RicodJour wrote:

On Jul 7, 8:32 pm, "SteveB" wrote:

"Nancy Young" wrote in message

"SteveB" wrote

Must be normal where kjpro is from, as he finds deposits a vital part of
business. Deposits are only usual and customary for custom work and
special order goods.

I agree completely, I wouldn't hesitate to put up, essentially,
earnest money for something like that. I'm strictly talking about
standard construction materials.


It's comforting to know there's other rational logical people in here.
Thanks.


You mean as opposed to people that say one thing in one post and
contradict themselves in another? I'm with you on that one.

Let's see what the people that write the rules have to say on the
matter. We already looked at your home state of Nevada. Let's pick a
few biggies.

California information for homeowners
http://www.cslb.ca.gov/forms/hicnotice.pdf says this:
Are you required to pay a down payment?
If you are, the down payment should never be more than 10% of the
contract price or
$1,000, whichever is less.
Is there a schedule of payments?
If there is a schedule of payments, you should pay only as work is
completed and not
before. There are some exceptions - contact the CSLB to find out what
they are.

That makes sense.

Nassau County New York information for homeowners (1.3 million
residents)
http://www.nassaucountyny.gov/agenci...checklist.html
says this:
Is the Payment Schedule Fair? Avoid a firm that wants a large down
payment. A fair down payment would be under 15%. Make payments as each
phase of the work is completed. Hold back final payment until all
problems have been corrected. Make sure the contract specifies a
payment schedule.

That makes sense.

Massachusetts Sample Home Improvement Contract
http://www.mass.gov/Eoca/docs/sampcont.pdf says this:
Payments will be made according to the following SCHEDULE:
$________ upon signing contract (*Not to exceed 1/3 of the total
contract price OR the cost of
special order items, whichever is greater*).
$________ by __/__/____ or upon completion of

That makes sense, but personally, I think 1/3 of the total contract is
pretty steep for a down payment.

Maybe you don't like government, even when they're trying to protect a
homeowner. Fine. Let's see what the household names in home
improvement have to say.

Bob Vila
http://www.bobvila.com/HowTo_Library...Pro-A1660.html
says this:
· Try to limit your down payment. Some state laws limit the amount of
money a contractor can request as a down payment. Contact your state
or local consumer agency to find out what the law is in your area.

That makes sense.

Holmes on Homes
http://www.holmesonhomes.com/tips_an...ails.php?id=29 says
this:
One of the biggest complaints I hear from home owners who've been
taken by their contractor is that they paid too much money upfront.
Most contracts that home owners sign are based on time. THIS IS
TOTALLY INCORRECT. You need to demand a contract and payment plan
based on milestones, not set time periods. A good payment plan starts
with the down payment. This should be no more than 15% up to $2,500
maximum. Never pay a contractor more than $2,500 before they've even
stepped foot in your house.

That makes sense.

The only thing that doesn't make sense is your flip flopping and
spouting off about NEVER PAY FOR WORK UP FRONT.

R


In addition to the cites posted above, Home Depot and Lowes
both require FULL payment IN ADVANCE of any work done. And we
all know how disreputable and in need of cash they are.
(Actually, they ARE disreputable.)

--
Robert Allison
Rimshot, Inc.
Georgetown, TX