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Sub asking for deposit

7 years ago

I received a written bid from a sub. I agreed with the price and signed the contract. Work has not started yet and now they ask for a deposit. The contract says nothing about deposit nor payment before work starting. I signed contracts with other subs and none of them ask for a deposit. Any advice?

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net420
Original Author

7 years ago

last modified: 7 years ago

I contacted another company for estimate.
Instead of a check in the mail that they requested, it'll be a cancellation letter as Virgil suggested.

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Comments (12)

Brian 's
7 years ago
last modified: 7 years ago
You need to state what contractor, what deposit are they asking for. I normally tell exactly the same story to every contractor.

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I once paid to a contractor and he never showed up again, and stopped answering my calls. Sorry, I do not do this anymore. I can consider paying 70% the moment you completed the job, or I can consider payment to a supplier the moment materials delivered to the job site. I will not pay 50% deposit on any job.

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To be honest I can pay rough-ins materials to electrical, plummer, hvac - after they performed about a day of labor. Obviously if you pay 10k to framers - you will never see them again.
DLM2000-GW
7 years ago
We're owner builder and haven't paid a deposit to a single sub and are at drywall taping stage.
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bry911
7 years ago
How much of a deposit is he asking for? In the end, you are trusting the guy to participate in building your house, do you not trust him with a small retainer?
net420
Original Author
7 years ago
This is for waterproofing and drain tile to the foundation and they ask for 30%. I don't feel comfortable working with this sub. How would you cancel it if you already signed the contract? I want to work with someone else but what if they ignore the cancelation, show up at the site and do the work? I only want waterproofing and drain tile once.
PRO
Virgil Carter Fine Art
7 years ago
Registered letter, signature required, stating notice to cancel contract immediately.
worthy
7 years ago
last modified: 7 years ago
I've never paid a deposit other than to custom stair and rail builders and cabinetry suppliers.
bluesanne
7 years ago
How would you cancel it if you already signed the contract?
Don't pay the deposit.
But more importantly, do as Virgil has suggested.
Pam C.
7 years ago
I would probably do some homework to see if they are even licensed. Red flags for me!
net420
Original Author
7 years ago
Thank you all for the advice.
Plumbing, electrical and HVAC contracts clearly show what % is due after certain phases and I don't have problem with these. Excavation, septic and pour foundation have no payment structure except the pour foundation sub asks for full payment within 2 weeks of completion. Foundation sub also mentioned if I paid in 5 days of completion they'll give 2% off.
My concern is they may make up things to charge me more if I continue working with them. They told me twice that the price will change if the measurements they found are different.
Pam C.
7 years ago
Listen to what your gut is telling you! As you previously mentioned you don't feel comfortable with them. If their contract did not have a payment schedule as you mentioned above then you owe them nothing as a deposit. Sounds to me they have breached their own contract....which in MHO would be reason to pull out.....if I were you.
User
7 years ago
Good for you.

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