I am not sure about Pennsylvania, but in CA the LAW is 10% but not more than 1000$
Some contractors are different. If it is a special order item chances are you must pay for those materials before they order. Some will just pay for it and charge for it at the end. I would recommend checking to make sure they are licensed and insured. And never pay more then half down, other half after completion.
Whenever I do an installation, I require at least half down to cover materials unless I’m charging labor only. Then, I have the customer pay for equipment. I’ll do half the work for half the money. Then finish the work and collect the rest of the money.
Down payment to a contractor is one of your BEST methods for judging the reality from sales pitch. A “deposit” paid is just that, a deposit, and should never be anything more. Anything different take as a red flag. Deposits are to secure a position in scheduling calendar, not materials, not labor; these types of statements saying they “need the money for” are your neon sign of danger.
For specialized items, additional payment may be needed, either paid directly to the manufacturer, supplier, or upon invoicing from contractor stating clearly to payment of that effect.
Monies may be paid for materials AFTER the materials are received, and received means on your property in your possession.
Financial stability is a very important factor in selecting your contractor, if they are financially unstable one has to ask, “why”. And if they go out of business, what is your recourse for service or warranty work?
A quality contractor has built an organization, and with that the financials to be able to provide and complete an entire job without the need for funds from a home owner until completion. Why we require funds for completed work is our protection from financially unstable persons, or the rare scams, NOT to be able to provide the service.
Additionally, a competent contractor also has vendor accounts, where suppliers extend them credit for materials purchased, free of interest, for a term of anywhere between 30-90 days. If a “contractor” does not have these again the red flags of “why?” And as vendors and manufacturers are decades old industry pro’s, well if they won’t back a person one should ask: should they hire them…
Usually there is a Start fee and material purchasing that will be asked for upfront. Make sure you have a progress payment with roofer normally 25% at start 25% when half done and 50% at end to cover you and making sure the work is done.
Most roofers are NOT general contractors. They are roofing contractors. A GC is only required when replacing supporting wood. Roofer’s are the largest group of Unlicensed contractors. Buyer beware.
In PA, the down payment shouldn’t exceed one-third of the total contract price or one-third plus the cost of special ordering materials.