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Posted by Robert Allison on July 8, 2007, 2:08 am
RicodJour wrote:
>
>>
>>
>>>>Must be normal where kjpro is from, as he finds deposits a vital part of
>>>>business. Deposits are only usual and customary for custom work and
>>>>special order goods.
>>
>>>I agree completely, I wouldn't hesitate to put up, essentially,
>>>earnest money for something like that. I'm strictly talking about
>>>standard construction materials.
>>
>>
>>It's comforting to know there's other rational logical people in here.
>>Thanks.
>
>
> You mean as opposed to people that say one thing in one post and
> contradict themselves in another? I'm with you on that one.
>
> Let's see what the people that write the rules have to say on the
> matter. We already looked at your home state of Nevada. Let's pick a
> few biggies.
>
> California information for homeowners
> http://www.cslb.ca.gov/forms/hicnotice.pdf says this:
> Are you required to pay a down payment?
> If you are, the down payment should never be more than 10% of the
> contract price or
> $1,000, whichever is less.
> Is there a schedule of payments?
> If there is a schedule of payments, you should pay only as work is
> completed and not
> before. There are some exceptions - contact the CSLB to find out what
> they are.
>
> That makes sense.
>
> Nassau County New York information for homeowners (1.3 million
> residents)
> http://www.nassaucountyny.gov/agencies/OCA/Licensing/checklist.html
> says this:
> Is the Payment Schedule Fair? Avoid a firm that wants a large down
> payment. A fair down payment would be under 15%. Make payments as each
> phase of the work is completed. Hold back final payment until all
> problems have been corrected. Make sure the contract specifies a
> payment schedule.
>
> That makes sense.
>
> Massachusetts Sample Home Improvement Contract
> http://www.mass.gov/Eoca/docs/sampcont.pdf says this:
> Payments will be made according to the following SCHEDULE:
> $________ upon signing contract (*Not to exceed 1/3 of the total
> contract price OR the cost of
> special order items, whichever is greater*).
> $________ by __/__/____ or upon completion of
>
> That makes sense, but personally, I think 1/3 of the total contract is
> pretty steep for a down payment.
>
> Maybe you don't like government, even when they're trying to protect a
> homeowner. Fine. Let's see what the household names in home
> improvement have to say.
>
> Bob Vila
>
http://www.bobvila.com/HowTo_Library/Finding_the_Right_Contractor-Hiring_a_Pro-A1660.html
> says this:
> · Try to limit your down payment. Some state laws limit the amount of
> money a contractor can request as a down payment. Contact your state
> or local consumer agency to find out what the law is in your area.
>
> That makes sense.
>
> Holmes on Homes
> http://www.holmesonhomes.com/tips_and_tricks_details.php?id=29 says
> this:
> One of the biggest complaints I hear from home owners who've been
> taken by their contractor is that they paid too much money upfront.
> Most contracts that home owners sign are based on time. THIS IS
> TOTALLY INCORRECT. You need to demand a contract and payment plan
> based on milestones, not set time periods. A good payment plan starts
> with the down payment. This should be no more than 15% up to $2,500
> maximum. Never pay a contractor more than $2,500 before they've even
> stepped foot in your house.
>
> That makes sense.
>
> The only thing that doesn't make sense is your flip flopping and
> spouting off about NEVER PAY FOR WORK UP FRONT.
>
> R
>
In addition to the cites posted above, Home Depot and Lowes
both require FULL payment IN ADVANCE of any work done. And we
all know how disreputable and in need of cash they are.
(Actually, they ARE disreputable.)
--
Robert Allison
Rimshot, Inc.
Georgetown, TX
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