Outline ·
[ Standard ] ·
Linear+
Contractor request 50% deposit?, Surely it is risky
|
ehwee
|
 Feb 23 2021, 12:04 PM
|
|
It's depend on the total quotation sum actually, if the total Sum is less than 20k,the 50%down-payment is still acceptable, more important thing is there is a official black and white contract with all the T&C and payment terms writen down between client and contractor.
For normal renovation works that is mostly more than 30k, a 20-30% down-payment is considered normal and market standard.
This post has been edited by ehwee: Feb 23 2021, 11:08 PM
|
|
|
|
|
|
ehwee
|
Feb 23 2021, 11:04 PM
|
|
|
QUOTE(kuchaikway @ Feb 23 2021, 08:48 PM) You can't be serious? I really want to know how many of your projects below 20k that you have legal contracts with your customers?? If you have a contract then you can even pay 100% down without any problem. We are talking about the reality of most if not all renovations (especially those that are below 20k) are performed without legal contracts. To have a legal enforceable contract requires time and effort to review the terms and conditions. Many renovation contractors are not making big enough margin to talk about liquidated damages, performance bonds, etc. You need lawyer(s) to review and finalize the contract. Of course one can argue to have a simple standard contract but whose's standard contract to be used? Moreover, each renovation project is different and there is not likely a single standard contract can be used. To clarify, what I meant contract was proper black and write written agreement between owner and the contractor, not the legal enforceable contract. . Of course small project like just asking contractor to do a 8k kitchen cabinet won't do legal enforceable contract like you said. Yet at least there is a written quotation copy with the contractor signature and company letter head. I know many owners just accept a hand writing quotation and make the down-payment base on verbal trust, if this is the case a 50% down-payment will be a risk for end user. This post has been edited by ehwee: Feb 23 2021, 11:48 PM |
|
|
|
|
Quote
0.0178sec
0.45
6 queries
GZIP Disabled