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What are normal deposits for kitchen renovations?

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Posted by: from Thornhill
8/12/2015 at 4:17:48 PM

Looking to renovate our kitchen. Found a place we like, but they require a 50% deposit. Is that excessive?

REPLIES (24)
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Date/Time8/12/2015 at 7:06:35 PM

It's not excessive, its about average! Just make sure they are reputable and that you have a contract before any payments are made. Materials are costly and the business should never pay for materials out of their own pocket.

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Jeff from JTL Construction in Winnipeg
Date/Time8/12/2015 at 7:06:38 PM

That is normal to secure 50 percent as these cabinets will now go into production otherwise the company will loose all profits and even loose money if you decide not to pay at the end of production. In Wpg mb you will get your cabinets delivered and will ay the other 50 ercent before installation.

These payment schedules are a result of poor paying customers from the past and it's the only way to secure the jobs.

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Date/Time8/12/2015 at 7:24:55 PM

No. e.g. If you purchase at Home Depot, they usually ask for 100% full payment of the cabinets before ordering. I as a General Contractor will ask for 30-50% down on the full reno. Usually, this is a custom order and the cabinets were designed specifically for your job and cannot be returned or sold if your job falls through. Therefore, the costs need to be covered up front. The 2nd payment is due when your cabinets are delivered to site.

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Date/Time8/12/2015 at 7:28:17 PM

Hi Jeff,

Unfortunately there is no rules and regulations from our Government,everybody and everyone does what ever they feel like. For example if you are in commercial millwork as I was you don't receive no deposit at all, when you are finished and installed, then you forward the invoice and supposedly should be paid in 30 days and nobody does it usually is 60 days.Kitchen cabinet guys buy melamine and assemble boxes and door and drawer front even drawers they order,in most cases they have account with supplier minimum 30 days, so why would they deserve 50% if they will spend zero in next 30 days and that is if they are one of excellent payers and pay invoice in 30 days.

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Jeff in Thornhill
Date/Time8/12/2015 at 7:54:45 PM

Thanks all. Unfortunately have no confidence in the reno business so 50 percent makes me nervous. The first contractor took six months and nothing was done, so got most of deposit back. The second contractor went bankrupt a month after we gave our deposit...by, by deposit.

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Date/Time8/12/2015 at 8:07:30 PM

Jeff,

Selecting honest and reputable contractor is the job on is't own,You need to learn as much as possible before You give Him Your money.

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Robert from Electrilight Ltd. in Oakville
Date/Time8/12/2015 at 8:16:40 PM

It is excessive for non-reputable companies. But as others have said, you need to know and do your due diligence. Ask the local town office about them, check their insurances, length of business, WSIB, insurances, get the papers and build a level of trust with them prior to handing over any cash. GET IT IN WRITING. Visit their cabinet building shop. Ask for 5 previous clients over 2-3 years and call them all, visit if you can and see how the quality is holding up after a few years. I have seen many great installations look like absolute trash after 2-3 years of use. Solid wood and mitered joints last a long time.

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Brian from Next Restoration in Rockwood
Date/Time8/12/2015 at 10:26:59 PM

I usually ask for 25% down but you are responsible for paying an decorative products. This is a safer way, nobody will lose.

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Jeff in Thornhill
Date/Time8/12/2015 at 11:29:44 PM

In the end I think we are just going to reface our cabinets rather than remodel the entire kitchen.

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Date/Time8/13/2015 at 2:32:33 AM

HI,

A 50% deposit is a fair price.

The deposit works against:

- planning costs

- material costs

- securing of trades

- finalization of materials

Al-though people may think its hig, they need to think as if they were the contractor....what would they accept.

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Date/Time8/13/2015 at 7:48:03 AM

Yes it is, 50% deposit, (40-45)% upon delivering kitchen cabinets, the rest which is (10-5)% to paid upon completion of the job. This is how we charge our customers, but we sign a binding contract as well and we provide complete drawings so the customer will know what will he/she get, beside determining colors, style of doors, hardware, etc. in other words everything will be stated and outlined in the contract before the customer pays anything.

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Date/Time8/13/2015 at 11:08:15 AM

A 50% deposit is fair for a job less than $20,000.

The deposit :

- guarantees the commitment to work with other

- covers initial costs - deposits on cabinets

- covers cost of drawings

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Jeff in Thornhill
Date/Time8/13/2015 at 12:32:13 PM

I see a pattern, all the contractors feel 50% deposit is fair, why am I not surprised.

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Robert from Electrilight Ltd. in Oakville
Date/Time8/13/2015 at 1:43:01 PM

Not all of us... ;) .

