How much should you pay a contractor upfront?
A deposit is normal. Paying for the whole job before it starts is not.
A deposit is normal. It lets a contractor order materials and hold a place on the schedule for you. Paying for the whole job before it starts is not normal, and it removes the one thing that keeps a job moving: money still owed.
A fair setup
Most fair payment schedules tie money to progress:
- A deposit to get on the schedule
- A payment when materials arrive or work begins
- On longer jobs, one or two payments at clear milestones
- A final payment after you have walked the finished job
The exact split depends on the trade. A job with expensive custom materials reasonably needs more upfront than a labor-heavy repair.
Check your state's rules
Rules vary by state, and some states cap how much a contractor may take as a deposit on home improvement work. Your state's consumer protection office or contractor licensing board will say. It is a five-minute search and worth doing before a large job.
The last payment
Before you pay the balance, walk the job with the contractor. Open every gate, run every faucet, look at every corner. Write down anything unfinished or wrong. That list is called a punch list, and the balance is due when it is done.
On bigger jobs, ask for a lien waiver with the final payment: a signed statement that they have been paid and give up the right to put a lien on your house.
When to slow down
If someone wants most of the money before they start, or wants it in cash with no receipt, slow down and get another quote.