I’m having a small project done. Just having my door frame enlarged and a new front door installed. How much of a down payment would be appropriate for that job?
What about a larger job, like a kitchen and bathroom renovation? Would the down payments differ due to project size?
This usually depends on the size of the project. Under Maryland home improvement law the contractor cannot ask for anything over a 1/3 payment for the deposit. They are also required to give you a signed contract.
I would suggest you get everything in writing (the work being performed- detailed, the items being supplied- manufacture and model numbers too, start date and time frame of to complete).
The progression payments due as the project is in progress is not governed by the State so the way I deal with this is I pick a point for the next 1/3 payment. Example if it is a kitchen I would pick maybe after the demolition is done and the flooring has been installed. This gets the project started but not too far because with kitchens the cabinets are the first thing to be ordered and everything else is worked of their completion date.
So the deposit will pay for the deposit on the cabinetry and should get through the flooring costs, leaving the 2nd payment for the cabinetry balance and other items needed to continue.
My finial payment(s) I break up into tasks and I do this to give me money to continue to the end and also to keep the client responsible for the balance.
Without having a large balance due at the end of a project, for me, has made the projects run much more efficiently and when a project is finished and everyone is paid than everybody is happy.
It all comes down to one thing communication. Be honest and receptive to the needs of the contractor as well as your needs and everything should be fine.
It depends what kind of work you are getting done. If its a small job, the contractor might ask for a 50% upfront and the rest at completion.
If the job is of a bigger nature then, you should probably do 5% at signing of the contract so that the contractor knows that you are serious about hiring them and additional 10-15% on the 1st day or completion of the demolition. The rest of the payments should be tied to the progress of the work and once the phase is completed to the owners satisfaction. The end payment should be between 10-15% as well. Make sure the payment plan is written on the contract you sign.
I feel as a contractor myself if u are a good reliable contractor u should have accounts set up for material and have start up money I have personally never ask for a penny up front .
California law states either 10% or $1,000.00 down, which ever one is cheaper. Never give a contractor or anyone working for you more than a quarter of the entire bid unless the work performed is completed and adds up to that amount. Make sure you both have a very detailed contract signed and dated before the work starts.
A minimum down payment will very from contractor to contractor. Minimum is 5% to whatever you agree to. Keep in mind contractors don’t like having to pay for all the materials out of pocket. If you are fair they should be.
California law states either 10% or $1,000.00 down, which ever one is cheaper. Never give a contractor or anyone working for you more than a quarter of the entire bid unless the work performed is completed and adds up to that amount. Make sure you both have a very detailed contract signed and dated before the work starts.