Massachusetts Service Bureau Agreement - Alternative Format
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How to fill out Service Bureau Agreement - Alternative Format?
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FAQ
REMEMBER The down payment cannot be more than $1,000 or 10 percent of the contract price, whichever is less, for a home improvement job or swimming pool, excluding finance charges.
Should you sign before or after a buyer or supplier? The short answer is that it doesn't matter who signs an agreement first. In order for a contract to be legally binding, both parties must agree to a set of pre-defined terms (this is called ?mutual assent?).
Should I Give a Contractor a Deposit for My Home Project? It's normal for a contractor to ask for up to a third of the total project cost, except in California and Nevada, where state law limits down payments to 10% of the total estimated job cost or $1,000, whichever is lower.
A contractor is subject to legal action if they abandon a project without a legal right to terminate the contract. However, legal justifications for walking off a job do exist, for example: The contract allows the contractor to halt work for nonpayment and you are at least one payment behind.
On private projects, Massachusetts Prompt Pay law requires property owners to make progress payments to Prime Contractors within 45 days after approval of invoice. The invoice must be approved or denied within 15 days.
The exact deposit amount contractors ask for upfront varies and is especially dependent on the size of the project. For relatively small jobs, like a $16,000 bathroom remodel, contractors may ask for a 50% deposit. For large jobs, like a $100,000 full-home renovation, a 10%?20% deposit is more typical.
Any deposit required to be paid in advance of the start of the work cannot exceed one-third of the total contract price or the actual cost of any material or equipment of a special order or custom made nature, which must be ordered in advance of the start of the work to assure that the project will proceed on schedule.
By law, the contractor cannot collect more than 1/3 of the cost of the contract in advance, unless special order materials are needed.