Nevada seems to think a deposit is not unusual. That's where you're
The last has this to say:
Large Down Payments
A dishonest contractor demands a large down payment to cover supplies
and pay workers. On most types of contracts, there is no set amount
for a down payment. However, it is a good rule of thumb not to let the
payments get ahead of the work.
If a contractor is asking for a big deposit and/or cash, that's one
thing, and it's definitely a warning sign. But you didn't say
something normal and reasonable, like not letting the payments get
ahead of the work. That is reasonable, NEVER PAY UP FRONT is not.
If a customer expressed concern about the deposit and paying for their
materials, and they weren't sending off all of these negative warning
signals like you're doing, I'd offer to let them pay the supplier
directly when delivery was made. That way they paid for their
materials that are now safely stored on their property. It's actually
safer for the owner as paying the supplier directly insures that there
won't be a supplier's mechanics lien.
Where's the risk in that? Oh, right. There is none, but it's not
about the risk for you. It's about getting something for nothing and/
or being one up on somebody. The saddest thing is that people might
actually listen to your nonsense and rule out good contractors with
good reputations that know how to run a business. That's just wrong.
Well, that settles it. You said it, so it must be true.
I tell you what, Ric. I'll do what I want with MY money, and you can do the
same. Just as with all the other readers here.
I shall, however, continue to state my experiences, suggestions, and advice
here with no need of approval from you. People can, and will, do as they
please in their own circumstances.
There's been a lot said here about deposits.
Deposits are usual and customary in today's market for custom work, special
orders, and other special circumstances agreed upon in advance by both
parties of the contract.
I started out my steel erection contracting business doing ornamental metal
in my garage. 50% down because it was custom work, and 50% upon
I did about two years of this before I grew and got into the commercial
market and got my contractor's license. In that time, I was jerked around
by so many homeowners that I was sick of it.
Once I took off commercially, I changed policies. If anyone said ANYTHING
about the deposit on custom work, I'd just put a big X on my copy, and tell
them to call me. If they did call back for the work, I'd say that I was
just too busy and they could call back every three months. Anyone who
grumped about paying a deposit for custom work would grump about everything
else, too. Usually they called me back with some long tale of woe about how
bad a job they had gotten at a "bargain" price, and could I come fix it.
"Sure, a truck and two men are $95 per hour." More wailing.
Once I got commercial, the word "deposit" never came up. They pay when the
job is FINISHED AND INSPECTED. Or they do progress payments. And then it
may take a while for the girl to cut the check.
So, while I say deposits are bad and unnecessary, I must admit that
The main thing is to know your contractor, have recourse, see their
licensing and insurance, and check things out.
As for homeowners paying for stuff up front, I have heard too many horror
stories. It's like the drunk who asks for a buck to get something to eat.
You offer to take him and buy him a burger. No, they want the buck. If the
contractor can't get the materials, YOU buy them and dispense them as used.
But NOOOOO, they want the deposit.
Many have written here, both the informed and the clueless. It is different
with different types of businesses, and areas. But business is business,
and it's just not a smart idea to pay for something you don't get.
Do you even read the stuff you write before you hit send? I know you
don't think about it.
A little while ago you were shouting NEVER PAY FOR WORK UP FRONT, now
you're telling us that you customarily did business that way? Then
you're telling us that you left the deposit thing behind when you went
into commercial work. WTF? Sure, there's no difference between
commercial and residential work, is there? Sheesh.
At least I am honest enough to tell the story. Things change in people's
lives (not yours apparently) and from one time to another, they do things
As for now, I don't USUALLY give deposits, save for custom work or special
orders. And I damn sure wouldn't give a deposit to a roofer under any
If I do your roof, I don't need a deposit from you.
I do however, expect you to sign all the papers before I deliver
product to your property so that I have a lien on your home. If you
hesitate to pay on completion, I kick your sorry ass out, auction off
your home and take my cut and give you what is left after expenses.
That's your trouble, Ric, you know more than your capacity.
Now let me think about this ................
Do I want to hit the SEND button .................
Wait, wait, I know this .............
Bye, Rick the Dick ....................
giving a down payment is the way to get ripped off. if a company
isnt big enough to wait till the jobs done before collecting
payment.send them on their way. you wouldnt believe the number of
contractors that never return after getting a down payment. he's
guessing on the wood thickness..lucas
It is also important to check out the contractors. I had a roofing job done
for $60,000 with no deposit required.
I had a siding job done for $42,000 and we paid 1/3 at the start, 1/3 after
50% complete, 1/3 at final. The company that did the job has been in
business for 25 years and they did show up the day they said they would.
Another siding contractor did not require any deposit but they were $20,000
higher on the bid.
Partly due to code and partly due to the product that is sold for that
purpose. Ask roofer to replace any bad wood. It would be highly unusual
for none to be found. And that is something you would want done.
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