Contractor 50% Down
Click here for Top Ten Discussions. CLICK HERE for Q & A Homepage
Receive Free Rental Owner Updates Email:  
MrLandlord Q & A
     
     
Contractor 50% Down (by Jeff [CO]) Apr 22, 2019 11:06 AM
       Contractor 50% Down (by Ken [NY]) Apr 22, 2019 11:28 AM
       Contractor 50% Down (by Jeff [CO]) Apr 22, 2019 11:31 AM
       Contractor 50% Down (by 6x6 [TN]) Apr 22, 2019 11:59 AM
       Contractor 50% Down (by S i d [MO]) Apr 22, 2019 12:00 PM
       Contractor 50% Down (by cjl [NY]) Apr 22, 2019 12:21 PM
       Contractor 50% Down (by Barb [MO]) Apr 22, 2019 12:21 PM
       Contractor 50% Down (by Still Learning [NH]) Apr 22, 2019 1:08 PM
       Contractor 50% Down (by myob [GA]) Apr 22, 2019 1:22 PM
       Contractor 50% Down (by Jeff [CO]) Apr 22, 2019 1:26 PM
       Contractor 50% Down (by fred [CA]) Apr 22, 2019 3:08 PM
       Contractor 50% Down (by Robert J [CA]) Apr 22, 2019 6:22 PM
       Contractor 50% Down (by Hoosier [IN]) Apr 22, 2019 6:23 PM
       Contractor 50% Down (by melinda [MD]) Apr 22, 2019 7:02 PM
       Contractor 50% Down (by moby [IN]) Apr 22, 2019 9:01 PM
       Contractor 50% Down (by Live The Dream [AZ]) Apr 22, 2019 10:20 PM
       Contractor 50% Down (by Steve [MA]) Apr 23, 2019 3:39 AM
       Contractor 50% Down (by Richard [MI]) Apr 23, 2019 5:48 AM
       Contractor 50% Down (by Jeff [CO]) Apr 23, 2019 5:50 AM
       Contractor 50% Down (by David [MI]) Apr 23, 2019 6:27 AM
       Contractor 50% Down (by Jeff [CO]) Apr 23, 2019 7:29 AM
       Contractor 50% Down (by David [MI]) Apr 23, 2019 7:38 AM
       Contractor 50% Down (by Ken [NY]) Apr 23, 2019 9:11 AM
       Contractor 50% Down (by Doogie [KS]) Apr 23, 2019 9:56 AM
       Contractor 50% Down (by small potatoes [NY]) Apr 25, 2019 6:54 PM
       Contractor 50% Down (by Pmh [TX]) Apr 27, 2019 12:21 PM
       Contractor 50% Down (by Shelby [IA]) Apr 28, 2019 10:59 AM

Click here to reply to this discussion.
Click Here to send this discussion to a friend

Contractor 50% Down (by Jeff [CO]) Posted on: Apr 22, 2019 11:06 AM
Message:

I am getting bids on getting a fence replaced at my house. One guy wants half upfront. I thought I'd use a credit card, but he said I'd have to pay the fee. I then told him to send me a list of the supplies needed and that I would order them and have them delivered.

Silence...

I think i dodged a bullet right there.

How is the 50% down practice handled? I am very uncomfortable with it. After all, once they have your money they can easily never come back.

--76.120.xx.xx




Contractor 50% Down (by Ken [NY]) Posted on: Apr 22, 2019 11:28 AM
Message:

A fence is only a day or two of work,there is no way he should have a need for 50% down.If someone truly acted like they were concerned about being paid I would tell them I will put it in my attorneys escrow and he can confirm he is holding it and he can write a check when the work is complete but I doubt that is the concern.The guy probably wants your money to complete the last job --72.231.xxx.xxx




Contractor 50% Down (by Jeff [CO]) Posted on: Apr 22, 2019 11:31 AM
Message:

I hear that. It's a 78', 6 and 8' picket fence. It involves teardown, removal, and reinstallation. I know there is a lot in material costs.

But still, I don't like the way he handles it. Someone else made similar comment about him in Google reviews.

No way am I going to gamble $2500. --76.120.xx.xx




Contractor 50% Down (by 6x6 [TN]) Posted on: Apr 22, 2019 11:59 AM
Message:

I agree. I don't want to pay until the job is done and I can make sure I got what I am paying for.

