I'm redoing my home theater and bedroom with a contractor, and I'm really concerned about their payment terms. I've made it clear what my budget is and I'm willing to eliminate some features to stay within it. However, the contractor provided an estimate that is 200% of my budget and insists that I pay the entire amount upfront before any work starts. They also mentioned that after the crew arrives, they'll provide an accurate estimate for us to decide whether to proceed or not. I'm feeling uneasy about this and would like to know if it's common practice to pay the entire budget upfront or if I'm right to be wary.
2 Answers
OMG, 100% payment upfront? That's just asking for trouble! You should definitely get quotes from other contractors. A good plan is usually putting down maybe 20% at most.
No way, that's not normal at all! Requiring full payment upfront is a giant red flag. I highly recommend looking for a different contractor who has a better payment plan.
In California, it's actually illegal to ask for more than $1000 or 10% upfront. You should look into the payment regulations in your state.