Vendor Payment Request

4 days ago

Hello – I have a flooring vendor asking for 100% payment prior to any work being done – is this standard for Idaho? This is for a small residential project.

Senior Legal Associate Levelset
173 reviews

It’s extremely uncommon for a contractor to be fully paid upfront. This can be a bad idea for a number of reasons – not the least of which is the risk that the contractor may take off with the funds without performing the work. Down payments can range quite a bit, and there may well be a good reason for a sizeable down payment. However, I’d suspect that anything over 40% as a down payment should draw a fair amount of scrutiny.

Regardless of the size of a down payment – it’s important that an owner gets an accounting on what the down payment is being used for. And, asking for receipts isn’t out of the question either. If the contractor is offended or refuses to explain what, exactly, the down payment is being used for – that might be a red flag.

Disclaimer: The information presented here is not legal advice and should not be construed as such. Rather, this content is provided for informational purposes. Do not act on this information as if it is advice. Further, this post does not create any attorney-client relationship. If you do need legal advice, seek the help of a local attorney.
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