I'm a new homeowner who found out the hard way that getting a simple concrete patio installed isn't so simple after all. I planned to have a patio built and set up a pre-fab aluminum pergola from Costco on top of it. Unfortunately, I've run into a major issue with my County's permitting office, which has been notoriously difficult to navigate. After realizing that the cost to have architect drawings signed and sealed would surpass the price of the pergola itself, I've decided to cancel the project altogether.
Here's the situation: I had hired a contractor for this job and given them a $500 deposit. The contractor hasn't purchased any materials yet, as they normally work with a pre-mix concrete company. They mentioned that they have enough work lined up, so my cancellation wouldn't hurt their business.
Given these circumstances, I'm wondering what the norm is here. Should the contractor refund my deposit since no work has begun and no materials were purchased? Is it fair to expect a refund, especially since this situation is beyond my control and I might want to work with them in the future?
3 Answers
In my experience, deposits are usually non-refundable, especially if the contractor had to block out time for your project. However, if it's a situation where no materials have been purchased and work hasn’t started, I think it's reasonable to ask for a refund. Just acknowledge that they also have a business to run.
Honestly, if you’re hiring someone, they should be handling the permits. If it's been a hassle for you, that’s unfortunate, but they might look at it differently. If the contract says non-refundable, it might be tough luck. But talking to them about your situation could help, especially since you didn’t realize how challenging the permitting process could be.
That’s true, the contractor should ideally guide you on those things before any agreements.
It really depends on what your contract states. If your contract specifies that the deposit is non-refundable, then you might be out of luck. But since the contractor hasn't actually started the job or bought materials, it could be worth discussing the situation with them. Sometimes, they might be willing to refund the deposit if they haven't incurred any costs. Just be prepared for them to say no, though.
Yeah, I completely overlooked that part in the contract. Still hoping for some understanding from the contractor.

I hear you. It’s tough to lose that money, especially when I could really use it for other expenses right now.