Maybe a gut feeling is sometimes the best judge. Find out if the salesman is the guy actually doing the work as well. Salesmen get that job because they can sell, ever buy a used car?? lol.

Workmanship speaks for itself.

If you don't mind a suggestion, contact Home Depot installation services for a quote. Their fees may be a bit higher, but the big name has the reliability backing that no one will take your money and run. I know many people who used them and had huge success AND a big name who IS on your side until it is 100%.

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Mark from CMJ Renovations in Oakville
Date/Time8/14/2015 at 11:16:00 AM

Jeff,

You obviously are not self employed, a contractor asking you to pay 50% cost of a kitchen is normal he is not asking for any labour money strictly to cover costs, this is to protect him in the event that you cancel your order for what ever reason and he is stuck with cabinets specifically ordered for your self. Home Depot asks for 100% and you have no problem giving the Billion dollar company the money up front.

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Jeff in Thornhill
Date/Time8/14/2015 at 12:01:01 PM

Actually looking into Home Depot. After dealing with small companies, I know its not the way to go. Found the last two at the Home Show. I thought it was a place with reputable companies. Now I know anyone gets in. Last company was Greater Toronto Contractors, what a joke.

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Date/Time8/14/2015 at 1:11:16 PM

We also have a 50% deposit. If you are not comfortable giving that up front, the contractor should be able to work with you. For example, pay for materials yourself, split it into 25% increments, etc. By expressing your concerns to the contractor, he should be able to work with you, if he is a professional.

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Date/Time8/14/2015 at 3:30:50 PM

HI there,

If there building you a custom kitchen, they usually take 50% up front, 25% on delivery and final on completion. I do not know the rest of the details for your project but best you ask where your money will be spent on with initial deposit. Always have documentation of any transactions for your protection.

Regards,

Joe Giannini

Tru-Pro Renos

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Rolando from Rovimat Group Inc. in Toronto
Date/Time8/14/2015 at 4:30:04 PM

Any contractor that asks for 50% up front shouldn't be doing business. There Wil always be a risk from our part has contractors to trust a home owner and vice versa but is our job to minimize the stress created by the reno to the home owner .We take 10% on the day we start any job and after that is always a cording to a work progress payment schedule.Please you has a costumer never give 50% up front to any contractor that's unprofessional an Don my view only contractor that are not confident on the work they do will ask for that amount.

Thanks

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Stuart from CCR Renovations in Whitby
Date/Time11/2/2015 at 10:13:10 PM

Jeff,

It sucks that you have had such terrible luck with past contractors.

Be sure to always have a signed contract and get referrals. I always suggest getting more than one quote. Kitchen renovations tend to need a larger deposit up front for cabinets, and materials especially with custom orders and the deposits that are needed before starting custom orders.

Taking the time now to do research and your due diligence on possible contractors can save you from a lot of stress and money in the future.

Good luck with your Kitchen Renovation.

Cadence Construction Team

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Jeff in Thornhill
Date/Time11/2/2015 at 11:34:04 PM

Cadence Construction Team. Thanks for the advice. We did get one quote. Was happy with most of terms but had a few questions. It came back with deposit going from 15 percent to 35 percent. However most of this is going to the company making the cabinets as they require 50% up front

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Jeff in Thornhill
Date/Time11/7/2015 at 1:56:01 PM

Can I ask my contractor for 10% hold back at the end in amount I pay him? Also is 35% deposit excessive? Most of this is going to the company making the actual cabinets (they require 50% upfront).

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Date/Time11/10/2015 at 6:15:10 PM

Jeff,

Based on all the replies and your return replies shows that you have been scammed twice and that is why you feel it that way, now you don't trust nobody.

Most of the professionals here on this web site with good star rating have worked hard to get there and now they don't need advertisement, word of mouth is the way to go. Most of the time we have a telephonic conversation with client even before visiting site I decide whether I want this business or let it go. As a contractor I need peace of mind and 100 % trust on both the sides if that is not there both the parties have no fun doing business.

The whole experience should be stress free and enjoyable.

I collect 70% deposit for cabinets and counter tops up front and for renovations I collect only after the rough in is done and then after its all paid after we perform so trust has to be both ways.

Jeff if you are not comfortable with any one then better experience BIG boxes and you will know what a pain it is.

There is a LONG hold on phone to get some one to listen to your concern.

That's a all to gather a different experience.

Good luck, Jeff.

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Dewy in Mississauga
Date/Time1/2/2016 at 3:36:22 PM

I have gone with companies who want large $ up front. Sorry Contractors wont go this route again. Will pay as work is being done, or when product is delivered. Why is contracting different than any other business. The business takes the risk, not the consumer!

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