Pay money up front for work?
Question: I think I know the answer to this but would like to see what other >>think. I have a construction company doing some insurance work for >>me. I also asked him to give me a estimate for a new garage door >>(non-insurance). He quoted me a price and later sent out a contract. >>In the contract it said that I should sign and return the contract >>with the money. Is this standard practice? I can’t imagine paying >>all of the money first. Especially sine the contract was vague. It >>simply stated new garage door and the price. I have a garage door >>opener that he said they would re-install. I am going to offer him >>half the money now and half when the work is done to my satisfaction. >>What do you think?
Under no circumstances pay the contractor up front, make sure you have everything you want done written in the contract with the complete price, then only pay them 25% in advance. Especially with insurance compnaies contractors, been there, and got suckered, but learned my lesson.
Answer: Been there myself. I wouldn’t even pay 25% upfront. The contractor will probably get 60 days credit from his suppliers and probably pays his workers bi-weekly so he shouldn’t need the money upfront (if he does it means he probably has bad credit). He has your state’s mechanic lien laws to protect him (ie, if you don’t pay he can lien your property). So there should be no reason for an advance.
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