I'm diving into a complete kitchen remodel and have decided to take on the task without hiring a general contractor. I've got some questions about working with subcontractors: Is it typical for them to require a percentage of payment upfront? How do I structure the payments—should I pay them in stages or settle everything once they complete their work?
3 Answers
In my experience, the best practice is to send an invoice along with the contract once you accept a quote. For me, a deposit of around 25-30% makes sense since materials are only a part of the project. Each company has different practices, so don't hesitate to ask about their specific terms and why they need upfront payments.
Payment norms vary a lot! If you're your own GC, you'll need to consider each subcontractor's terms separately. Generally, smaller jobs might require half upfront, while for bigger projects, a third is more standard. Just remember, without an existing relationship, you might have to accept their terms.
It's pretty common for subcontractors to want a percentage upfront, especially if you're handling the project directly. They may not have the same level of trust with you since you're not a seasoned GC, so be prepared to go along with their payment terms. Look for subs that allow payment based on project milestones, which can be a good way to manage quality and expectations.