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If the contractor requests a large sum of money before work has begun, Mozen says you should ask specifically what types of work or materials those payments are covering.Contractors sometimes have other motives, other than purchasing materials, when they ask for large amounts of money in advance, Fowler says.
The Commonwealth of Pennsylvania currently has no licensure or certification requirements for most construction contractors (or their employees).
The Commonwealth of Pennsylvania currently has no licensure or certification requirements for most construction contractors (or their employees).
Contractors can legally only ask for 1/3 of the contract price up front. It's considered fraud if a substantial portion of the work is not performed in the time requested, or more than 45 days go by without work being done.
Fortunately, Pennsylvania does a fairly good job of providing options to resolve your contractor dispute. Your first and least expensive option is to make a formal complaint to the Pennsylvania Attorney General's office. If you go to the website attorneygeneral.gov there is an option to File a Complaint.
A: It's not uncommon for contractors to ask for a down payment up front to secure your spot on their schedule or purchase some of the job materials in advance. Asking for more than half of the project cost up front, though, is a big red flag.I recommend tying payments to progress made during the job.
Renovation. Repairing. Removal. Demolition. Remodeling. Replacement. Installation. Conversion.
Estimates, generally, must be professionally reasonable. A 10-20% overage might be considered reasonable, especially if the contractor discovered issues along the way that he couldn't have been aware of initially (for example, mold or flooding).
In California, the state limits advance payment at the time of contract signing to 10% of the total estimated job cost or $1,000, whichever amount is lower! All payments thereafter are supposed to be made for work performed or for materials delivered to the job site.