Contracting out


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Old 06-19-06, 06:17 AM
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Contracting out

We are contracting out our kitchen remodel- I just do not have the time nor the expertise... We had about 10 contractors come in and one guy we really like and his work seems good. He has met with us twice for over 2 hours each time and we cannot get a complete price and contract until we pick cabinets and counters (Understood)- He approached us with a "binder contract" which sounds to me like we give him deposit of small amount and he continues to work with us through the next stages of the project- If we sign the contract with him- That money gets absorbed into the final price- It makes sense to me in that he has something to show for his investment in us- Is this a normal procedure?
 
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Old 06-19-06, 06:55 AM
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I've been a contractor in the Chicago area for over sixteen years. A "binder" contract is probably an indication that the contractor you are dealing with has got bills to pay now. That can sometimes be a problem down the road because he uses your initial deposit to pay costs from a previous job. Then at the end of your own job, he's already spent the resources needed to cover the new expenses incurred on your behalf. I've always tried to initiate contract deposits and start dates on the same day. I would suggest that you be careful giving a deposit, since the lead time for cabinets is usually two to four weeks after ordering.
If the contractor you've selected is stable he will have no problem waiting for the start date to receive the initial deposit.
 
 

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