Obviously it varies by State , and/or the individual company .

I had a flooring guy ask for cost of material before he began, then after removing the carpet (it was Friday) he asked for a draw and never showed up.

I threatened to get a warrant for his arrest and he showed up the next Friday and finished the job.

Turns out he was a drunk, and used the $ I gave him to get drunk until he ran out of money.

We recently had some barn repairs completed. The written agreement stipulated "Materials cost" will be paid Day 1 when the project starts, with the remainder due upon satisfactory completion." Worked out very well for both parties.

I would not pay any contractor any amount up front, unless it was such a small amount I wouldn't care if I never saw it again.

I don't want to hire a contractor who can't buy the materials without my money. That shows me they are too small or too broke to handle their business. There is no recourse against that guy if he vanishes. He has no money to get back. They have recourse if you don't pay because they get an M&M lien if you don't pay. That is a powerful tool. You don't have shit to protect you.

I have handled too many disputes with contractors.

I am often on both sides of this fence, pun intended.

During times like this when everyone that is any good has as much work as they can handle. No one I know unless they know you or you are a friend of a friend, gives you a slot until you pay a deposit or sizable money on the day of start to cover materials.

Most want their out-of-pocket materials covered up front.

If you don't want to pay like that they just move to the next job.

Most guys around here are at least one to three months out.

And people are nuts with pricing.
Quote to paint a newly plastered room. 20x20, one coat primer no trim. 2 finish coats.
I supply the paint, $300 to $1300.
I went with the guy that was $400.

quote:

Originally posted by sig2392:
During times like this when everyone that is any good has as much work as they can handle. No one I know unless they know you or you are a friend of a friend, gives you a slot until you pay a deposit or sizable money on the day of start to cover materials.

Most want their out-of-pocket materials covered up front.

If you don't want to pay like that they just move to the next job.

Most guys around here are at least one to three months out.

That is pretty much where we were when the price of materials leveled off and all the contractors were booked out for months...you're basically buying your slot in his schedule

Thanks guys. I still haven’t gotten the quote- he was here on Tuesday, so I’m hoping that I’ll get something reasonable in the next few hours..
He seemed very nice - he had just taken over a business that had shut down, so I can understand why he might need initial funding for supplies. I just hadn’t ever experienced this before - certainly 50 down and 50 on completion, yes that’s been typical where I am, but this was new to me. I’ll update if anything transpires.

I can’t believe the SF braintrust hasn’t driven this question home…

Do, or will you have a signed contract???

Assuming that you’ve done your due diligence and verified that the company is legit then paying a deposit up front, with a signed contract stating the payment terms is normal in the trades. Those of you that have never paid a deposit up front are dealing with “good ol’ boys” and while they still exist and many of them are great craftsman that is not how most smaller contractors run their business.

As an example, as I sit here we are having a major project done in the back yard. It includes grading, digging a pond, installing a flagstone walkway with steps down a steep embankment as well as a large boulder retaining wall and paver patio. The cost is approaching 6 figures. The contractor sent me a proposal to review and sign which included payment terms of a deposit, a payment when they showed up and a large final payment upon completion.

If you’re not sure if the company is legit then you should not hire them in the first place…

quote:

Originally posted by smlsig:
I can’t believe the SF braintrust hasn’t driven this question home…

Do, or will you have a signed contract???

Assuming that you’ve done your due diligence and verified that the company is legit then paying a deposit up front, with a signed contract stating the payment terms is normal in the trades. Those of you that have never paid a deposit up front are dealing with “good ol’ boys” and while they still exist and many of them are great craftsman that is not how most smaller contractors run their business.

As an example, as I sit here we are having a major project done in the back yard. It includes grading, digging a pond, installing a flagstone walkway with steps down a steep embankment as well as a large boulder retaining wall and paver patio. The cost is approaching 6 figures. The contractor sent me a proposal to review and sign which included payment terms of a deposit, a payment when they showed up and a large final payment upon completion.

