Question Regarding Payment.

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Posted by: from Mississauga
2/5/2020 at 9:29:36 PM

My contractor is asking for full payment as the interior has been completed. My concerns are:

He has not called for all inspections (only plumbing rough in). If the City does not approve I'll never get my $3,000 deposit back. Also could be my cost if something is wrong.

The contractor also needs to complete some exterior paint touch ups and caulking around doors and windows which is part of the contract.

Also, phase 2 carried over until this spring which is the exterior landscaping because the City did not approve permit to build a structure as of yet - I am using his subcontractor to build this structure (I'm paying sub directly and have a contract with this subtractor).

The contractor is also dealing with an architect who drew the plans for the structure and the City.

What is technically the 'end' of the project? After phase 1? phase 2? I think in Ontario, subtractors have 45 days to place a lein on house. How do I even know he paid his subcontractors?


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Date/Time2/6/2020 at 10:02:09 AM

Hi Christine

Look at all details that are in your Estimate / Contract the Contractor gave you

before the job begun. Details are everything. If certain items are listed in Phase one and are completed to your satisfaction ,then that portion should be paid. If items listed as phase 2 are not complete then this work should not be paid.

If a materials deposit is required for Phase 2 demand a official deposit receipt ( Max. deposit is usually 10% except cabinets and windows ) and even place a Hold on the payment until you receive that receipt. 10% hold back

is standard after a large job is complete,30 days at the most.

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Date/Time2/6/2020 at 12:40:47 PM

Did you contractor provide a payment schedule?

Traditionally, final payment (less the 10% hold back) is due once there is an approved final inspection and the contractor has completed the entire project and removed their tools/items.

The 10% hold back is due to the contractor 6 weeks/45 days after completion.

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