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Is there a limit for up front payments to contractors in Texas similar to California's 10% or $1000?

Texas

We are asking for 50% funds to begin a client's project. They recently moved to Texas from California and believe that we are breaking the law.

8 replies

Jun 8, 2020
Hi, In Texas, there is no cap on the amount that can be requested up front for a project. You are not breaking a law here by requesting half up front. E. Aaron Cartwright III 214-789-1354 Aaron@EACLawyer.com
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Jun 8, 2020
Hello, It depends on what type of work you are doing. If you are an out of state contractor repairing damage from a major storm you can’t request a deposit at all, but if it’s not that type of work, you can require whatever deposit you want. Thanks, Karalynn Cromeens Managing Partner 8431 Katy Freeway Houston, TX 77024 Tel: (713) 715-7334 www.TheCromeensLawFirm.com Privileged Attorney-Client Communication and/or Attorney Work Product: The above message and attachments, if any, are confidential and may be protected by the attorney/client privilege and/or attorney work product. The unauthorized disclosure, use, dissemination or copying of this e-mail, or any information it contains, by anyone other than the intended recipient, is prohibited. If you are not the named recipient, or have otherwise received this communication in error, delete it immediately and notify the sender at the office number listed above or by return email.
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Aug 17, 2021
I'm a remodeling contractor in texas. I'm doing a exterior stucco project for a home owner who has complained about some of the work preformed by my sub contractors. We have remedy all her complaints as best as possible. She gave a cash 50% upfront and we have completed 3/4 of the work along with a few extras . She is demanding 1/2 of her initial down payment back all while hiring another contractor to finish the project. Legally do I have to give in to her request? I've never had a issue sush as this..Any help greatly appreciated!
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Oct 10, 2021
Call your attorney.
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Nov 9, 2021
How are we (customers) protected if we pay 50% up front and then he starts doing a crappy job, or not doing what we agreed on. And he decides to walk away with 50% of our money and 5-10% work done?
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Nov 15, 2021
Is there a way to set up a neutral $ account for the project so it protects both parties? Seems like that would be a good idea.
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Mar 21, 2022
That is because it is against the law in California
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Mar 27, 2022
It goes both ways... How are we protected by dishonest customers who want us to do their work and then try to get free work done by making up silly excuses to not pay us .. so it's a trust factor on both sides... I usually ask for 40% upfront and 95% of the time, the customer is ok with that...
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