Nick Perry breaks down how to pay contractors without getting burned. Use the DDFC method: 15% deposit, 25% at demo start, 30% when forms are set, 20% on completion. It keeps cash flow aligned with actual work instead of handing over 50% upfront.
15%.
25%.
30%.
30%.
Four stages (Deposit, Demo, Forms, Complete).
If a contractor ever asks you for 50% up front, tell them to kick rocks. My property managers have hired hundreds of contractors for my rental properties, so use their DDFC method to get the best work. The first D is for 15% deposit because you want to show them you're serious. The next D is for demo. You want to pay 25% when the demo is started so they can handle dump fees and get the ball rolling with the cash flow. Then F is for forms. You want to pay 30% when forms are set so that they pay their carpenters, buy more material, and ensure everything is running smoothly. Finally, C is for complete. You pay them 30% when the job is complete to your satisfaction. So next time you hire a contractor, remember.