If you offered to buy the material and have it on site then he should have no problem.

It sounds like just one roll of fencing. I would just do it myself. Get a farm jack and pull out the bad post and just put the new in the same hole. Would save you a lot of money and if you got the materials ordered and delivered then you have done some of the work yourself already.

--73.120.xx.xxx




Contractor 50% Down (by S i d [MO]) Posted on: Apr 22, 2019 12:00 PM
Message:

50% down? No way. Paid upon schedule. Show up: I pay you 10% to get started. Half of the balance at a scheduled check point (end of day 1), then the balance due upon completion (end of day 2).

A competent, successful tradesman will not need 50% up front. Tells me he's sloppy with his business and books. I hired a roofer last week and he is doing a complete tear off (shake shingles, 3 layers), re-deck, and new architectural 25-year shingles without a penny "down". Payment terms are Net 30 days. He's got more business than he knows what to do with and it shows in the way he's not worried about getting ripped off. --173.20.xxx.xxx




Contractor 50% Down (by cjl [NY]) Posted on: Apr 22, 2019 12:21 PM
Message:

It depends on who it is. I have a few that do require 50% down up front (it typically will pay their materials, etc) and then 50% when completed.

Another one I use to use was 50% to start, 25% when half done and 25% when completed.

I have those same people that because they deal with me - I just have them start and when they finish, I pay them in full - but it depends on what it is that they are doing too. If I want doors installed (for example) then I will purchase the doors (or whatever) then they get paid when they are completed. If it's something that they need to purchase a bunch of stuff - then I'll throw them money. Others - don't seem to care. I have one now that I haven't even seen a bill from him yet - and I know I owe him quite a bit for a few jobs he's done for me.

Trust is a two way street - they need to trust you, you need to trust them. If after a job or two they "still" don't trust you - then I stop using them. Although they are also the ones that typically don't do a great job - so.... --69.201.xx.xxx




Contractor 50% Down (by Barb [MO]) Posted on: Apr 22, 2019 12:21 PM
Message:

For a contractor new to me, heck no! If normal fencing materials that can come from local lumberyard or Lowes/HD/Menards, I'm with you. Give me a materials list, I'll order and have materials delivered.

At the end of the first day, I'll provide a check for a % of the labor based on how much is done.

For a specialty fence, it depends. On my 8-plex last year, they asked for 50% of materials up front. We were ordering specialty aluminum tube for the fence, a commercial product. So, 50% of material cost up front, and the rest upon completion. For the gates around the trash enclosure, we just paid when it was completed. --131.151.xx.xx




Contractor 50% Down (by Still Learning [NH]) Posted on: Apr 22, 2019 1:08 PM
Message:

Had roofs done the last 2 years. He requires a certain % the day the materials are delivered. Another contractor I use does want some money up front to order supplies. I know and trust him so I do that. We requires money at completion or every Friday if itís a longer project. I think he has been burned by late and no payments which is why he operates that way. --24.61.xxx.xx




Contractor 50% Down (by myob [GA]) Posted on: Apr 22, 2019 1:22 PM
Message:

I never ever NEVER allow contractors to order my supplies. They give me the list-- I have it delivered from lowes for 29.00. This way when supplies are left over I GET to bring them back for the credit. All estimates must break down labor/materials.

On big jobs: its a line item list. I just tell them I may have this in my warehouse and we'll just use mine. It keeps the estimate honest.

Its a crime what these contractor are doing. They return their over estimated supplies-- while the owner is away. Get gift cards for 100's -- then walk out to the parking lots and sell them for . $.50 on the dollar to people like me. They get cash and the owner is scre***. --99.103.xxx.xxx




Contractor 50% Down (by Jeff [CO]) Posted on: Apr 22, 2019 1:26 PM
Message:

6x6, I should have been more clear. The fence is 78 feet long and is 6-8' high.

Sid and Barb, I agree.

Cjl, yes, trust is a 2-way street. This contractor moved out of this neighborhood, where he was renting. I have lived in in my house since 2005. It's worth about $650,000. I had first walked with him to my 4-plex a block away for a concrete job. That property is worth around $900K and I have owned it since '97. Pretty stable. --76.120.xx.xx




Contractor 50% Down (by fred [CA]) Posted on: Apr 22, 2019 3:08 PM
Message:

The Down Payment should not be a guessing game.

