You engage a contractor there should never be a deposit as a homeowner. Basically, interim financing through use of credit and good business practise allows credible contractors to finance the beginning of the project. The labour cost aspect is quickly demonstrated by milestones and completion of proper work (which should be inspected by homeowner and third party agent always) only then should the homeowner pay.
If a contractor cannot provide this the red flags should be raised. I cannot believe how many people got ripped of by this contractor, including trades that he strung along. He is a complete crook. Mostly we have to feel bad for the people who spent their life savings and received nothing in return.
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