What is typical deposit?

11/22/2018 at 3:21:11 PM

In Alberta contractors are not permitted to take ANY deposit unless they have licensing and bonding as 'licensed prepaid contractors', which is rare + something that can be readily searched online. Unable to find similar requirements for Ontario; however a website entitled 'Consumer Protection Ontario' recommends no more than 10% deposit.

I typically pay storefront operations (flooring, cabinets, doors and moldings, stair manufacturers etc.) at least 50% up front and the balance upon delivery. Perhaps another respondent can offer some advice about how secure a deposit is in those situations - fortunately haven't run into any problems yet.

11/24/2018 at 9:01:00 AM

Hi Marie.

I always ask for 30% deposit at the signing of the contract. Then 30% when a portion/half of the work is complete. The balance when the renovation is complete.

I have not had any customers complain about a deposit. The deposit lets me know that the customer is serious about having me do the renovation and won't back out last minute. It also allows me to schedule my time to begin the renovation and to buy materials need to start the process.

I know that some busy contractors are asking for more substantial deposits. It s all up to the company on how much a deposit should be. If you re not comfortable with the amount you can ask them to reduce it.

Have a great day!

Steve Edan

Edan Home Repair and Contracting