We are in the midst of our remodel/addition and I think I can speak to what we are doing. First of all get his contractor's license number and run a check to see if there are any complaints against him. With our kitchen remodel there was one but it was a store and they were very upfront about this lady and the nature of her complaint. I felt satisfied and hired them. They were FINE.
Next, you want proof of insurance- liability and worker's compensation. No need to put a lien on your house if someone is injured.
Absolutely get at least one reference and go and see the work as well as talk to the owner and see if they were satisfied.
Our payment schedule was $5000 for plans (applied to the remodel)
$10,000 in an escrow account after signing the contract
Another payment after demolition
Another payment after reinforcing the foundation and inspection was passed
Another payment after framing is completed etc.

In CA there is a law that the contractor can't charge more than 10% intially until work has begun. Progress payments are the way to go.(I think that is the amount--Fairegold on the kitchen forum will know)
In our kitchen we ordered the cabs and then paid maybe a third to begin, a third midway and a third upon completion.
Always withhold the final last payment until all work is done. I might even put in (I forgot to do it this time) a bonus payment if satisfactory completion ahead of schedule.

As to what the Square Footage covers- I don't know. I think outside (we're adding 290) to make a new bathroom and extend the closet. Our contract states 280 but the engineer felt he could go out further on the second story than planned so we were charged for 280 but are actually getting 290.

How long? We're off schedule. We were told about 3 months but with delays and some down time they aren't totally finished with framing and it's already 3 months! I'm peeved but they did encounter far more work than planned in reinforcing our garage (first story) to take the addtion. Also the City required more than he expected in the way of structural support for earthquake codes.

Out of time now, more later if I remember!
You can email me if you need more specifics. I'm not a pro at this, but I'm comfortable answering the questions you've asked.
E

Thanks for the info.

So, when talking to the contractors, what type of schedule should I expect?

1/3 for deposit
1/3 after foundation/walls
1/3 after completion

I am not sure if above is common so I am looking for the norm. Anything else I should be aware of?

Thanks again all!

If its a big job, I think payments should be more incremental such as 1/4 etc. I'd hate to have him walk away after the foundation or the framing, but have nothing finished or usable.

OK, thanks.

What do you suggest then? This is our first big remodel so I have no idea what to expect as far as a payment schedule?

Thanks again!

I highly recommend you do a little more homework before you sign anything. Read as much as you can about contracts. I found 2 books to be invaluable: "Home Remodeling for Dummies" by Morris and James Carey, and "What the experts may not tell you about building or renovating your home" by Amy Johnston. They will give detailed info on contracts and payment schedules, among other things. Be as organized and meticulous as possible, and get EVERYTHING in writing. The more you know, the better prepared you will be--the business of general contracting and building is just plain foreign to most of us; understanding their language and how they work will benefit both you and your contractor. Good Luck!!

Lemonade makes a good point about reading up on the matter. I didn't and went with the schedule that they required, but I did run it past a friend who has way more experience in the matter.

Our contractor is saying no more than 100 days for a 500 sq foot project. We are also adding a deck as well. We paid him $30,000 at signing of contract than additional amounts are paid at: commencement of work, start of framing, start of roofing/siding, start of drywall & start of painting. Final payment is given when work is substantially complete. We are to hold back 10% of final draw amount for completion of any punch list items. Our contract was 13 pages long, the contractor sat down and went through each line one by one. My neighbor used this particular contractor for her 2 floor addition, they were there every day, left house clean each day and finished ahead of schedule and a bit under budget. They are pricey but their track record is why we chose them.

First off, you want a committed contractor. So, ask him if he'll show up on a Tuesday to put up trusses after coming down with chicken pox over the weekend. Mine did just that today. Trusses are going up as I type this.

Your payment schedule should be at milestones with amounts such that neither of you is inordinately into the other one with a reasonable holdback at the end. I don't remember all the milestones, but they followed major building inspection points.

Ditto on the commitment - eg, daily, or weekly meetings with contractor, written into contract. We have daily meeting written in.

I highly recommend a credit check and reference checks. One neighbor went on one recommendation and no checks, and ended up down that icky road of bad job, arbitration, contractor bankruptcy,etc... You can also learn alot of additional info about how the contr'r does stuff on the job, which of his people are better, etc.

In terms of payment schedule, ours is set up at milestones.

Our architect inidicated that if a cont'r asks for more than 5% up front, that might be a tip off for poor cash flow. However, in our area many reputable contractors have payment plans in thirds or fourths. If they are smaller - working on 1 or 2 houses at a time, they tend to do it in larger sums. If thier credit and references are solid, I do not see a problem with this. Good luck.

I hope this helps, even though its 10 days after your original post. My only gripe with my contract was the payment schedule. It is divided into 8 payments ($200k+ job) of various sizes tied to milestones, most of which are the major inspections. We ended up with three payments nearly on top of each other since I didn't appreciate that three of the inspections followed fairly closely. As a result we are now in just a little deeper than the progress would dictate. The next time I would write the payment schedule to be tied to work completed, in addition to the inspections. Fortunately our GC is a totally honest and stand-up guy and I have no issues with paying according to the agreed upon schedule.

Oh, another thing that I am not satisfied with in regards to our contract is the issue of 'allowances'. Some of the allowances are specified as $/lin.ft. or $/sq.ft. This is for the kitchen cabs and counters, as well as some other things. These are of course tied to actual total dollar figures based on the architectural plans which are part of our contract. I would insist on total dollar figures in the future and have these be split out in the payment schedule according to when those particular items are to be installed. As it stands there is a little room for interpretation as to exactly how many linear feet of cabs are in that drawing. Yuck.