I'm looking to renovate my home by redoing the front porch and refinishing the attic, which includes adding skylights, windows, and doors. I've been gathering quotes, and they range wildly—from $50k to $140k for the whole project. Some larger companies seem overpriced, but I'm interested in a couple of smaller contractors who have solid references and recommendations from people I trust. Here's my dilemma: I'm worried about paying them a large upfront deposit of 40-50% (around $40-50k), and I want to know how I can protect myself in case things go wrong. I don't want to dismiss smaller companies just because of their size. What advice do you have for making sure I'm safeguarded during this process?
3 Answers
50% upfront isn't out of the ordinary, especially since contractors might need to buy a lot of materials upfront and are factoring in potential future costs. Hiring contractors involves doing your homework and accepting some risk—similar to finding a new mechanic! Just remember to keep a paper trail; this way, you can back up any claims if needed. I personally still pay contractors by check for added security.
As a contractor myself, I can say that a good recommendation from people you know is huge. Just ensure you have a solid contract in place that clearly lays out payment terms and how a retainer is utilized. It’s a big investment, so get everything in writing. Also, 50% upfront seems steep—most of my jobs only require about 15% upfront for fixed prices. We prefer milestone payments based on completed work, which keeps things transparent for the homeowner. Good luck with your project!
That’s a sizable down payment! For context, I had my upstairs remodeled and paid only 10% upfront, with weekly invoices based on completed work. Make sure to closely review their contract; it should clarify how your payments are structured and what protection you have. If you're uncertain, ask them directly about the details.
Excellent advice! I’ll definitely consider setting up a retainer and making sure there’s plenty of documentation.