Before the final payment: a punch list and sign-off checklist for your remodel

The final payment is the last leverage you have on a remodel. The FTC's advice: never make the final payment until the work is done and you're satisfied with it (FTC). Here's how to get to "satisfied" without dragging it out.

A sign-off checklist

Before you sign off and pay, check that:

• The work is finished and matches the contract and signed change orders
• Any warranty your contractor offered for labor and materials is in writing (CSLB)
• You have lien releases showing subcontractors and suppliers were paid (see below)
• The site is cleaned up. The Texas Attorney General advises not signing a certificate of completion until the work is finished, the site is cleaned up, and you're satisfied (Texas AG)
• You've walked the job and the punch list is done

Walk the job and write the punch list

A punch list is the list of small things left to fix or finish. Walk every room in daylight with the contract, the change orders, and your selections in hand. Write down each item with its location, take a photo, and agree on who fixes it and by when.

The National Kitchen & Bath Association publishes a final inspection form for its members (NKBA BMF25, PDF). Its categories make a good outline:

Cabinets

• Doors and drawer fronts line up, bumpers are on, hardware works
• No scratches or nicks; glass inserts secure; shelves and accessories in place

Countertops

• Secured, caulked, and free of scratches; backsplash installed and fitted to the wall
• Seams tight and sealed; stone or solid surface finished and sealed

Appliances and plumbing

• Each appliance installed and working: every burner, oven, hood (vented as planned), dishwasher, disposer, ice maker
• No leaks under sinks; faucets, drains, and shower valves work

Floors and tile

• Grout haze and adhesive cleaned off; base trim and transitions installed
• Grout and caulk complete, with no cracked or chipped tile

General

• Clean-up done, trash and leftover materials gone, outdoor and staging areas back in order
• You've received the warranty and operating literature for everything installed

(This is our summary for homeowners, not NKBA's form.)

Get the paperwork before the money

• Permit and final inspection. If the job had a permit, confirm it's been signed off.
• Lien releases. Ask for a conditional final release before you pay, and an unconditional final release once the payment clears. In California these are the statutory forms in Civil Code §§ 8136 and 8138 (CSLB). See lien waivers for homeowners.
• Warranties, manuals, and the finish list. Brands, models, colors, and paint codes. See what to keep after a remodel.

State rules for the last payment

Rules vary by state. Two examples:

• Texas: on residential work, the owner must keep back 10% of the contract price for 30 days after completion (§ 53.101), and a final bills-paid affidavit is a condition of final payment (§ 53.259) (Tex. Prop. Code ch. 53).
• California: filing a Notice of Completion with the county recorder within 15 days of completion shortens the time to record a lien: from 90 to 60 days for the direct contractor, and from 90 to 30 for subs and suppliers (CSLB).

Can I hold back the final payment?

It depends on your contract and your state. Many contracts tie the final payment to "substantial completion" or to completing the punch list. Read the payment clause before you decide. If a few small items remain, a common approach is to agree in writing on the list, the date, and the amount held until each item is done. If the disagreement is bigger than a punch list, see what to do in a contractor dispute. If the contractor wants the last payment early, the payment schedule checker shows how far ahead of the work you'd be. If the job needed a permit, check it passed final inspection: contractor didn't pull a permit.

Close out the project, keep the record

When you're done, RenoBinder turns your finished project into a free Home Finishes Record: brands, models, paint codes, and warranties in one place for the next repair or the next buyer.

General information, not legal advice. Final payment, retainage, and lien rules vary by state. Check your contract and your state's rules before withholding money.

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