The last contractor I talked to asked for 50% down payment before he even started the project? Is this normal? What is the norm in payment schedules for construction projects? The answers to these questions depends on the size of the project and the type of solicitation. Let me try to explain.
If you hire to contractor for a small project such as kitchen backsplash tiling that will last for 1 to 2 days, you should pay 50% upfront and 50% upon completion of the work described on the signed contract. On the other hand, if your project is larger, such as bathroom or kitchen remodeling, you should break up your payments to 3 different parts such as demolition, preparation and installation.
Your payment options also differ based on the solicitation used to sell services. If the contractor left a brochure in your mailbox or your door, you should not pay more than 30% upfront. This is a State of Virginia recommendation and it also requires that contractors provide consumers with a copy of Statement of Consumer Protection from Department of Professional and Occupational Regulation. You can find a copy of the document at http://www.chesterfield.gov/communitydevelopment/buildinginspection/residential/TechGuides/hiringcontractor.pdf
Regardless of any suggestions, payment schedules should be based on the needs of the individual project. One thing is certain, you must have a clear understanding between your contractor and yourself about your payment expectations. Most importantly, the schedule should be in writing in your contract. Check your contractors references, check on his license status and have a clear contract. Enjoy your project.
Murat Aksu
A1A Team
www.a1ateam.com
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