That is a bit extreme. Contract bids are broken down into phases . Demo is the first phase as a rule. A check comes at the completion of each phase .you will find that a common place where banks are part of the it-say for example the loan agreement. That's how it's done.
Your way ,what if it's a very big job and yer in it for $50.000 or more,the clients go broke and file for devoice ? As this was happening they add on a lot material wise just because they feel like it.
What do you do with yer loss ?Do you eat it and move on ? does yer family go without because yer credit card bills require payment and int rest ?
A well written contract agreement covers both the client and the contractor.
You know you get into 1700 square feet two floors 40 offices and on the remodel lighting alone and cost oh,say $12,000 or more. That's just the lighting materials. 1700sq.ft is the roof !
so thats a lot of building !
And paint and carpet and building and demo,tile on and on -man that adds up.
They hire independents to save money . Independents don't have 3-million or more operating capital. !
And it is a well know fact on the client end that independents don't have a huge overhead that is included in the bill .
When the loan is $50,000 or less the bank as rule leaves it to the applicant to pay the contractors/contractor.However in some cases those banks want to see how it's being spent if it's a home upgrade improvement. If thats the case the money is released in phases upon completion.Bids are broken down into phases-4 or five or as many dependant upon the length of the project. I mean the client will end up paying the int rest on the credit card buy's,you got to know that.
and you run up big bills with those suppliers and they call in demand payments don't they ?
The educated homeowner in the remodel game knows how it works.
There has to be trust between the client and the contractor.
That might have to do with people asking people if they know any good trust able contractors !
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