What is typically a down payment percentage that a contractor will request and what is suggested?
I normally ask for 15 -20 percent. If the initial stages call for large deposits on my part at the time of ordering such as cabinetry or custom flooring materials I will ask for a deposit to cover those expenses.
On some jobs the deposit may be as high as 35 or 40 percent.
But I must add, my clients know me by reputation or word of mouth. I am trustworthy. Not all contractors are. So know who you are dealing with.
Good luck with your project.
If you've done your due diligence and you trust your Contractor, you can assume he is asking for just the right amount he needs to get the job started. Every job is different, there is no set standard. Your Contractor needs to make sure he has the resources needed to get the work done.
Usually, the terms are laid out in the contract. You should both agree to the terms so there are no surprises later. Understand, your Contractor is accountable to his suppliers, sub-trades and employees. If you agree to pay the terms of the contract and he is doing the work according to the schedule, you must pay what has been agreed.
Every contractor is different when it comes to down payments. However, from experience I would say an average is 15%. I wouldn't accept more than a 20% down payment, as long as you are willing to work with the contractor and offer another payment upon starting the job.
Hope this helps.
Renovation Ubora Inc.
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