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267
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70
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Wendy S.
  • Ellenwood, GA
70
Votes |
267
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Paying contractor deposit on Labor

Wendy S.
  • Ellenwood, GA
Posted

Good day, I know this topic has been discussed numerous times so I may be venting or just tired that contractors believe they should get significant deposits on labor.

For projects under $50,000, with the owner paying for the materials sourced by the contractor, how much is a reasonable deposit on labor for the job to get started?

Contractors have more leverage as they can put a lien against your property for valid work done. So it's a no brainer for the owner to pay them.

What do owners have? The potential of a pyrrhic victory?

Looking at a job for $28,000.

Contractor wants $8,000 deposit for labor.

Another for $38,000 labor only

Labor request deposit $15,000???

Most Popular Reply

User Stats

1,240
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3,067
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Terrell Garren
  • Rental Property Investor
  • Concord, NC
3,067
Votes |
1,240
Posts
Terrell Garren
  • Rental Property Investor
  • Concord, NC
Replied

I've been paying contractors for decades. Never made a deposit on labor. 

Good contractors are not cheap. Cheap contractors are not good. 

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