Here in CA, it's 10% of the total job amount or $2,000 whichever is lower.

The same applies to "labor only" jobs, where you buy the materials. If you do, make sure you have enough and that your material is good quality. If your contractor has to exchange or get more materials, he will be entitled compensation for time wasted. --99.59.x.xxx




Contractor 50% Down (by Robert J [CA]) Posted on: Apr 22, 2019 6:22 PM
Message:

I am a licensed California Contractor. Here we are only allowed to receive as a down payment on a job $1,000 or 10% or the total job--which ever is less!

However, once I've given an estimate in writing, my client can ask for a "Payment and Performance Bond". It will cost us between 2% and 3% of the total contract price. Once I provide my client with a copy of the bond, I can ask for whatever I want as a down payment.

However, it is not a good idea to ever pay money upfront, only after part of the work is done under progress payments.

Sometimes a client wants me to "special order" material that is non-refundable. The client doesn't want to pay for the "payment or performance" bond. So I provide a "supply" house with my order and let the client pay using what ever method he wishes. And have it delivered to the job site.

In order for me to provide a detailed "purchase" list, I require a "fee" up front. That is to cover my time to gauge the scope of the work and materials.

When I was to build a fence for a client, they didn't want the wood to shrink and have spaces between the boards. So I had to hand pick the wood and then dry the wood out in my heated shed. Then once dried, I had to apply marine varnish to all sides of the fence boards. In this case I had the client sign a contract and provide some limited funds upfront that were non-refundable.

You never ever pay the total contract during the construction phase. When a job is complete, you should have only paid 80% -- balance only after the job is signed off permits and it's been inspected. --47.156.xx.xx




Contractor 50% Down (by Hoosier [IN]) Posted on: Apr 22, 2019 6:23 PM
Message:

If it's custom material that cannot be returned then I understand. But for "standard" items that makes no sense. I've also had vendors expect payment in cash on a Friday when they've finished at 6 pm. Big warning sign...they won't be around long. --99.92.xxx.xxx




Contractor 50% Down (by melinda [MD]) Posted on: Apr 22, 2019 7:02 PM
Message:

Never a good idea to pay 1/2 up front. Had a friend who gave half to a man who was suppose to provide and install a new furnace. He took the money and disappeared. NO payments upfront!! --24.233.xxx.xx




Contractor 50% Down (by moby [IN]) Posted on: Apr 22, 2019 9:01 PM
Message:

The way myob is handling supplies is exactly the correct way to do it if the contractor can't finance their own materials. I try to deal with reputable contractors and they never want money up front. But sometimes there will be a case of using a handyman that doesn't have the financial backing. --68.60.xxx.xx




Contractor 50% Down (by Live The Dream [AZ]) Posted on: Apr 22, 2019 10:20 PM
Message:

I seldom use contractors but when I do I usually pay for the materials and keep any left overs. If I was hiring someone for something big, I'd pay weekly draws based on performance. I certainly wouldn't give 50% "down."

Operate like a bank. The banks don't just give you all the money for your construction loan up front. You have to meet goals and pass inspections, then they dribble it out so someone doesn't just take the next flight to Vegas. Contractors understand this. If they don't they aren't much of a contractor, or they are a crook.

--47.216.xx.xxx




Contractor 50% Down (by Steve [MA]) Posted on: Apr 23, 2019 3:39 AM
Message:

For those of you who seem to like to act as your own GC, how do you handle replacing items that are damaged either upon delivery or during installation. For instance you order & have delivered some cabinets.

1. Your installer takes them out of the box, finds some damage & can't install them. Do you compensate him for his wasted time while YOU deal with fixing the problem?

2. Your installer accidentally damages one of the cabinets during the installation. Do you deal with & pay for a replacement? or Do you expect the installer to replace a cabinet that he did not provide & did not make a profit on? --96.237.xx.xx




Contractor 50% Down (by Richard [MI]) Posted on: Apr 23, 2019 5:48 AM
Message:

Any contractor that does not have a material account at a local supply store is not worth using.

If a material supply place wont give the contractor an account there is a reason.

