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Old 02-26-2010, 10:10 PM   #1
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remodeling contractor fees


Is it common for contractors to charge/expect 95% of the total project bid to be paid up front?

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Old 02-26-2010, 10:47 PM   #2
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No. What's the project?
Location, please.

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Old 02-26-2010, 10:55 PM   #3
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Kitchen remodel. Apologies, I misspoke and was just corrected(!)....it's more 80 percent. Any thoughts on what should be the up front charge to get the project started?
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Old 02-26-2010, 10:56 PM   #4
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Not usually...some I have heard 50%...others enough to cover initial material cost

Did they give a reason ?
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Old 02-26-2010, 10:56 PM   #5
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Project is in Texas.
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Old 02-27-2010, 12:33 AM   #6
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Depends, on the kitchen remodels I do, I have the customer pay the cabinet supplier direct. Doing so, the customer is more involved in the project, knows exactly what they are getting and how much they are paying for it, doesn't worry about me skipping out, it's no money out of my pocket and I'm not paying interest on cabinets that I am waiting 6 weeks for. I have done more than a few kitchens where the cost of the cabinets and materials are more than the labor.
The real question is, if you don't trust the contractor you are hiring, then why are you hiring him/her?
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Old 02-27-2010, 12:41 AM   #7
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80% would be a big flag for me. Since you already have a concern I wouldn't do anything until you make sure the contractor is ready to show proof of required state license, bond, insurance, etc.
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Old 02-27-2010, 12:49 AM   #8
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Contractor dropped.

New territory for me. Thanks, to all, for the good advice.
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Old 02-27-2010, 08:40 AM   #9
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There are laws that apply. Legally, I believe anything over 50% is not allowed. Sounds very fishy. I'll bet there was no contract?
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Old 02-27-2010, 12:32 PM   #10
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Quote:
Is it common for contractors to charge/expect 95% of the total project bid to be paid up front?
ABSOLUTELY NOT!!!
There's something wrong with any contractor that would ask for that amount up front. In my area, 1/3 is fair and resonable, and 1/2 would be very high in most cases but sometimes necessary.
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Old 02-28-2010, 08:26 AM   #11
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My kitchen is almost finished - the contractor (small 2 man shop) asked for 50% of the estimate upfront to cover materials, I purchased the counter-tops (solid surface) myself and paid half of the labor estimate for fabrication. When we met last week I paid half of the remainder and the final payment will be after everything is 100% finished.

Depending on the materials used I personally would say 50% upfront is not unreasonable for kitchen work BUT that depends on the scope of work and how much is custom.

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