Aggreement with a contractor?
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As most of you know all contractor's ask you for 1/2 of the money up front and SOME of them run off with your money. I have an independant contractor working on my kitchen and we will be signing a contract tomorrow. I used to work for law firms and want to cover my butt, so I would like to write up a document for him to sign showing that I did pay him the 1st 1/2 of the money to make sure he doesn't take it and run. Is there a formal document I can use and if not then can you give me a good example I can use? Something Like I (name here) have given (contractor name here) $500 which is 1/2 of full amount to start and finish my kitchen renovation, start work on (this date) and finish withing 5-7 days, per our agreement. Then we both date and sign. Please give me any opinions you have. My husband and I are 1st time homebuyers and have never had any work done before so we just want to make sure we don't get ripped off
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Answer:
i will not sign a contract of one half up front i go one third up front one third half way one third at end the money up front is supposed to be for materials and no way materials are one half the job
Kris at Yahoo! Answers Visit the source
Other answers
in calif it is against the law to ask for more than 10% or $1000 which ever is more up front now this is YOUR HOME SO YOU ARE THE BOSS WRITE WHAT YOU WANT and if they say no you say GOOD BYE have fun with your kitch good luck
make sure you get all permits and inspection because if something goes wrong who are you going to complain to ? a small deposit at the beginning is normal , usually half of the money is given after the beginning (rough ) stage of a job is inspected and complete. and the final payment is usually made after final inspections or (finish ) stage of the job , never pay in full until all final inspections are done ( plumbing , electric , building etc . )
wicket351
There's a limit to how much a Contractor can ask for up-front that varies with different states. Check with the licensing board in your state. Also you might want to look into getting a completion bond, or a bond to cover workmanship. Your local printer shop/office supply should have copies of standard contracts for your state which should cover everything you need. All the best.
PropReno
Here it is 10% up front..you don't need a special paper drawn up for your money paid..it is called a receipt..get one when money is paid, and pay by cheque so you can have an extra receipt of your own..have a receipt book handy in case he states he does not have one handy. Glad to see you are trying to cover your bases here..I hope this person is licensed and bondable..ask for it...and yes..have him sign a paper stating total cost of the job.
pissy_old_lady
First answer is correct. 1/3 at start. 1/3 half way and 1/3 when completed. I always include a completion date with penalties starting 5 days from when contractor claims he will be finished. I have never had a contractor run off or not complete a job to my satisfaction.
Ariaread
give the guy 1/3 up front - you may want to put in liquidated damages to be paid if the job runs pass the 7 day finish - if your kitchen is not done you may have to eat out and you should not have to pay him and pay to eat out also
Big Daddy
Pickmefi is right, only go 1/3 to start or you will find someone else, but the paper you are talking about is called a Draft and maybe your bank can draw one up for you, basically it is a check with conditions upon it, once the person endorses it, the they are agreeing with the condition of what to money is for and what they will owe if the agreement is not met, always add a late fee for the job and how much interest will be added if they do not meet the dead line, you really need a lawyer to do the draft or a para legal also get a bond number too, this is insurance the contractor carries and also include that he will not be using sub contractors, because if they do keep you money and not pay the sub contractors, they could hit you for their losses including putting a lien on your house.
mr.obvious
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