How much money down does a remodeler / contractor typically ask for to start a job?
There are many different scenarios that determine a payment schedule in the remodeling industry. Receiving some sort of down payment at signing is a good business practice to ensure a customer’s sincere intent to do the project. A payment schedule should be part of the contract language. Typical down payments range from 10% to 33% or sometimes even higher depending on the type of work being done. A down payment is highly recommended throughout our industry when products have to be ordered by the contractor immediately. Doors, windows, cabinets and specialty items are usually ordered well before the construction starts. Dividing a project into 3 to 6 payments allows the contractor to keep abreast of the project’s labor and material costs. Payments are most likely tied to a production schedule with predefined milestones.