Quote:
Originally Posted by speede5
I won't start a job without that much, it covers the materials should the customer flake out. On a big job a will do milestones, but i never start without cash in hand. I would hazard a guess there are more contractors looking for money than customers. And once the job is done it can be a pain to get paid.
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Okay but then we have to talk about a matter of size as well as legitimacy.
I did a significant renovation to my home after I purchased it and the renovator asked for 0 up front and a signed contract of engagement, which was reasonable. Basically that contract means that I'm liable for all supplies and labour costs incurred up to the point where I 'flake out.' Its legally enforceable by both small-claims court (slam dunk) or Builder's Lien. Beyond which we would pay as we went.
I'm not covering all the costs of all the materials up front, thats straight-up insane, forget the client (me) flaking out, my contractor can take that deposit and....holy crap, disappear or even worse, go bankrupt. Thats never been known to happen before other than in the OP right?
If the contractor cant handle those costs up front then that is a serious allegation against their legitimacy.
Most contractors have suppliers with 30-90 and sometimes even 180 day repayment terms, plenty of time to buy the supplies, do the work and collect payment. And if they dont have those terms, depending on the size, cost and complexity of the renovation then that would raise some serious red flags.
As I stated, if a contractor demands 50% up-front they can pound sand. They likely were planning on it anyways.