Contract advice

Lershac

TFP Expert
LifeTime Supporter
May 1, 2007
1,220
Baton Rouge, LA
Hi all-

About to enter into contract negotiations on my pool. A close friend advised I include a 20% holdback for 60 days after completion to guard against post-build problems.

Is this a common practice?? I know it is in larger government contracts, and the contractors build it into pricing... but does this fly on pool contracts?

Any advice? Paying cash (been saving forever) and want to get the best value for my money as well as smooth build as possible.
 

lbridges

LifeTime Supporter
Nov 12, 2009
323
Indialantic, FL
I would expect it to be a pretty rare animal.

If you require this the price will go up since the builder has to operate on his cash flow not yours. The price increase should then be the prevailing short term interest rate plus a margin.

Get lien releases from subcontractors and material suppliers (concrete company, pump filter & supplier, etc) at each stage before paying more money. Get an affidavit at the end showing all subs/suppliers have been paid, and if the pool is functioning pay the last part (in my case it was 10%) - you're into warranty at that point anyway - if you don't trust them to honor the warranty, then maybe you should look elsewhere.
 

duraleigh

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Apr 1, 2007
31,520
Sebring, Florida
I have been in business for over 35 years and, sadly, have learned the hard way that a construction contract is pointless if you, as the buyer, do not maintain financial leverage.

That said, As a contractor, I would agree to finishing the work before I got final payment, but then I would expect full payment once my work was finished. In most construction contracts, the buyer is counting on the seller's good will (reputation, honesty, etc.) that he will honor warranty work as necessary.
 

Lershac

TFP Expert
LifeTime Supporter
May 1, 2007
1,220
Baton Rouge, LA
Thanks for your input, I appreciate the time you took to reply.

Given these things then I have another question, more about the construction techniques. In our area, the soil composition is 6" topsoil then solid clay, with a very high water table. Whenever I dig fenceposts with a posthole digger, about two feet down I am digging in water in the hole. I am concerned about long term concrete cracking and wonder what your advise would be on how they should prepare the ground for concrete decking. The pool area is about 35'X45' decking with a 20X30 pool in the middle. Do they need to compact the soil and lay in any substrate (limestone or rock)? What type of reinforcement should I specify as far as rebar or mesh for the decking? I plan on a copingless cantilever deck that extends to the waters edge.
 

GCS

Well-known member
Jul 28, 2008
161
If you are lucky you may be able to hold 10% back until the job is basically done. I seriously doubt you will be able to hold it much more than a day or 2 after completion of the project. Most contractors will never agree to the terms you are proposing.

Good luck with your build.

Greg
 

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