The Issue we Face:
Someone needs to decide when the rehab work on your next BRRRR is complete and payment is owed. Make sure that that discretion lies in your hands, not that of your contractor. Their opinion of “completed work” could be very different than yours.
Language in my construction agreements . . . I include what is called a “reasonable completion clause” to put the power in my hands to determine when payment is actually owed.
Reasonable completion clause: “Payment. [Final] Payment shall only be made following an inspection of the work contracted for by the Customer and only upon determination by the Customer that the work has been completed to their reasonable satisfaction.”