In the event renovations are being financed by a loan, check to see if the loan authority must approve the change. Be sure you know where the extra money is coming from and how it will be paid. In this case it may be advisable to make your cheques payable jointly to the contractor and supplier. Remember that cheques are safer than carrying cash and also provide a record of payment. If you are paying cash, get a signed receipt from the contractor upon payment .
Most jobs only take a few days to complete, so usually a one-time payment is sufficient.
With larger jobs however, interim payments are common - but only for the work completed and never for the full amount. Some money should always be held in reserve to ensure the job's completion to your satisfaction. Another reason for withholding some of the money on all payments is to protect yourself against liens that can be placed on your property by suppliers or workers who were not paid by the contractor. A lien holds your property as security for the contractor's debts, even if you paid them in full. All provinces except Quebec have lien laws that limit your liability to a certain percentage of the contract price.