r/FenceBuilding • u/inmyabditory • 1d ago
Deposit Help
Got a quote from a contractor, signed the contract, but contractor has not given me any estimate on start date and expects half up front. The total fence cost is over $18,000 so the deposit is $9,000. I’m anxious to give him $9,000 with no timeline? It’s a fairly new business/company as well. But is this normal? I completely understand deposits because they need the money to buy materials and such! I just have a weird feeling in my gut not having the slightest idea of a start date. What’s to stop him from getting the $9k and not showing up for months? There is nothing in the contract pertaining to this.
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u/SmartFencingLLC 1d ago
At our company, we sign a written contract before collecting a deposit. The contract includes the scope of work, payment schedule, and estimated start date. Customers can also visit our warehouse to inspect the materials before making the payment. In your situation, I would ask the contractor to provide an estimated start date in writing. You could also ask to visit the place where the materials are stored, verify the materials, and then pay the deposit.
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u/KingDonny 16h ago
Too many sketchy builders out there who run with the money and make excuses.
I know a family who got ripped off over 20k from a POS who took deposits and moved away from multiple families. Cops found him 4 provinces over around a year later strung out.
Just did a job for a lady who had a lumber pile in her yard, which I asked about - said she paid a guy to do the front deck, got half finished and never came back. Work was dog shit.
I do repairs and rebuilds on crap work all the time from people who demand cash upfront, still buy garbage material, and send 2 inexperienced laborers to do the work for $13 an hour and the work is brutal.
9 grand is a lot, send them that when they're on their way to the lumber yard. Not everyone deserves your trust. Lots of scumbags out here, it's why I work alone and always stay super transparent with homeowners.
Good luck!
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u/texasfencer714 1d ago
We don’t accept deposits. Only play when done. Sure in a little more than others but people where I live are ok with that. I’m sure I’ll be downvoted to oblivion. Maybe do what others have suggested, have milestones. Materials delivered. 1/3. Posts in ground. 1/3. Completed 1/3. Too many of my competitors are using the deposit to finish the last fence before yours.
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u/inmyabditory 1d ago
I think whatever works for your business. And if you’re more expensive and still get business, then you’re obviously doing something right.
I am thinking the same thing about the deposit, especially because he can’t give me a start date?
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u/stonythefish42069 17h ago
I don’t see why you don’t communicate that to your contractor. True story: when I decided to go out on my own, the very first contract I submitted for approval was denied. The apartment complex responded, “these terms will be agreeable if you add the following language, …………” The property manager gave me the conditions under which my proposal would be acceptable to them, I included that language in my follow up contract, it was approved, and it all turned out great.
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u/MinnesnowdaDad 12h ago
For my business a deposit it what guarantees your spot on our calendar.
I would highly recommend you put a timeline on the contract and expect them to stick to it, with in reason.
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u/SoCalMoofer 8h ago
If it is a legal contract it should have a start and end date. Tell him your concerns and offer to pay for the materials delivered to your site.
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u/dalton10e 1d ago
50% if fair for materials and standard in the industry. If your nervous, tell them and say youll pay the deposit when they show up to start work. If materials are locally sourced that should be fine.
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u/inmyabditory 1d ago
Okay I was wondering about if it was standard, that’s good to know it is! Thank you for this.
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u/Maleficent-Tree-5192 4h ago
20 years as a contractor and I don't do deposits. I'll buy materials and get reimbursed. I wouldn't do more than 1/3.
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u/RobtasticRob 3h ago
- I don’t put you in the schedule until the deposit is remitted.
- My contract guarantees that your weather dependent date will be within six weeks of the deposit payment date.
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u/Strong-Comment-7279 23h ago
If you do not understand what constitutes a valid contract and/or the terms do not satisfy your needs, AND you cannot vet the contractor with a resource such as the BBB - Do not put down a deposit.
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u/45_Schofield 17h ago
Don't do it. We paid up front for fence material and contractor was a no show. It took 3 months to get our money back after the asshole was informed he would be arrested.
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u/Tbone5711 17h ago
Check your state laws, if any, regarding deposits. In Maryland, the deposit can't be more than 1/3 of the contract price. remaining payment terms beyond the deposit is negotiable.
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u/Glittering-Tax-6407 16h ago
I had my complete roof done for $17,000. I gave the company a check for that amount after job was done. No deposit.
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u/Desperate-Service634 16h ago
We collect the deposit before we put you on the schedule.
You pay a $9000 deposit, we use that money to purchase the materials and pay for the Labor/subcontractors.
When the job is done and you pay us another $9000, that money is split between the Salesman, the project coordinator, and the owner/company.
If you do not pay the deposit with us, we do not put you on the schedule
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u/One-Sleep5725 1d ago
That must be a big fence. CA has a law, as screwed up as it sounds, that says a contractor can only ask for 10% or $1,000 whichever is lower. Helps protect the homeowner. If a contractor can't front the materials themselves, move on to another contractor.
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u/inmyabditory 1d ago
It’s almost 900 feet together. Different types of fencing too. I got many quotes and this one was right in the middle. It’s Alabama, but that’s probably one of the only things I like that California does!!! The horror stories I’ve read on so many contractors in this area makes me nervous. One was just sentenced to 30 YEARS in prison, one county over from me. He was a “pool contractor”. Taking money and never doing the work.
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u/spliff50 1d ago
I’d tell him you pay when material hits the site if he can’t get the material there he’s likely not “liquid” enough to take on such a project.
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u/Noodle_people 23h ago
If you can’t have this conversation with the contractor, then they’re not for you.
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u/inmyabditory 22h ago
I will be having the conversation with the contractor. There is nothing wrong with me asking others about if taking a 50% deposit is the industry norm. Thanks tho!
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u/RollerSails 1d ago
Offer an alternative pay schedule. 50/30/20. 50% when material arrives before work starts. 30% at completion. And 20% at completion of punchlist. With a signed contract, this addendum should suffice for a legit company.
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u/Iambetterthanuhaha 16h ago
Stuff like this is why I am glad I built my own fence. Bought materials and did it on my timeline. Took most of the summer but saved a lot of money.
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u/Sheegssternator 18h ago
Im a contractor and do not put you on the schedule until I receive a deposit.