A contractor charging a deposit on a larger job isn’t necessarily a matter of being unable to float material costs; it’s a bit of security that the customer is committed to the project. Skin in the game.
Willing or able. Not just able. I don’t get paid before I do my work, no matter how much skin I have in the game. Neither should the contractor.
For the record, I’ve had windows, roofing, HVAC, plumbing and concrete work done. Never had anyone ask for money up front. Would have used someone else if they had.
Are windows custom built? If so, that may account for why they’d need to be paid up front. Something like a pallet of shingles can be returned for a small restocking fee, but custom items often aren’t returnable. The customer could easily back out and leave the contractor stuck holding thousands of dollars of useless materials. But even in that case, there should be a way for the customer to pay the supplier directly so that the contractor can’t run off with his money. Wasn’t there a thread here recently about someone who was having a barn built and the contractor took the money for materials and was never seen from again?
FWIW, we just had two Milgard double-hung windows put in to replace a couple of single-hung windows. We also had the contractor punch a hole in the kitchen wall and install a new garden window. This required rerouting some electrical, as well. It took them over a week to completely install and trim out everything. Total cost was between $5k-$6k.
I probably wouldn’t trust a contractor that needed money up front before providing anything.
That said I’m in an affluent area with a range of contractors. I’m on the high end as are the others I work with. The better contractors have no shortage of work. You wouldn’t be able to get any of us to work for you. There are lesser contractors that might need the work.
I generally will not take on a new customer without a referral from another contractor or existing customer.
My policy for new customers is money for materials up front. If they want to wait for delivery that’s fine. Payment for labor on completion. I don’t ask for any payment up front for existing customers.
My typical residential project is replacing a pump or pressure tank. Those jobs are rarely over $3k. If it’s a more complex project new wells or infrastructure there will be a payment structure in the contract based on progress.
I have a lot of expertise, equipment and contacts. Generally when people are calling me they have no running water. If they want to play games forcing me to float everything they can find someone else. What sucks for them is other companies may not have the turn around time my company provides. This comes into play with larger more expensive jobs all the time.
Meh. Different businesses are different. I’m sure you buy a lot of products and services that require payment (in full, even) up front.
I didn’t start out asking for money up front, until I had a few customers try to get out of paying for completed work–or decide to “wait” indefinitely in the middle of a project (but after the hard part they really needed was done for them).
Now, anything bigger than a simple service call requires a contract and a deposit.
ETA: Interestingly, my deposit policy is the same as the California standard mentioned upthread, though I have never worked there, nor heard of the rule before this thread.
My husband delivers to construction sites and the general consensus is that Marvin is the best. But they don’t give them away. Could you keep a straight face when he quoted you 25k? I surely couldn’t.
Actually, a customer unwilling to put down material deposits is a huge red flag to the contractor. I work with several contractors regularly, and they often talk about an “asshole tax” they put on bids where the customer tries to make everything one sided.
Never hire a contractor without good references and you rarely have to worry about stuff like that.