I got a quote for $8,000 to sand, prep, and paint my house exterior, which is pretty much in line with other estimates I've received. The contractor I liked best wants a 40% down payment, and I'm wondering if that's typical. Is this standard practice, and is it something I can negotiate?
3 Answers
In some places, regulations limit how much a contractor can require upfront. For instance, in California, a typical deposit can only be 10%. Overall, anything ranging from 10% to 50% is pretty standard across the U.S., but with your job being mostly labor, 40% feels excessive. You might want to negotiate down or at least ask for a lien release from the supplier at final payment.
Honestly, I think a down payment over 30% when most of the job is labor is a bit of a red flag. You want to make sure your contractor isn’t at risk of running off with your money. If you feel uncomfortable, don’t hesitate to look for another contractor. Many good ones won’t require that much upfront. When I got a quote for landscaping, I pushed back on a 50% deposit and ended up settling on $2,500, which felt more reasonable.
It's not uncommon for contractors to ask for a 50% deposit upfront, but 40% definitely feels steep, especially if labor makes up a big portion of the cost. Typically, a deposit should cover just the materials plus a little extra. If he's asking for more, it might indicate cash flow issues on his part. You could try negotiating, but be prepared; some contractors might pull back if they think you’re not serious about the job.