Contractor Deposit

Contractors who want a deposit up front.  The answer is No.  

Why?

A Little Shady

Contractors who want money upfront 1) either can't manage their money, 2) don't have enough work going on, 3) you could be their only job and they don't want to put up their own money for materials upfront.  All of these possible answers are not your problem.  It's theirs.

Once you give a Contractor, we are also referring to Subcontractors, money before they start the job or a portion of their job, then they are running the job.  Not you. 

The above animation is quite common.  And ladies, if a Contractor likes to tell you how pretty you are or is complementing you a little too much, stay away.  I'm serious.  They are trying to get the job.  

When you think you've found a good Contractor/Subcontractor for your job, ask for references.  These references include other people they've built for, other trades they've worked with and ask for a few of their suppliers.  Why suppliers?  You want to see if the Contractcor/Subcontractor pay them on time.

Pay Schedules

Your Contractor/Subcontractor and you should agree to a pay schedule.  Sure, you can ask your Contractor/Subcontractor what they usually do.  But you are hiring them, they are not hiring you.  If you need examples of pay schedules, we have them for you in our Builder Basics book.  We have worked for the majority of the national home builders and they pretty much all use the same Pay Schedule for their Subcontractors.  What is a pay schedule?  It's also called a Draw Schedule.  

For an example.  The Plumber.  Your Pay Schedule would be a percentage for completing the water and sewer from the street to the house.  A percentage would be completing the rough plumbing.  A percentage would be completing the plumbing finish.  So an average of 3 Draws for a Pay Schedule or a Draw Schedule.  This is agreed upon by both you and the Contractor/Subcontractor.  If you are working with a Contractor, then you need to agree to every trade.  Some owner builders hire a Contractor for the framing through drywall and then hire the other trades on their own.  There is still saving doing this.

Be Careful

Find good Contractors and Subcontractors takes time and is a HUGE portion of the job - they can make or break your job.  Make sure you find ones you communicate well with.  It doesn't matter if your neighbor down the street had a good experience with one and recommends them to you.  Add this company to your list and you do your own homework on them.  If it doesn't feel right, then it isn't right.

Owner Builders Who Are Looking for Specific Information

There is a GREAT series of reference books by Greg Berge who is been a General Contractor for over 25 years.  He has the following downloadable books:   

• Guide for Hiring Contractors
• 501 Contractor Tips
• Simplified Stair Building
• Simplified Stair Building with Landings
• Advanced Stair Stinger Layout Methods
• Simple Stair Stringer Layout
• Simplified Bracket Stair Building
• Simplified Tile Floor Installation
• Simplified House Inspection Checklist (note to you Owner Builders - your City Inspector is not handing you an Inspection Checklist)
• Simplified Home Inspections  

Get access to these downloadable books here