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Updated over 8 years ago, 03/22/2016
My real 1st Rehab
Hello everyone! I'm finally getting started with my 1st real rehab project, and I met up with a kitchen cabinet restoration worker yesterday to give me estimates on how much it will cost to restore kitchen cabinets. So, anyways he sent me an estimate by email and it was $3800, but he wants a 50% downpayment of $1900, which I am uncomfortable with, as I feel it would encourage him to slack off; I've seen this happen to my other rehabber friends.
My question is...Do you think this is sketchy and risky to pay a 50% deposit? And also how do I let him know that I require that the contract include penalties for not completing the work on time ($100 dollar penalty a day of going over the agreed upon completion date)? Do you think this will scare him off? I also want a start date and completion date written in the contract. Do I just write it on a word document and send my requirements to him by email and ask him to sign the document?
I'm sorry if I ask so many questions. I'm just unsure of what to do. Any help and advice is greatly appreciated. Thanks!
@John Baker It's a negotiation just like any other. So figure out what would make you comfortable and make sure that makes its way into the contract. As far as the actual payments, make sure to make them in draws. This way you're paying the contractor in installments as the project meets certain milestones. And then you don't pay the final draw until the work is completely finished.
John Baker 50% is pretty standard for something like cabinet refinishing. No reason to be concerned about that unless the guy doesn't seem professional and running a proper business. If that's the case then you shouldn't be working with him anyway.
As for your other question, short answer is yes. Just tell him what you want everything in the contract. He probably won't agree to your $100/day but at least he will understand the urgency you're trying to create.
Hey 1st thing 1st
Kitchen - tell him that you will give 25% and another 25% when he's 50% done with the project it business nothing personal and keep giving him 25% until you reach that 100% and the job is done, i take it that you two never did business together this is why he's asking for that but remember he needs you, you don't need him because you can go somewhere else my advice would be until you and him can build a relationship together in your business pay accordingly !
Curtis!
Originally posted by @Zach Mitchell:
John Baker 50% is pretty standard for something like cabinet refinishing. No reason to be concerned about that unless the guy doesn't seem professional and running a proper business. If that's the case then you shouldn't be working with him anyway.
As for your other question, short answer is yes. Just tell him what you want everything in the contract. He probably won't agree to your $100/day but at least he will understand the urgency you're trying to create.
Ok, he did seem professional, and I found him on home advisor with about close to 5 out of stars out of 4 reviews. Thanks for the help.
By the way, I'm just wondering, what would you do in a situation like mine. Would you just pay him the 50% or would you rather pay him along the job when a certain percentage of the project is completed?
Originally posted by @Gerardo Dominguez:
@John Baker It's a negotiation just like any other. So figure out what would make you comfortable and make sure that makes its way into the contract. As far as the actual payments, make sure to make them in draws. This way you're paying the contractor in installments as the project meets certain milestones. And then you don't pay the final draw until the work is completely finished.
Ok, that was what I was thinking to keep him motivated and not to slack off. Thanks for your help!
Originally posted by @Curtis Sumpter:
Hey 1st thing 1st
Kitchen - tell him that you will give 25% and another 25% when he's 50% done with the project it business nothing personal and keep giving him 25% until you reach that 100% and the job is done, i take it that you two never did business together this is why he's asking for that but remember he needs you, you don't need him because you can go somewhere else my advice would be until you and him can build a relationship together in your business pay accordingly !
Curtis!
Ok, thanks! Will definitley try this.
John Baker I beat these guys up on price so much that by the time we are at a final number I don't mind paying the 50%. Think the last refinishing we did was the same way. He was also like 40% less than another bid. Some people want money up front, others don't ask for anything until the job is done. I really just base it all on my relationship with the person but if it's our first time working together I just feel them out and go from there. There's no science to it, just do what you're comfortable with and make sure to learn along the way.
Yeah, originally he gave me an estimate around $4700-5000, but then after much talk I got him down to $3800. I will see how this turns out, and go from there. Thanks for the help! I really appreciate it.
In our area, 50% is typical. The company I work with asks for 50% of all contracts up front. We do all Interior finish materials. If you can get him to sign a penalty clause into your contract - Go for It. all you can do is ask. I'm thinking of trying this with some of my subs. Good Luck and Learn Lots