As a homeowner in DE we are looking to hire a contractor for our hardscape project. What is the state's typical deposit percentage?
1 reply
Apr 21, 2020
Determining an appropriate down payment for your job can be tough, and it may well depend on the type of work being done, industry standards in your area, and the type of contract being entered into. With that being said, when construction contracts exceed the 25-35% mark, it's completely natural to start raising eyebrows.
What's more, it's extremely important to have your contractor lay out what that down payment will be used for - and, preferably, to have that written into the contract itself. If the contractor requires a down payment, they should be comfortable explaining how it will be used. And, if a contractor requests a large down payment but refuses to explain how it will be used - that might be a red flag.
Finally, keep in mind that vetting your contractor is crucial, too: Prequalification: How to Avoid Bad Contractors, Subs, and Suppliers Before They Become Your Problem.