How it work the Reno work process? A professional came and did a quotation and mentioned that need to provide $2k in advance before the work starts. Does it have a contract to sign that can protect both parts?
Thanks.
Jose
Jose,
Any exchange where you provide money before services or products are provided to should contain a contract.
Be careful giving anyone money especially before work has begun or materials have been delivered.
There is no standardized contract other than the CCDC, but residentially it is rarely used outside of large-scale projects.
If you don't know the company or its reputations be careful.
Usually a deposit is required upon signing a contract to cover materials and get you booked in. Never give someone money with out a contract.
Hi Jose,
You should sign a contract prior paying any payment. The contract should include detailed scope of work, amount, method of payment, timeline, and termination clause.
And while signing the contract, the contractor should provide an invoice with the amount to be paid along with the remaining. At this stage you are going to pay your first payment and a receipt should be provided by the contractor for your record and confirmation of payment.
Let me know if you need additional clarification
Always get a contract in writing with all details!
By law you do not have to pay a deposit more than 10% upfront before they start and then any progress payments should reflect the work done to the point of payments. However you can agree to pay more, but I would not as any reputable Contractor should have lines of credit to cover their upfront expenses. You also are allowed to hold back 10% at the end of a job as well for 45 days as per construction law. Make sure everything is in writing & signed by yourself and Contractor.
Hola Jose,
Is ok to ask for a deposit in advance. I always do, but it must be done when the full contract has been written and signed by both parties. And ensure that if for whatever reason he does not start the work and do the renovation work , that the deposit must be returned to you in full ( specify a time frame)
Make sure you check the contractor ratings and reviews.
Regards
Paul
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