When do subs get paid?
We are purchasing a home in a 55+ development. When we got on board, the house was only framed, so we have been able to customize to our wants. We will be purchasing the completed house, so the builder has been carrying the construction loan.
One big change we made was to go with our own kitchen designer rather than the builders cabinet maker. This has caused ongoing complaints by the builder, as things are not going in his normal cookie cutter fashion.
When we ordered the cabinets, our KD required a 50% deposit with the balance due upon delivery. We ended up paying the initial deposit from our deposit on the house. Cabinets were delivered this past Tuesday so our KD asked about obtaining the balance due. Her pricing was based on a cash deal so we were able to benefit from this.
The builder has informed us that they do not pay any of their subs until closing, that way they have leverage for uncompleted work. Is this normal? We won't be closing until mid-May.