Downpayments for home remodeling/repairs

[Jenson71]

Is this common, in your experience or your knowledge, to put a down payment on a cosmetic home remodeling project (e.g., windows, roof, siding)? Would you do it?

[Boise_Chief]

Originally Posted by dlphg9

As an ex-GC, I'd say don't put any money down. The only way I would be willing to put any money down is if I could pay the supply house directly for the materials and I'd only do it for a smaller company/group of a few guys. Also those materials would be at my home, so they couldn't just take them back and get that money you spent.

A couple of problems can come up when you pay people beforehand. The main one is you lose your money and nothing gets done. Another problem you can run into when paying guys before they finish is they lose the incentive to continue/finish the work, so they either put you off because they already got your money or they make you wait and your project doesn't get finished for a year while they half ass it and show up a couple times a month.

From the other side I am currently carrying 135 k in AR 65k is well past due and I'm still fighting for a project finished last June for 25k. I worry about sketchy clients everyday and try not to go to much out of pocket on supplies. If your contractor can't carry labor find a new contractor. I am very happy to supply a dozen references. But I do finish projects that bad contractors start and screw people out of money. The worst from the last year is a couple who paid upfront 65k for a remodel and he did most of one bathroom poorly. I redid half of it and completed the rest of the project. They sued and won but it will take years to recover all their funds

[Ming the Merciless]

Originally Posted by Jenson71

Yeah, that was poorly worded. I wanted to be clear that this is not an insurance-covered project. It’s just time to upgrade my windows. I got two quotes. One does not require any downpayment but is approximately twice as much as the other company that requires a 50% down and 25% “at framing.” I so badly hate the idea of paying so much upfront that I asked the second guy if he would drop that requirement in consideration of an additional payment on the backend and he said he was not willing to carry the costs of the materials, which is approximately 45% of the project.

with windows, I can understand a higher cost up front. windows are expensive and sometimes custom sized , or need to be ordered.

honestly I wouldn't trip on it too much, if he is following the law

[Jenson71]

Originally Posted by Boise_Chief

From the other side I am currently carrying 135 k in AR 65k is well past due and I'm still fighting for a project finished last June for 25k. I worry about sketchy clients everyday and try not to go to much out of pocket on supplies. If your contractor can't carry labor find a new contractor. I am very happy to supply a dozen references. But I do finish projects that bad contractors start and screw people out of money. The worst from the last year is a couple who paid upfront 65k for a remodel and he did most of one bathroom poorly. I redid half of it and completed the rest of the project. They sued and won but it will take years to recover all their funds

My thought is that the availability of the mechanic’s lien puts the contractor at the better default position at the start of the relationship, shifting the risk more onto the homeowner in chasing a sketchy contractor. The mechanic’s lien may not be a perfect system, but it’s a better spot than the homeowner has available.

[scho63]

Originally Posted by Jewish Rabbi

Cut down on the spending on hookers and maybe you could afford to own a home bub

Then how would you get your allowance money from your Mom?

[Bugeater]

Originally Posted by Jenson71

Yeah, that was poorly worded. I wanted to be clear that this is not an insurance-covered project. It’s just time to upgrade my windows. I got two quotes. One does not require any downpayment but is approximately twice as much as the other company that requires a 50% down and 25% “at framing.” I so badly hate the idea of paying so much upfront that I asked the second guy if he would drop that requirement in consideration of an additional payment on the backend and he said he was not willing to carry the costs of the materials, which is approximately 45% of the project.

See if you can find out the window supplier and pay them for the windows. A good contractor will tell you. And as far as his labor, once the windows are in, how long does it take them for installation? A few days? I think he should be able to carry the labor on that. But absolutely, as soon as he's finished, pay the man.

[Bugeater]

We went with Champion brand windows on our 1st house. Yes they cost a bit more, but I don't recall having to put anything down and their unconditional lifetime guarantee gave us the security if anything went wrong. I don't **** around with windows, and they were absolutely worth it.

[Buehler445]

Originally Posted by Boise_Chief

From the other side I am currently carrying 135 k in AR 65k is well past due and I'm still fighting for a project finished last June for 25k. I worry about sketchy clients everyday and try not to go to much out of pocket on supplies. If your contractor can't carry labor find a new contractor. I am very happy to supply a dozen references. But I do finish projects that bad contractors start and screw people out of money. The worst from the last year is a couple who paid upfront 65k for a remodel and he did most of one bathroom poorly. I redid half of it and completed the rest of the project. They sued and won but it will take years to recover all their funds

Man, **** that. I was carrying about that in AR for a few years, and Mother**** that all to ****ing hell.

I came out whole on the thing, but quit doing business with that outfit. That level of stress is not worth it.

[Buehler445]

Originally Posted by Jenson71

My thought is that the availability of the mechanic’s lien puts the contractor at the better default position at the start of the relationship, shifting the risk more onto the homeowner in chasing a sketchy contractor. The mechanic’s lien may not be a perfect system, but it’s a better spot than the homeowner has available.

It just depends. There are no hard and fast rules. A lot of times, if one contractor starts doing something, then the other guys do it. Then one gets hungry and undercuts the other dudes in the area. So they match and blah blah blah.

My recommendation is get a LOT of different options on the table, and do your best to pick the most reputable dude, and do what he wants. The quality of the work matters way more than anything else.

[IowaHawkeyeChief]

I would pay for materials, specifically those that our custom ordered like windows as they are non returnable for the contractor. Also, make sure you get lien waivers signed after each payment.

[notorious]

Originally Posted by Buehler445

It just depends. There are no hard and fast rules. A lot of times, if one contractor starts doing something, then the other guys do it. Then one gets hungry and undercuts the other dudes in the area. So they match and blah blah blah.

My recommendation is get a LOT of different options on the table, and do your best to pick the most reputable dude, and do what he wants. The quality of the work matters way more than anything else.

This.

When someone brings up another quote with me that's lower I tell them good luck, I should hire that person to work for me if they do a good job, etc.

Most people will pay more for the company they will have no doubts about. I don't know how many jobs I've fixed that other guys jacked up that ended up costing the customer more than my original quote.

Happens more often than I'd like. Just go with the best option at the start instead of squeezing a nickel into a dime.

[dlphg9]

Originally Posted by Jenson71

Yeah, that was poorly worded. I wanted to be clear that this is not an insurance-covered project. It’s just time to upgrade my windows. I got two quotes. One does not require any downpayment but is approximately twice as much as the other company that requires a 50% down and 25% “at framing.” I so badly hate the idea of paying so much upfront that I asked the second guy if he would drop that requirement in consideration of an additional payment on the backend and he said he was not willing to carry the costs of the materials, which is approximately 45% of the project.

What brand of window do you have installed right now?

[Jenson71]

Originally Posted by dlphg9

What brand of window do you have installed right now?

No clue. I assume they are original from the house (1968 or so).

The second contractor who wants the downpayment is through Anderson Windows.

[Ming the Merciless]

Originally Posted by Buehler445

It just depends. There are no hard and fast rules.

not true..


In most places there are very strict rules (about contracts / contract law) in most places.


If youre just using a handyman, who is unlicensed and and uninsured , then ...well.. "no rules" could come back and bite you in the ass because it will all fall on you if they fall of your roof or cut their finger off at your property.


I would 1st wonder where your property is to determine what the rules are in your area...

[dlphg9]

If you are having trouble finding contractors, then I'd suggest calling the closest supply house, like an ABC Supply and ask if they could recommend a few companies.

[Lprechaun]

As a contractor I require 100% of materials paid in full.before starting the project. I require draws every Thursday for labor.
If a check bounces I don't show up on Monday.