Hey everyone! I just found a contractor who's ready to re-stucco my house, but he wants a $2,500 deposit for the $10,000 project. I thought the rule in California was that deposits should be either $1,000 or 10%—whichever is less. Does this rule apply to stucco contractors as well? Is this asking for a large deposit a warning sign? Since I'm waiting to get my front and garage doors replaced (which is noted in the contract), would that change anything regarding the deposit?
3 Answers
If a contractor can't cover materials without a hefty deposit, I’d steer clear. I once had a contractor who didn’t ask for a deposit, and it ended up being a disaster, so there’s a trade-off. But if you feel nervous about it, just have an open chat with him about your concerns.
I totally get your concern. The price of $10k does seem reasonable, and if the payment on completion is standard, that might be okay too. Just make sure you check their references and previous work. Some contractors do ask for deposits to cover material costs, but it still feels off for a small job like yours to ask for that much up front. Do what feels right for you!
Yeah, the $1,000 or 10% rule applies to all licensed contractors in California. You should definitely check if they're licensed, bonded, and insured—look up their license number to be sure. Also, consider getting a few more quotes from different plasterers. It’s a bit shady if they’re asking for a higher deposit, and if they struggle with cash flow for a small job like this, it could be a red flag. Just my two cents though; larger projects usually come with payment schedules in the contract.