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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.
Markups vary from one contractor to the next and possibly from one project to the next. But as a general guide, the typical markup on materials will be between 7.5 and 10%. However, some contractors will mark up materials as much as 20 percent, according to the Corporate Finance Institute.
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.
In Nevada and California, advance payments when you sign a contract are limited to 10% of the total estimated job cost or $1,000, whichever is lower.
Simply mail the complaint form to: Northern Nevada Office: 9670 Gateway Drive, Suite 100 Reno, NV 89521. Investigations: (775) 688-1150 Fax: (775) 688-1271. Southern Nevada Office: 2310 Corporate Circle, Suite 200 Henderson, NV 89074. Investigations: (702) 486-1110 Fax: (702) 486-1190.
You may file your complaint by calling the Nevada State Contractors Board (NSCB) to request a licensed contractor complaint form. You can also download the complaint form online at: , click on ?Forms,? then ?Complaint Forms.?
As the homeowner who is commissioning the project, it's reasonable to withhold at least 10% as your final payment. Avoid paying in full upfront, and definitely avoid paying anything before the contractor has evaluated the project in person.
The Nevada Residential and Small Commercial B-2 license allows for the construction or remodeling of houses and other structures which support, shelter, or enclose persons or animals or other chattels, and which do not extend more than three stories above the ground and one story below the ground.
Who must be licensed as a contractor? All businesses or individuals who construct or alter any building, highway, road, parking facility, railroad, excavation, or other structure in Nevada must be licensed by the Nevada State Contractors Board.
