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?

[seclark]

Anyone who does work for us, I know personally.
I’ve never paid anything down.
But that doesn’t mean I wouldn’t if they asked me.
I will buy materials myself.
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[notorious]

Originally Posted by DJJasonp

I had to report a contractor to the California board of contractors......

In California, contractors can ask for a deposit of a maximum of 10% of the total cost of the project.

They'd have to have another account set up to purchase material because 10% isn't near enough for most job material.


I charge what the material down is, and tell my customers that they will not get on my schedule or have material ordered until the check is received.

[alpha_omega]

Just had the bathroom remodeled. 25% down, balance on completion.

[TinyEvel]

We are getting hammered on home improvement this year due to all the rains.

New roof and gutters: $20,000
Crawl space sump pump, trench and encapsulation: $12-15,000
New HVAC Ducting under the house to replace rat chewn ducts.$8,000.
Termite tent and wood siding repair $6,000

Nearly 50 grand and not even anything really new or remodeled. I'm crushed.

I am gonna do the ducts myself and some of the sump pump stuff. Save about 15 grand there.

[Jewish Rabbi]

Shit's way too expensive these days to get it contracted out. Finished my basement last winter/spring for under $15k. My neighbor got it done professionally for $50k. I didn't know dick about shit going into it and honestly you can't tell the difference between the work done in the basement and the upstairs of the house. Only downside is it took 5 months to do versus probably the week and a half a contractor could have done it in.

[scho63]

Originally Posted by Jewish Rabbi

I just do my own shit so I don’t have to worry about it.

Jerking off while holding a screwdriver and wearing a tool belt isn't a renovation project.

[BryanBusby]

Originally Posted by tyecopeland

Just had a basement finishing done. Contract called for 25% due at signing. Ended up being more like 30% after total costs were calculated. I wouldn't want to be in it for more than that typically. My remodel upstairs, company asked for probably close to 25% the day they showed up to work (but I had bought 90% of the materials for that job)

What did that run total

[Ming the Merciless]

there are usually state by state laws limiting the amount of the down payment to a contractor. 10% is what it is where I live. So the max I would pay down is 10%. Then, at certain stages.. more can be requested as the job proceeds. It should be pretty clear in the contract.


Check the laws in your state. If the contractor is doing something shady or different than the law, avoid.

[Ming the Merciless]

Originally Posted by 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?

by the way - roof, windows and siding are not cosmetic IMO

[Jewish Rabbi]

Originally Posted by scho63

Jerking off while holding a screwdriver and wearing a tool belt isn't a renovation project.

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

[Boise_Chief]

I'm a contractor I require 30% or materials. If you want to purchase materials and save any upcharge I do not ask for any upfront.

[Jenson71]

Originally Posted by Pawnmower

by the way - roof, windows and siding are not cosmetic IMO

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.

[Coochie liquor]

Every company I’ve worked for doing remodeling has gotten a downpayment. They have to purchase the materials, and pay their employees. It’s pretty standard practice here in Florida.

[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.

[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.

I'd get a couple more estimates. Also where are you located?