50 percent down --- NO WAY !!! --66.188.xx.xxx




Contractor 50% Down (by Jeff [CO]) Posted on: Apr 23, 2019 5:50 AM
Message:

I don't know whether or not he has a materials account, but I bet it has more to do with his being afraid of doing the job and then my not paying. Either way, I don't care. It's not happening. --76.120.xx.xx




Contractor 50% Down (by David [MI]) Posted on: Apr 23, 2019 6:27 AM
Message:

"how do you handle replacing items that are damaged either upon delivery or during installation. "

A lot of LL here rag on lowes installations, but this scenario is exactly why I love going thru them.

"1. Your installer takes them out of the box, finds some damage & can't install them. Do you compensate him for his wasted time while YOU deal with fixing the problem?"

I don't have to do EITHER! Either he takes it back to lowes and gets a replacement, or a new cabinet is delivered and one old taken back. I don't pay an extra penny.

"2. Your installer accidentally damages one of the cabinets during the installation. Do you deal with & pay for a replacement? or Do you expect the installer to replace a cabinet that he did not provide & did not make a profit on? "

Between him and lowes. I get a new cabinet.

Further, lowes not only does not markup material prices in an install, they also do not charge 6% sales tax on them (at least in MI) --144.250.xx.xx




Contractor 50% Down (by Jeff [CO]) Posted on: Apr 23, 2019 7:29 AM
Message:

I received a quote from another contractor. Same thing - 50% down. I asked if I could use a credit card. Sure - but I have to pay the 3% fee.

Not happening. Very frustrating. --76.120.xx.xx




Contractor 50% Down (by David [MI]) Posted on: Apr 23, 2019 7:38 AM
Message:

I am okay with 3% fee , given the credit card protections --144.250.xx.xx




Contractor 50% Down (by Ken [NY]) Posted on: Apr 23, 2019 9:11 AM
Message:

If I have to get materials I am paying someone as an employee,if they expext to be paid like a contractor then they need to go get there own materials and I shouldn't be holding there hand to help them get it done --72.231.xxx.xxx




Contractor 50% Down (by Doogie [KS]) Posted on: Apr 23, 2019 9:56 AM
Message:

I have a fence needing replaced right now. 2 bids for about $6k each. Neither has asked for any money down. $3k seems a bit much to put down with no guarantee. Neither bid was from one of the "big boys" in town. I may be ok putting 50% down with one of those guys because of their reputation around town. Their bid would be significantly higher though. One of the smaller guys, I couldn't do that. I would be ok paying as soon as job was completed however. I think that would be fair. --72.209.xxx.xxx




Contractor 50% Down (by small potatoes [NY]) Posted on: Apr 25, 2019 6:54 PM
Message:

I typically will do one quarter or one third down 1st day of work if it is not material intensive or when I sign contract and there is heave material cost. Work it out w/ contractor what phase of construction triggers next payment. Always hold back last payment or 20% till job is inspected.

Try going to a fencing supply yard and looking at the contractors coming in or ask at the counter if they recommend anyone.

Remember their incentive is that they can file a lien against you. You are out of luck if they default on you. --100.2.xx.xxx




Contractor 50% Down (by Pmh [TX]) Posted on: Apr 27, 2019 12:21 PM
Message:

it is usual to issue draws as work is completed. I have never paid a down b4 work starts. the contractor can always put mechanics lien in the property if not paid. --104.218.xxx.xx




Contractor 50% Down (by Shelby [IA]) Posted on: Apr 28, 2019 10:59 AM
Message:

The only time we paid 50 percent down was siding a house. They bought all the siding though, well known company in town so I knew they wouldnít run off and not finish.

Iíve had insulation done on most rentals and no money due until itís done. Iíve had a kitchen redone, floors, doors, etc and I bought the material so I paid labor after he was completely done. Iíve had 2 fences done and no money required until the bill comes in the mail a week later. --173.26.xx.xxx



Click Here to send this discussion to a friend
Report discussion to Webmaster


Reply:
Subject: RE: Contractor 50% Down
Your Name:
Your State:

Message:
Contractor 50% Down
Would you like to be notified via email when somebody replies to this thread?
If so, you must include your valid email address here. Do not add your address more than once per thread/subject. By entering your email address here, you agree to receive notification from Mrlandlord.com every time anyone replies to "this" thread. You will receive response notifications for up to one week following the original post. Your email address will not be visible to readers.
Email Address: