Never Give Your Contractor a Large Down Payment for the Construction Project
897 views · Published 13 February 2010 · 1:53 · Indexed 8 October 2026
Channel: gregvancom · 2010 · Howto & Style
http://www.homebuildingandrepairs.com/books/index.html In the state California where I'm a licensed general building contractor, we're not allowed to receive more than 10% or $1000 of the over all cost of the construction project. Let me give you an example of what I'm talking about, you're planning on remodeling your bathroom and the contractor gives you a bid for $7,500. 10% of $7500 is $750 and $750 is the maximum that your contractor is allowed to receive for a down payment. If a construction project is going to cost more than $10,000, the maximum down payment allowed, will be $1000. Your state might have different rules and regulations for their contractors, but the reality is simple, if you don't feel comfortable giving your contractor at a large down payment or any down payment, make your concerns known to your contractor and see if you can work something out. It never hurts to ask good questions.
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