

As the wife of a contractor, I have some sympathy for him, since there are bills that have to be paid, no matter what, and many contractors run very lean.

Since you know that the piece of trim is coming (per the designer), it would not be impossible to have someone else install it if your contractor would happen to renege. Popping in a piece of trim is not extremely difficult, especially if the rest is already there. Personally, I'd short him the $500 until the job is done, but if you're more comfortable with $1000 go with that.

Terri

I guess it depends on the contractor
I just finished a complete remodel, 6 figure job, and the contract was structured with with a down payment, 3 step payments due at very specific points of the project, and final payment which amounted to about 2% of the total contract price when the punch list was done. No way 2% would have paid for the little odd and ends to be done by someone else if the contractor walked away. I was a little uncomfortable, but it worked.
The reason I was a little on edge was when we added on 20 years ago, another contractor did the job. His contract specified the maximum down payment allowed of $1,000 (in California) and 3 step payments, the last payment being one third of the total project price. Both contractors were sole owners, but the first guy I used had working capital and a line of credit to help pay his costs until final payment was due.

 

[java]

Miraculously? Do you assume that if you had paid them the trim would never have arrived or been installed? You assume the contractor was intending to rip you off? What made you decide to do business with a company you felt you couldn't trust in the first place?

No I trusted them. However, I also knew how hard it would be to get the "trim" guy back once they started the next job. I didn't want to wait around any longer (job had extended by 3 weeks and I was 9 months pregnant kept telling them if they didn't finish one of them was going to have to drive me to the hospital) ultimately I was very happy with the job they did. They had done other jobs for us. Our trim issue was contractor based(we used their designer) I do believe they had the trim piece but didn't want to pull the guy from the next job. I am sure they would have come back eventually but a financial incentive helped.