Just read an article about a startup that switched to paying their contractors based on hitting certain project milestones rather than the usual hourly or upfront lump sums. Apparently, it's working out pretty well for them, but I'm kinda skeptical. I mean, sounds good in theory, but what if the milestones aren't clear enough or there's disagreements halfway through? Seems like it could get messy real quick. Curious if anyone here's had experience with this kind of arrangement and how it actually played out in real life...
"I mean, sounds good in theory, but what if the milestones aren't clear enough or there's disagreements halfway through?"
Yeah, that's exactly what I'd worry about too. I've done a few roofing jobs where payment was tied to milestones—like finishing tear-off, inspection passing, final cleanup, etc. It can work, but only if everyone's crystal clear on what's expected at each stage. Otherwise, you end up arguing over whether something's "done enough" to get paid... and trust me, that's no fun. Clear communication upfront is key, otherwise it gets messy fast.
That's a fair point, but honestly, even clear milestones won't save you if the work quality itself is questionable. I've inspected plenty of homes where contractors technically hit their milestones—like drywall installed or plumbing roughed-in—but the actual workmanship was sloppy or incomplete. Then you're stuck in this weird limbo: milestone reached on paper, but the homeowner isn't happy and doesn't want to pay yet. It gets awkward real quick.
Maybe instead of just milestones, there should be some kind of quality check built into each payment stage? Like, have someone neutral (or at least knowledgeable) verify things before money changes hands. Might slow things down a bit, but could save everyone headaches later on... Has anyone tried something like that?
"Maybe instead of just milestones, there should be some kind of quality check built into each payment stage?"
You're definitely onto something here. I've seen a few homeowners set this up, and honestly, it tends to work pretty well. Basically, they bring in someone neutral—usually a third-party inspector or experienced tradesperson—to verify workmanship at each milestone before releasing payment. It can feel like an extra step, sure, but it saves a ton of headaches down the line.
One homeowner I worked with had me come out at each major stage (framing, plumbing rough-in, electrical rough-in, drywall, etc.), and I'd provide them a quick report. They wouldn't pay the contractor until any major issues were sorted. Contractors weren't always thrilled initially, but once they realized it protected them too (fewer disputes later), most came around.
It might slow things down slightly, but from experience, the peace of mind and overall quality improvement are worth it. Better to catch issues early than scramble to fix them after everything's covered up...
It can feel like an extra step, sure, but it saves a ton of headaches down the line. One homeowner I worked with had me come out at each major stage (framing, plumbing rough-in, electrical rough-in...
I've seen this milestone approach work pretty smoothly on a couple roofing jobs I've been involved with. Usually, the homeowner and contractor agree upfront on clear checkpoints—like after tear-off, after underlayment, after shingles go up, etc. At each stage, there's a quick walkthrough to make sure everything's solid before moving forward.
The quality check idea mentioned earlier is spot-on. One homeowner brought in an experienced roofer (not involved in the project) to do a quick inspection at each milestone. It was pretty casual—just a quick look-over to catch anything off before it got buried under shingles. Contractors weren't thrilled at first, but honestly, it saved everyone headaches later on.
The key seems to be setting clear expectations from the start and making sure both sides understand exactly what's required at each step. If everyone's on the same page, it tends to keep things running smoothly and avoids those awkward disagreements halfway through.
