I found out today, the hard way, that Arizona has a law specifying exactly how a pool contract is to be paid for a pool construction or renovation job. Yes, we sure would not want to leave it to individual choice and negotiation to determine contract terms. The craziest part is that I am required, by law, to pay 100% of the cost of the job to the pool contractor before the gunite or finish coat of the pool is shot. In other words, I must pay all of the contracted price before the job is complete with no hold back.
This is absolutely crazy. I have never in my life not had a hold-back in a construction contract. Three times (all with my company) I have had contractors go bankrupt or disappear before the job is complete, in at least two cases leaving so much work unfinished that even the hold-back was not enough to cover the loss. Typically, contractors bolt before the punch list is complete, and only the hold-back keeps them focused at all on finishing the job to my satisfaction. I am not happy, particularly since Phoenix pool contractors are going bankrupt right and left in this economy.
This is yet another example where "regulation" in fact means "in the tank for favored industries that make campaign contributions."