How long can I hold the final payment?

Until the punch list is done. Most contracts give the contractor a reasonable time to fix items (typically 30 days). After that you can usually withhold a proportional amount for the remaining defects until they're fixed. Check your contract for specific language.

Should I withhold the full final payment over a small item?

No — that's a quick way to end up in a contract dispute. Withhold an amount that's proportional to the unfinished work. A $200 cosmetic issue doesn't justify withholding a $5,000 final payment, but it does justify withholding $500 until it's fixed.

What's a lien waiver and why does it matter?

A lien waiver is a signed statement from the contractor confirming they've paid their suppliers and subcontractors for your project. Without one, if the contractor doesn't pay their bills, the unpaid parties can place a mechanic's lien on your home — even though you paid the contractor. The lien clouds your title and has to be cleared before you can sell or refinance.

Contractor Final Walkthrough Checklist

What to inspect — universal items

Project area is cleaned up — debris removed, no nails or screws left in the yard
All visible work matches the contract (materials, color, brand)
No new damage to adjacent areas (drywall, landscaping, siding, flooring)
Punch list items from earlier walkthroughs are completed
Any access panels or hidden inspections (attic, crawlspace) check out
Manufacturer model numbers and serial numbers documented for warranty

Roof

Walk around the perimeter — gutters, flashing, drip edge intact
Attic inspection: no daylight visible, no water stains, ventilation intact
Yard magnet swept for nails (especially around walking paths and pet areas)
Old shingles fully removed and hauled (verify the dumpster is gone)
Permit signed off by the city inspector

HVAC

System runs in both heat and cool modes
Filter is in and accessible
Thermostat is programmed and explained to you
Refrigerant lines insulated and clean
Condensate drain piped to an approved location
AHRI certificate matching the installed system (needed for warranty + tax credits)
Permit signed off by the city inspector

Plumbing

All new connections checked for leaks (run hot and cold)
Water heater temperature set to 120°F (per code, prevents scalding)
Shutoff valves work and aren't seeping
Drain lines slope correctly (no standing water in traps)
Permit signed off by the city inspector

Electrical

Every new outlet tested with a polarity tester (or just plug in a known device)
GFCI outlets in required locations (kitchens, baths, garage, exterior)
AFCI breakers in bedrooms and living areas (per code)
Panel labeling is current and legible
Permit signed off by the city inspector

Windows + siding

Every window opens, closes, and locks smoothly
Caulking around every opening is continuous and clean
Trim and J-channel installed cleanly, no exposed fasteners
Old material fully removed
Touch-up paint matches existing trim

Paperwork to collect before final payment

Signed final invoice with payment schedule fulfilled
Lien waiver (the contractor's statement they've paid their suppliers and subs)
Manufacturer warranty registration confirmation
Workmanship warranty document (written, dated, signed)
Permit close-out paperwork (signed inspector card)
Model + serial numbers for installed products
Operating manuals for any new equipment

If something isn't right

Write it down. Don't sign the final invoice. The conversation is: "We're almost there. Once these three items are resolved, I'll release the final payment." Most reputable contractors will fix the punch list quickly to get paid. If they push back, you have leverage — the final 10–20% is still in your account.

Lien waivers — don't skip this

If the contractor didn't pay their subs or material suppliers, those parties can file a lien against your home — even though YOU paid the contractor. A signed lien waiver at final payment is your protection. Insist on one.

Common questions

How long can I hold the final payment?: Until the punch list is done. Most contracts give the contractor a reasonable time to fix items (typically 30 days). After that you can usually withhold a proportional amount for the remaining defects until they're fixed. Check your contract for specific language.
Should I withhold the full final payment over a small item?: No — that's a quick way to end up in a contract dispute. Withhold an amount that's proportional to the unfinished work. A $200 cosmetic issue doesn't justify withholding a $5,000 final payment, but it does justify withholding $500 until it's fixed.
What's a lien waiver and why does it matter?: A lien waiver is a signed statement from the contractor confirming they've paid their suppliers and subcontractors for your project. Without one, if the contractor doesn't pay their bills, the unpaid parties can place a mechanic's lien on your home — even though you paid the contractor. The lien clouds your title and has to be cleared before you can sell or refinance.

Related guides

Before you sign

Questions to ask before you sign

Warranty plain-English

How warranties work

Reading the bid

Reading a contractor estimate

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