How much do you give a contractor up front?

My contractor asked for a 50% upfront deposit before starting work. How much should pay upfront to contractor?

Question from Carol Jones - Mon 2021-04-09

Answers 2

  • It's typically customary to pay a contractor between 10-25% of the total project cost upfront. This deposit will ensure that the contractor begins work and also helps to cover any initial costs associated with starting the project. If for any reason you need to cancel the project, this money will typically be refunded to you.

    Response from Brian Williams - Mon 2022-09-12

    A deposit is usually required before starting work. The amount should be based on the estimated cost of the project and the contractor's estimate of how long the project will take. It's important to have a clear understanding of what work will be done, when it will be done, and what the final cost of the project will be before making a payment. Any changes to the scope of work or changes in the estimated finish date should also be reflected in an updated contract and new estimate. If there is a dispute about payment or if the contractor fails to complete the project as agreed, recourse may be available through legal channels.

    Response from Robert Hernandez - Mon 2022-07-13

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