House Logic
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- He’s not going to do the majority of the work: General contractors often times don’t do the physical labor themselves. Normally their main role is to gain clients, manage the budget, and schedule subcontractors. Be sure to ask who will be in charge of the job site and go and meet them on the job if possible to see who you will be dealing with.
- A large deposit is not necessary: If a business is financially sound and the contractor has good relationships with his suppliers, he shouldn’t be required to pay anything up front. A small deposit should be fine to start a job and your payment plan should be based around a specified amount of work being done. With this arrangement, if the work is not going according to schedule, then the payments will be delayed. The Federal Trade Commission suggests using a credit card to pay for home improvement work so that a homeowner is protected if the project falls through.
- Both labor AND materials will be marked up: If you are able to buy your own items such as cabinets, countertops, etc. have the contractor take those items out of the bid price. Make sure to agree on specific numbers of items to purchase and ensure they are on the job site when needed. Purchasing some items on your own could save you 10%-20% off the entire project cost.