Deposit in Excess of State Maximum

Steve Murphy · 2005-04-04T20:04:25+00:00

I've just hired a contractor to replace some French doors on our house. Wedid due diligence in the bidding process, and hired the contractor that wefelt best about. So far, so good.However, in their contract, they required, in addition to the maximumallowed by State law, another deposit of 36% of the total contract, beforethey start work. In this case, we're talking about 3-5 weeks before theystart work. This contractor checks out in every other way, and the other bidders allseemed to be requiring the same amount up front. They way they tap dancearound the law is buy sending in a two-man crew to "re-measure" the workbefore ordering the doors. This, they claim, constitutes the start of work.So my question is this: Is this an accepted way of doing business; and ifso, doesn't it completely side-step State contracting law?I assume that this law was enacted to protect consumers against past abuses.

Apr 04, 2005 20 Replies

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scott_z500 21 years ago

If they are custom doors, then a deposit would be required to cover the cost of non-returnable merchandise. I see no reason for a deposit for using something that is a standard stock item. I'd stay away from them.

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