Renovation Project Downpayment

[Tyrone Marson]

Is it ok to pay half of the downpayment for a project upfront and the remaining half after specified scope of work milestones are correctly completed by the GC? Typical downpayment is based on the project cost which could go up to 1/3 of total cost.

[Matthew Paul]

@Tyrone Marson I hold a Md Home Improvement license . It sounds like you dont trust the contractor , if so find another one . We ALWAYS get 30% when we sign a contract . This doesnt just cover materials , it covers permits and fees , monies to cover dumpsters , portable bathroom , drawings ,ordering materials  and administrative costs, etc  in preparing for your job .                                 

    Professional contractors DO NOT use any of their funds to buy materials or cover ANY cost of YOUR job . If the money stops , so does the work .

      We get the next draw of 30% once the demo is complete and the framing materials are on site .

     Additional payment are  based on inspections , when we pass framing inspection we get another draw , sane with plumbing rough in , electrical , and HVAC . 

     Again when we get finals on those inspections we collect money again                      

             If there are any change orders and or extras they are paid right away 

        Your final payment is generally about 10% of the contract price .

Do your research , check your contractor on Md judical case search , go to Dept of license and regulations and check their home improvement license and complaints , if any .    

Read the rules and regulations about what a home improvement contractor can and cant do on the state web site .