Painting Contractor wants 50% down for labor only deal

[Sylvia H.]

I have a house that needs to be painted. Painting contractor is someone I've never heard of or dealt with. The painter wants 50% down (6,000 dollars) for a job that should take no longer than a week. Since I don't know this person I don't want to give him that much money upfront because I may never see him again. I looked him up online and there was only 1 review albeit positive. Does anyone know of a way around this? Perhaps an escrow company? Appreciate the help. Thanks

[Andrew Freed]

Seems sketchy, have a conversation with him. Let me know you don't feel comfortable giving that amount for a deposit. Ask him if he is willing to change the payment terms to 25% up front, 25% mid job and 50% at the end. If they aren't willing to work with you on the payment schedule, that is a good indication that they might have scammed you. Most contractors are willing to compromise to make everyone comfortable.

Lastly, you could always ask for references of past clients as well since it sounds like they don't have that many reviews. 

[Mwazomela Thurmond]

When I worked for a landscaping contractor, someone asked us if they could speak to our past customers. But, honestly if you already have doubts, I think you should consider interviewing additional painters and find a contractor with the amount of reviews you need to feel comfortable. 

[Matthew Paul]

On the flip side , the contractor has never dealt with you before either . How do they know you will pay ?  

That being said , check to see if they are licensed and insured and discuss this with the contractor , if you still dont feel right about it find another contractor .

[Kevin Paulk]

The way around this is to run and don't look back. 

[Eliott Elias]

Yes, don't hire him. Too much risk, only pay for material up front. 

[Samuel Eddinger]

@Sylvia H. - the way around this is to offer to pay for the materials up front (call in a credit card number).  Most vendors are willing to not be paid for their time up front but want to be paid for materials up front.

I run a PM company so we are constantly vetting new vendors.  This is how we make sure to not get scammed before we develop a relationship.

[Patricia Steiner]

What starts out crazy, ends crazier.  

[Bruce Woodruff]

Never pay 50%. He should be able to start for 0 or 10% down, unless he is using Peter to pay Paul. He has little risk if there is a legal signed contract, and if he is licensed (he can lien your house if you don't pay).

So I'd tell him 10% up front, and progress payments. If he balks at this, find someone else.

And definitely check his license status online. cslb.your state or similar.

[Scott E.]

It is very normal to give a contractor a deposit up front before they start work. Some contractors will begin work without a deposit. Some will only ask that you pay for materials in the beginning. But it is totally acceptable and normal to pay somebody 50% of the job before they start and the remaining 50% of the job when they finish.

With that being said, you should only be doing this with a contractor that you have vetted. Don't hire this guy, you don't know him and you've never worked with him. 

Pick up the phone and ask all of your friends, family members, realtors, etc if they have a recommendation for a painter. Hire based on a referral from somebody that you trust. You'll rarely get burned with this approach. 

[Bruce Woodruff]

Some states only allow a max of 10% or $1000 up front. Check with your state.

But as we've said, check to see if he is even licensed, I bet he's not....

[Sylvia H.]

Quote from @Samuel Eddinger:

@Sylvia H. - the way around this is to offer to pay for the materials up front (call in a credit card number).  Most vendors are willing to not be paid for their time up front but want to be paid for materials up front.

I run a PM company so we are constantly vetting new vendors.  This is how we make sure to not get scammed before we develop a relationship.

 Thanks thats a great idea. 

[Sylvia H.]

Quote from @Scott E.:

It is very normal to give a contractor a deposit up front before they start work. Some contractors will begin work without a deposit. Some will only ask that you pay for materials in the beginning. But it is totally acceptable and normal to pay somebody 50% of the job before they start and the remaining 50% of the job when they finish.

With that being said, you should only be doing this with a contractor that you have vetted. Don't hire this guy, you don't know him and you've never worked with him. 

Pick up the phone and ask all of your friends, family members, realtors, etc if they have a recommendation for a painter. Hire based on a referral from somebody that you trust. You'll rarely get burned with this approach. 

