Is it normal for an eaves replacement company to request deposit? I worry about handing over cash before a job. What happens if they just spend it and don't show up? If it's legit and/or normal... how much is considered normal?
In my opinion depending on how big your job is, there shouldn't be any deposit needed for eave replacement. I don't recommend giving deposits for jobs under 2000.00 which most eaves are. If they don't have credit with their suppliers don't hire them.
The deposit is not required for major companies. If you pay deposit, you have to pay by check and take receipt.
Usually deposit up to 5% from contract price. This operation better to do in the office of this company.
I wouldn't trust a company that requires a deposit unless it's a huge job requiring a lot of upfront costs... A simple contract signature would suffice.. Personally I've never asked for a deposit on jobs less than 15000 in material alone, I just have a contract signed which is legally binding.
I always take deposit on all jobs, 5-10%.
I provide contract and receipt.
On jobs under 3000 balance is usually paid at completion.
Unfortunately I had customers that change their mind when crews coming for installation.
If you don't trust contractors - don't deal with them.
Yes, it's relatively normal for roofing or eavestrough companies to request a deposit. Sometimes contractors have to custom order materials and / or colours specific to your job and don't want to be stuck with the materials if the client backs out. As a contractor, we request a 20% deposit on all our projects since 1981. It also shows that the client is serious about getting the work done, and won't change their mind about having the work done. For us, some customers don't feel comfortable giving a deposit so we don't take one (very few exceptions). The only problem is that about 50% of the time these customers change their mind, cancel and we have nothing to keep as a deposit so we are left with excess stock of materials that were ordered specific to your home which could be very difficult to use on another job.
I agree with Kershan. A deposit not only pays for some of the materials, it also ensures that the homeowner is serious. If I schedule my time to come and have to purchase materials for the job, a deposit has to be left. If the homeowner cancels last minute, I've wasted a my time running around, scheduling and now returning unneeded materials. Some special order stuff is non refundable. It also shows us, that the client is serious about the work and they intend to pay for it. I NEVER spend MY money on another person's house. If they don't pay at the end, I've lost out on labor, not materials and labor. Sign a contract, leave a deposit and get a receipt for the deposit. If you don't trust the contractor, hire someone else.
It is very normal for an established, reputable company to ask for a deposit. Deposits symbolize a commitment from the customer to go ahead with the agreed work. The last thing a contractor wants is to schedule the work and order materials only to have the customer change their mind....this happens all the time.
However, I would caution giving deposits to a contractor that you know nothing about. Is this a contractor that your family/friends have used before? Or is this someone you found off a telephone pole? This is a judgement call that you will have to make. Regardless, never pay a deposit by cash and always ask for a receipt.
I'm assuming The contractor asked you to sign a contract. That is your commitment to get the work done and pay the full price agreed. Negotiating the terms of the contract is your right and responsibility, what to pay and when. If the contractor needs to pre-order some materials, he will require a deposit to cover those costs. Most suppliers will not refund. Also, it it common for a contractor to ask for a booking deposit. 10% is plenty to show the contractor you are committed to the project. For larger projects, as much as 30% would be normal.
Thankyou to all who responded.
I value your professional input. I can understand why some of you ask for deposits. I suppose there are people out there who bail at last minute, and a deposit helps safeguard that. But ultimately as many of you said..alot hinges on the dialogue with the contractor. If it doesnt feel right, find somebody else.
Again... thanks. I have begun my search.
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