Can a contractordemand full payment before completing punch list items regarding a home renovation?

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Can a contractordemand full payment before completing punch list items regarding a home renovation?

Contractor has not completed the punchlist for work in my home. I am witholding 7-8% until he completes the punchlist.

Asked on January 17, 2012 under Real Estate Law, Kentucky

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The payment terms ought to be explicitly set by the agreement between you and the contractor--that's the best way to avoid dispute. If there are payment terms, indicating at which points the contractor should receive payment, and how much at each benchmark, those terms are enforceable.

If there are no explicit payment terms, then courts--in the event of a dispute--would most likely hold that the contractor receives final payment when the work is finally done; that is generally the norm in the industry, except if specified otherwise.


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