 That's great advice. Thanks

[Tommy Parker]

Quote from @Patricia Steiner:

What starts out crazy, ends crazier.  

 I second this! Yeah, I'd say don't do business with this painter.

[Matthew Paul]

Quote from @Bruce Woodruff:

Some states only allow a max of 10% or $1000 up front. Check with your state.

But as we've said, check to see if he is even licensed, I bet he's not....

 Maryland is 33 percent up front when the contract is signed . Then 33 percent when the job starts , balance at end .

[Bruce Woodruff]

Quote from @Matthew Paul:

Quote from @Bruce Woodruff:

Some states only allow a max of 10% or $1000 up front. Check with your state.

But as we've said, check to see if he is even licensed, I bet he's not....

 Maryland is 33 percent up front when the contract is signed . Then 33 percent when the job starts , balance at end .

Gotcha. California was 10% or $1000, whichever was less.

[Bud Gaffney]

@Sylvia H. Give him 25% down. 25% half way through. 50% at final. ALWAYS HOLD $ BACK. ALWAYS !

[Malek Bohsali]

The answer is No

[Jason Brown]

@Sylvia H.

Maybe I’m the only person who is ignorant here but what exactly is being painted that’s running you 12K? That’s a bag of money.

[Bruce Woodruff]

Quote from @Jason Brown:

@Sylvia H.

Maybe I’m the only person who is ignorant here but what exactly is being painted that’s running you 12K? That’s a bag of money.

That would be a typical interior of a good sized house. I used to pay $80k for an interior and exterior of a custom home...

[Joel Forsythe]

Quote from @Sylvia H.:

Since I don't know this person I don't want to give him that much money upfront because I may never see him again.

It’s a 1 week gig apparently, just get 2 more bids. Compare them. I wouldn’t waste too much time forcing square pegs into round holes. Offer this painter 20/80 split for a one week gig? see him say ok or not. Multiple payments on a 1 week gig? People please, only if they are getting a check several weeks before a start date, offer 10‰ then more when crew takes site, pay the day they clean out.

[Matthew Paul]

A Twelve thousand dollar paint job is a good size job . I am a contractor . On something like this we would get a 1/3 deposit when we sign the job .  At that point I have to schedule the job , order the paint and supplies .  There will be a couple days of prep work before the painting , then the painting itself .  

If a customer only wanted to give 10 per cent as a deposit , thats a deal breaker on our end . We do not finance customers jobs , we work from customers funds . Never let the work get ahead of the money . As a licensed contractor if I dont follow the terms of the contract I can lose my license and face civil penalties . There are plenty of deadbeat CUSTOMERS out there .  Prior to signing a contract we do a data search of the customer on the Md State court system to see if they are being sued  , like to sue , and have judgements against them .

I do have to say 50% is a wee bit steep as a deposit , but I dont know the laws of the state where the work is being done 

[Bill Brandt]

This is a labor only job. At $12,000 it’s probably a 7-10,000sf house? Most of my properties ar 2000-2400sf at $3,000-3,500. We’ve always paid after it was done. But these are 1 day jobs. 

If you’re local and it’s a 7 day labor only job and you’re sure you’re not paying a 100% markup over “normal” prices. Maybe you could pay 20% day 1, 20% day 2 and and 10% days 3-6 and 20% on the last day?  It’s labor only, they have no sunk costs. 

But I would certainly compare their price to a full fledged painting business with a retail location where I could use a credit card. And you better be saving 10-20% minimum. 

[Bruce Woodruff]

Quote from @Matthew Paul:

There are plenty of deadbeat CUSTOMERS out there .

Yep. Far more deadbeat customers than Contractors. They have nothing to lose compared to the Contractor. They have no insurance/bond/license for the other party to go after.....

[Sylvia H.]

Its a 4000 square foot home. I have also always paid after the job was done but these people seem to want everything up front. I figured out a way around it though. They agreed to take a credit card payment so they get paid and I am covered by my bank if they skip out and don't complete the job. Win win for everyone all around.