All Forum Posts by: Mark Bishop

Set up progress billing. A reputable and established contractor should have

1) credit with suppliers to order materials

2) the ability to go a couple of weeks without NEEDING money

3) a reputation that they value, and not risk losing over running off with a deposit.

As a NJ based contractor(Cabinets and Trim only) I may ask for a small deposit if I haven't worked with you in the past, and I don't have references for you that I trust. 

If I have one of those, I usually invoice after we complete the project and get paid on a 30 day net. If its more than a week or 2 project, I will probably set up some kind of progress billing. I hit a progress goal, I get a check.

My best advise is to hire 1 of 2 ways

1) a GC that subs the work to specialized contractors and over sees the project/payment of the subs They usually have good relationships with guys that can handle the terms I mentioned above and trust to complete the work

2) Hire the specialized subs yourself. The "We do it all" guys are the worst in speed, quality, price, & reputation.

ALWAYS get a copy of the VALID business License, and than verify with consumer affairs. And get listed as NAMED INSURED on both the GL insurance Policy as well as Workers Comp. The agent will issue you a cert with you named, and you will be notified if they default or cancel the policy. And issue them a 1099 which verifies their EIN# as well as relieves you from paying tax on the $ you pay them.

 And if they run with your deposit you will have all the info you need to file complaints etc.