Down payments are seldom requested on routine home improvements and repairs. Larger projects are even sometimes initiated without a cash advance, although a 10% to 20% down payment is not unreasonable. If funds are requested upfront for appliances, materials, or custom cabinetwork that must be ordered by the contractor, make the check payable jointly to the contractor and supplier.

Always make payment with a check. Checks are safer than carrying cash, and provide a record of payment. If you do pay the contractor with cash, get a signed receipt upon payment.

Smaller jobs that only take a few days to complete most often require one payment upon completion. Larger jobs, however, usually require multiple interim payments. Even then, payments should be paid only for work completed, not for project amount. Always holdback some money in reserve to ensure the job is completed to your satisfaction and contract guidelines.

Another purpose for withholding some money on all payments is to protect yourself against liens that could be placed on your property by suppliers or workers that the contractor failed to pay.

All provinces, except Quebec, have lien laws that limit your liability to a certain percentage of the contract price. Unless your contractor has provided full documentation that all suppliers have been paid in full, it would be prudent to without this amount from payments, for the time allowed for creditors to register a lien on your property. This is usually between 30 to 60 days after the contract work is complete.

Even after the period of time has elapsed, you or your lawyer should check with the land registry or land titles office before paying the holdback to make sure no leans have been placed on your property. If a lien has been applied, make no more payments to the contractor until you have received notice that the lien has been discharged.

Because lien legislation differs from province to province in Canada, it would be wise to contact a lawyer to verify the rules and conditions of liens in your jurisdiction. And never hand over final payment or sign a certificate of completion or any other document that releases the contractor from further responsibility until everything you were promised has been done. Accept no promises that they will be back “in a few days to finish everything off.”

By following this step by step guide to planning a project, finding and hiring a qualified contractor, contract content and signing, and dealing with problems, you help insure the success of your project, and eliminate problems that might otherwise have occurred.