Payment Schedule
I recently received a quote from an electrical contractor for some work upgrading the electric in my brownstone. It’s for $15,000 which is fine for the work involved but his payment schedule seemed a little strange: 1st payment 5k, 2nd 4k on 1/3 of work, 3rd 4k on 2/3 of work and final 2k on…
I recently received a quote from an electrical contractor for some work upgrading the electric in my brownstone. It’s for $15,000 which is fine for the work involved but his payment schedule seemed a little strange: 1st payment 5k, 2nd 4k on 1/3 of work, 3rd 4k on 2/3 of work and final 2k on completion. Does this seem OK?
I wouldn’t agree to those terms. I have had the worse experiences with contractors period but one thing I have learned, never give them a large down payment.Sometimes they take it and run or take forever to complete the job. Too bad you didnt say what was for materials vs labor. I usually get quotes for jobs based on that…then pay for materials but the labor comes at the end of the job. They usually finish ahead of time because payment is their incentive to do so..Sometimes you give them large deposits and they dont use it all on materials, they take other jobs in between ,finish jobs they previously started cause they have your deposit to tide them over. I dont know what the job entails but if you can, try to give deposit to cover materials only.
I wouldn’t agree to those terms. I have had the worse experiences with contractors period but one thing I have learned, never give them a large down payment.Sometimes they take it and run or take forever to complete the job. Too bad you didnt say what was for materials vs labor. I usually get quotes for jobs based on that…then pay for materials but the labor comes at the end of the job. They usually finish ahead of time because payment is their incentive to do so..Sometimes you give them large deposits and they dont use it all on materials, they take other jobs in between ,finish jobs they previously started cause they have your deposit to tide them over. I dont know what the job entails but if you can, try to give deposit to cover materials only.
10%-25% is a standard first payment. never get too far ahead of his work though.
what does this work entail? is it a full house rewiring?
I would never do that. I might pay a small deposit of less than 10%. But where is the gaurntee that this guy wont walk of the job with you money. Have you made sure that this guy is licensed? Remember that you should make sure the terms of payment suit you and not the contractor. In the end you have the most to loose. Good Luck