I was shocked    to notice that now it is a norm for a renovation contractor to get 50% deposit/preliminary sum for them to accept and start on their renovation project. As long I am in construction industry handling even billions ringgit value for a project, the norm for the preliminary sum is always less than 10%. Thereafter, the payment shall be based on the progress work of the project.

I am not sure why a lot of the consumers are accepting 50% deposit as this really expose them to the risk of contractor running away without even starting the project. Bear in mind the contractor does not only collect the money from you but a lot more people out there like you who are giving in to their request for 50% deposit.

This disadvantage arrangement reminds me of the mega failed pipeline project in Malaysia whereby 80% payment had been made but only 13% pipeline is completed. Therefore guys, please be prudent and don’t give in to the 50% deposit/preliminary sum to the renovation contractor.

Sometimes, the contractor will give excuse that these 50% sum would be needed to buy materials and etc. You should be worried with this kind of contractor because their cashflow is not in a good position and would be at risk to run away. This risk should not be carried upon consumers.

Therefore, if everyone does not give in to the 50% deposit then we can filter out unscrupulous renovation contractors and thus leaving the good renovation contractors which will finish the work and being paid on their project progress. Heck, even banks pay developers based on Housing Development Act progress payment which do not have the nonsense 50% deposit.

That's all from me guys 

It's depend on the total quotation sum actually, if the total Sim is less than 20k,the a 59%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.

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.