Remember that payment is paramount. Pay your contractors in a timely fashion, in accordance with the work completed. This point cannot be stressed enough. Your payment allows the contractor to pay his or her subcontractors, vendors and suppliers.
It's important to both parties that the project remains on schedule. Delayed payment or no payment at all makes it difficult to keep workers onsite and for the contractor to maintain a business. As added protection, it's recommended that you withhold 10 percent of each gross progress payment as a retainer. Once the job is complete, pay the retainer in full.