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Updated almost 2 years ago on . Most recent reply

User Stats

258
Posts
66
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Wendy S.
  • Ellenwood, GA
66
Votes |
258
Posts

Paying contractor deposit on Labor

Wendy S.
  • Ellenwood, GA
Posted

Good day, I know this topic has been discussed numerous times so I may be venting or just tired that contractors believe they should get significant deposits on labor.

For projects under $50,000, with the owner paying for the materials sourced by the contractor, how much is a reasonable deposit on labor for the job to get started?

Contractors have more leverage as they can put a lien against your property for valid work done. So it's a no brainer for the owner to pay them.

What do owners have? The potential of a pyrrhic victory?

Looking at a job for $28,000.

Contractor wants $8,000 deposit for labor.

Another for $38,000 labor only

Labor request deposit $15,000???

  • Wendy S.
  • Most Popular Reply

    User Stats

    1,240
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    Terrell Garren
    • Rental Property Investor
    • Concord, NC
    3,064
    Votes |
    1,240
    Posts
    Terrell Garren
    • Rental Property Investor
    • Concord, NC
    Replied

    I've been paying contractors for decades. Never made a deposit on labor. 

    Good contractors are not cheap. Cheap contractors are not good. 

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