paying contractors upfront
 

A contractor I was thinking of hiring wants one-third of the price of the job upfront. Should I give it to him?

I would not.

Not in The Villages, Not with one who pillages. Not in a house, Not with a mouse. Not in a box, not with a fox.

Well, you get the theme.

Sam I am.

The way it has been working lately is to give a deposit and then come on TOTV and tell everyone " I got ripped off!" :ohdear:

Advance payment
 

Any reputable contractor will have credit set up with his vendors to buy materials. Generally a set amount is paid on completion of certain sections of a large job, such a material delivered to the job site, rough-in etc. These amounts are worked out between both parties in advance. Retain at least one third until the job is completed, and you are satisfied. Write the final check when you have lien waivers from every trade that worked on your project in your hands.

We always see the posts about the residents being ripped off by their contractors. I've always wondered how many contractors get ripped off because the resident doesn't pay when the job is completed. I'm sure there are some residents that are over "picky' and just don't pay the bill.

No no no !!!!!!!!!!!!!!!!!

The contractor can & usually should have a lien on the property--In some states a contractor can force sale of the property to satisfy a lien.

We did for our flooring but not for some general contracting work. And we know the contractor. He didn't ask for it and we didn't offer. Once the job is completed he will be paid immediately

Contractors Lien
 

In almost 50 yrs I've only had to file 2 liens. The lien waiver is given to the customer to prove that all sub contractors have been paid. This does not mean I have filed a lien. It is important to get a lien waiver when sub contractors are involved. If the general contractor is paid but doesn't pay his subs, they can lien your home even though you paid. STUPID FLORIDA LAW. Since we don't hire subs your canceled check is all you need.

Do your homework prior to contracting for a project. Check with friends and neighbors, TOTV threads and BBB/seniors vs Crime etc. to find out the reputation and quality of work of the contractor or Vendor. Get a written contract from the contractor/Vendor.

If you are satisfied with the results of your homework, proceed with the project or purchase. There are some very reputable contractors that require some payment upfront (usually 1/3) and final payment when the job is finished. Just make sure you do your homework prior to any money changing hands.

In general, do not pay up front - run, don't walk, away from any contractor demanding that you pay up front. That being said, "milestone" payments are generally acceptable for large jobs. Contractors get a payment when certain items are completed - maybe 25% when the slab is poured, 25% when the walls are up, 25% when the roof is finished, and a final 25% when EVERYTHING is done. You negotiate how much and when (what milestone) but keep at least 25% of the total contract as a final payment. Seniors Vs Crime can provide you with some useful information concerning construction liens that comes from the Florida Department of Business and Professional Regulation (DBPR) - the folks that license contractors in this state.

Never pay upfront. We as contractors have accounts we use for up front costs. We usually get draws after certain phases of construction are completed. It shows financial stability.

No! Unless it's to pay for materials only suitable to your job.

We had Fred Nickel Tile (showroom was at Lake Sumter) install laminate flooring. They required 50% down. Is that not the norm with that type of work? That is the only time we were asked to pay anything up front.