Construction projects are financed and paid several different ways. Payment schedules need to be agreed on and included in the construction contracts, prior to work commencing. Here are a few common methods of payment:

a. Milestones: This method, which we commonly use, is based on construction milestones rather than percentage complete. This is an easy way to determine a completion point. (I.E… payment will be made after Framing is complete).

b. Percentage complete: The contractor takes payment at project percentage complete stages (I.E…15% complete). You must understand construction processes and evaluations or have a consultant confirm the percentage is accurate.

c. Bank financed structure: Often the bank determines at which stage of construction they will release draws to the owner. In this case the contractor needs to determine if they can work within the proposed payment structure.

d. Labour Only: If your contract is labour only, then payments may be made weekly or bi-weekly to the contractor. A smaller deposit (if any) is also needed, as there are no materials provided.

e. Monthly: Often this method is used with Cost-Plus contracts. Contractors provide a monthly summary of labour costs and material receipts, along with the agreed management fee.

The 2/5/10 Warranty applies to Residential Multi-family and New Homes. This is a Provincially mandated requirement. Only a Licensed Builder or Developer may apply for the warranty coverage. The Warranty is underwritten by designated Insurance companies. The city will not issue a building permit until the warranty is in place.

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