Ensure Work Is Up to Par Before Final Payment

Paying a contractor up front to do work for your association isn’t a good idea. If it does a shoddy job, your only recourse would be to sue the contractor for not living up to the agreement. But this can be costly. And it’s avoidable—if you protect yourself from subpar workmanship or a failure to finish the job. Having the contract state that the association can make “progress payments” as the contractor moves ahead with the work, and including a “retainage” clause, is a way to encourage a contractor to complete the job to your satisfaction.


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Community Association Management Insider helps community association managers keep their co-ops, condominiums, and homeowner’s associations running effectively and within budget — and all in the bounds of state, local, and federal law, as well as their governing documents.

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