If you’re not sure if the company is legit then you should not hire them in the first place…

Of course you should have a written agreement, but it is no magic bullet against bad contractors or crooks. They'll sign a contract. It isn't extra-enforceable with a written agreement.

^^^
That’s where your due diligence comes in…

This message has been edited. Last edited by: smlsig,

As a typical crook contractor I do not routinely ask for a deposit on a job unless circumstances are out of the ordinary, but I am not in the retail market. I do know that in the retail market around here it is fairly common to see deposits of 50% of the before tax contract cost before a customer will get a scheduled slot for for the work.

Sure, I’ll require a contract. The same company did the work on the original fence 20 years ago it’s just that they shut down during Covid and it’s been recently bought by someone else using the same name, entity, etc.
When I did the original work with them 20 years ago it was 50 down 50 on completion which I was fine with…they came back and did some more work during the interim with resetting one of the posts that heaved. These are just new terms verbally shared with me I have yet to see any estimate or contract and I was curious if this is now the new normal (33 33 33). As I said I’ll certainly update as soon as I know more but I was curious as to your experiences and I know we have a bunch of tradesmen here that might shed light.

Not the same situation, but in my case payment is typically at completion. My fence work is done by my usual Handyman, and he just includes the fee into the monthly settlement. Sometimes he asks for an up-front amount to buy materials, but not always. He's been my Handyman for 25 years and I trust him fully.

flashguy

quote:

Originally posted by 71 Truck.

When I moved to Florida I needed a fence. When I moved here it was still very rural.
I found a local feed dealer who also did fences. He came to my house and gave me a verbal price.
I asked if he needed a deposit and a sign contract to start. He reached out his hand and I shook it and said, when I am done if you are happy with the job come to the store and pay me, boy have time changed. That was almost 24 years ago.

I guess it would all depend where you live.

I’m in semi rural Florida and when we moved here in 2021 same thing a house painter hired in April and knew the house would be vacant till we moved in June waited till we got here for us to inspect and make payment in full after we asked for some touch ups. And at least 2 other local self employed folks waited till I was happy with their work before payment. Including a well guy, septic guy and an arborist and the pool company came by to show us how to run the stuff after they got it filled and cleaned up and running. Again several of these vendors all waited and knew it would be 2 full months before they would be paid. And because they all behaved honourably and I liked their work I have used the pool guy for 2 years now on a monthly maintenance the well guy has been out a few times. And I’ve given their names and recommendation to freiends and family here. Dreading an HVAC need. Wife’s uncle is retired HvAC and he’s since moved to further rural Alabama.

I did give a 10% deposit for a whole house back up Generac but the all-in cost will nearly be 18k so that’s a big amount they are expecting upon installation.

This is roof and not fence, but my story goes like this. I met the contractor, had a handshake deal. The next day, a phone call made the price and timing a little better. The crew showed up early, did the job, and cleaned up well. Over a week later, and I'm chasing the rep trying to pay him. I texted him yesterday. His response was essentially, "you're on my list. I'll catch up with you shortly."

If someone owed me that kind of money, I'd be on their porch within the week!

Plumbers contracts usually stipulate 33% 33% 33%.
Underground, rough-in, and set fixtures. Maybe get another quote or 2 for the fence.

The AC OD unit we just had put in for some family we had to give the installer a little bit more than half down. If he is reputable I don't see a problem. Vet him out well before you give him any money. Good luck Irr.

We've paid for materials up front but that's it.

On a relatively small project like a fence, I wouldn't pay anything up front. If the contractor is a well established company that does a lot of work in the area, he doesn't need upfront money to buy wooden fencing. (assuming it's wood). I also wouldn't contract with any company I don't know of (personal recommendations, see their logoed trucks around town, has a web site with a gallery of pictures of finished projects, answers the phone professionally etc.) I've had a number of fences put in or repaired over the years and have never been asked for cash up front. I also had a pretty expensive electric gate installed across our driveway. Again no up front cash requested.

Now expensive remodels are a different story. It's common practice to pay some upfront money and even some payments as the project works through. Again, know the contractor. No "Chuck with a truck"