Contractors: If I Buy Materials, Do You Still Need a Downpayment?

[Mindy Jensen]

I've seen so many forum posts advising NOT to give any money to contractors upfront - because so many people have been ripped off by contractors. 

I've seen many responses from contractors, saying they've got to buy materials, pay their workers, etc and if they don't know you, you should expect to pay a deposit.

I can see both sides of the problem.

Contractors, if I foot the bill for the materials, your risk is lessened.

How can I propose a fair solution to my contractors? I will happily foot the bill for supplies so they aren't out any money out of pocket, but with the prevalence of contractor-stole-my-money stories, it makes it hard to fork over an upfront fee.