I am getting estimates to replace a section of fascia, aluminum wrap and new gutters. No special order materials and no materials pre-delivered. One company has a very detailed quote and was fast to respond, but wants 50% down to schedule the job. The others want payment in full upon completion of the job. To me 50 % down raises a red flag. What do you think ? Would appreciate any input.

 

I don't think a deposit raises any red flags but you should be researching their reputation in the community anyway. Asking for final payment before you have signed off on the job being finished to your satisfaction would be a red flag.

 

While I dislike paying 50% to schedule the job, I understand why companies do it.

You can always negotiate and ask if you can pay in cash the day the project is complete. Or 50% on the day they start if it's a multi-day project. Some will understand your concern about paying upfront - others have been burned in the past and won't negotiate that. Doesn't hurt to ask.

 

If someone doesn't give me at least a partial downpayment... usually 25% on a big job or 50% on a small job, then I assume they aren't serious, and don't belong on my schedule. It also indicates to me that I won't have a problem getting the rest upon completion. Your job would be what I'd call a small job.

 

CA has a 10% max or $1K whichever is less for a down payment.

Not to hijack this thread but it sorta goes along with the theme. Often I've thought of having in a contract a holdback of say 10% at conclusion of the job for say 1 week so I can do my due diligence on inspecting a job. Usually the contractor will require payment upon completion, i.e when they gather up their tools and leave be it a large or small job. A couple of times I've found issues that I needed them to come out and fix after they've left. I;ve never had an issue, but I've heard/read bad stories from others that it has been difficult/impossible to get the contractor back out after they've been paid. Would this be considered bad form, insulting or ??? Not sure of the profit margin for contractors, but if they've received 90% of the contract price I've got to imagine at least they are not out money. I'm more concerned on large $ jobs.

 

In my case, "upon completion" means within 30 days of completion. Says so on my contracts. I don't expect to be handed a check the instant I'm done, but if they want to save a stamp, I'm not going to argue. Anyone who demands payment is probably a shady fly by night guy or maybe is cashing his check at the liquor store on the way home. Or is just leary that you're going to stiff him.

I can't see that waiting for a bill to come in the mail with the "balance due" is bad form. Tell them the check is in the mail.

 

Maybe that's a better way of doing it. Make sure the contract says within 30 days of completion that way there's no implication of me "concerned about the work". The one that sticks in my mind was a 25K landscape job that had progress payments through the process (I think 3). At the end of the day when a step was completed he would ask for the check, no biggie. Then the day he said he was finished he asked for the final check. He wound up having to come back in a couple of weeks to fix some things. He was a great contractor and did a good job. I've just heard of some bad experiences.

 

My roofing guy told me the deposit was because once they deliver the materials, ownership and responsibility for its security gets fuzzy.