Mistake #1: Paying Too Much Upfront
Never pay more than 20% before work begins. A contractor asking for 50% or more upfront is a red flag. Legitimate contractors have supplier credit lines for materials.
Safe rule: 10-20% deposit, then milestone-based payments as work is completed and verified.
Mistake #2: Not Getting Everything in Writing
Verbal agreements are the number one cause of remodeling disputes. Every change to the original scope — every single one — should be documented with a signed change order that includes the cost impact.
Mistake #3: Paying Before Inspecting
Always inspect completed work before releasing payment. Walk through each milestone with your contractor and verify the work matches the agreement. Take photos for your records.
Mistake #4: Ignoring Lien Waivers
A lien waiver is a document where a contractor or supplier waives the right to file a lien against your property for the amount they've been paid. Without these, a subcontractor who doesn't get paid by your GC can put a lien on your house.
Always collect lien waivers with every payment.
Mistake #5: Not Tracking the Running Total
The most expensive mistake is the most common: not knowing your running total. When you lose track of cumulative spending, you discover you're $15,000 over budget when it's too late to adjust.
Protect Your Investment
All five of these mistakes share one root cause: lack of financial visibility. BuildLedger gives you a real-time ledger of every payment, invoice, and change order — so you always know exactly where your money is going.