Is it normal for a contractor to require 50% payment prior to doing any work or providing any materials?
Question:I paid a contractor $1000.00 to fix my mom’s roof and he disappeared with a number of other people’s deposits. What protection do I have if I pay a deposit before any work is done and the contractor decides to not do the job and keep my deposit? (Usually attorney fees are nuch greater than the deposit so this is not a logical way to persue this problem). Are there any enforcible laws to protect consumers against this kind of problem?
Answers:
Many contractors will require a deposit for materials. My thinking is, that if they don't have good credit with the supply house, they probably are not very good. I never give money up front.
Pet peeve: Reading through Answers, I always see the question "How can I do this CHEAP? This is what gets money stolen. If the price is way lower than everyone elses bids, it is probably a rip-off.
Yes. It's perfectly normal.
Certainly, you can sue him in small claims court for non-performance.
It is normal for a contractor to collect a portion up front to pay for materials. Always, always, always, before handing over your hard earned cash, get the contractors license number and check it through the contractor licensing board, the BBB, and get references from the contractor.
Contractor scams are rampant (and everybody thinks car salesman are dishonest) You must do your homework.
This happens a lot. I'm sorry!
Small claims court. No attorney needed. If you can find him!
Unfortunately, it many cases its buyer beware and if you are successful in finding the contractor and winning a judgement in court, you still may be out the $1000.00. You need to do investigating before hiring any contractor. Some of the things to look for: #1. Is he/she licensed by the state. If so then you can check with the licensing agency in that state to see if there are any complaints of poor, shoddy work, ect. #2 Word of mouth- what work has this person done before, does he have verifiable references? Ask to see his previous projects and contacts. Lastly, check with the Better Business Bureau in your state/city to see if there are any complaints against the contractor.
Some times a contractor asks for money up front for supplies. If that is the case, one option is to prepurchase the supplies needed for the job. That way you can ensure the money is spent on the materials and the contractor isn't "robbing peter to pay paul".
Finally, my last recommendation would be to look for reputable companies that have been in business for a length of time, especially for a roofing job, say in 5 years you start to have problems, what type of warranty will you have?
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