I structure payments about the same way as cm does. On jobs that are mostly labor (demo work) I usually take 1/2 half way through and 1/2 at end. I have had a couple clients ask to buy materials themselves to get credit card points, which I work the same as above. The only jobs I take full payment at the end are my commercial clients, who pay net thirty days, On a residential job "no pay till end of project" means no work with client. The only time I have had threaten client with a lien for non payment (full amount at end) was a minister and his wife, so much for trusting people. Bob, if the contractor does not make you feel comfortable enough to ask these questions then your intuition is telling you something
We ask for 1/2 down on jobs over $1000.00 up to $3000.00, after that we usually take 1/3 at a time. We don't work for guys like Eric in Texas or people that try to negotiate a lower estimate. No offense Eric but if you don't trust me don't hire me.
cm
Hello:
>
> Getting a bit ahead of myself here, but in the Spring will be having all
> new siding and
> windows installed.
>
> What is "typical" as to how the contractor is paid ?
>
> e.g.,
>
> I imagine it's reasonable to pay him the amount for the window costs (but
> not labor) early on so he
> can purchase the windows beforehand. Right ?
>
> And I guess some kind of additional deposit is also reasonable beforehand.
> If so, what approx % of the total price should this be ?
>
> How about the overall payments:
> Would splitting it into thirds, perhaps, be typical ?
> Such as 1/3 of the est. cost after 1/3 of the work is done, etc. ? >
> Really don't know how to handle this;
> Don't want to be made a fool of, but also want to do what is considered
> normal for this.
>
> This would be a contractor who runs his own very small business.
> Is some kind of "bond" normal to protect us to make sure that the job is
> completed, etc.?
> Don't want to scare him off, but If so, what and how ?
>
> Any thoughts would be most appreciated.
>
> Thanks,
> Bob
>