I am getting bids on getting a fence replaced at my house. One guy wants half upfront. I thought I'd use a credit card, but he said I'd have to pay the fee. I then told him to send me a list of the supplies needed and that I would order them and have them delivered.

Silence...

I think i dodged a bullet right there.

How is the 50% down practice handled? I am very uncomfortable with it. After all, once they have your money they can easily never come back.

I hear that. It's a 78', 6 and 8' picket fence. It involves teardown, removal, and reinstallation. I know there is a lot in material costs.

But still, I don't like the way he handles it. Someone else made similar comment about him in Google reviews.

I agree. I don't want to pay until the job is done and I can make sure I got what I am paying for.

If you offered to buy the material and have it on site then he should have no problem.

It sounds like just one roll of fencing. I would just do it myself. Get a farm jack and pull out the bad post and just put the new in the same hole. Would save you a lot of money and if you got the materials ordered and delivered then you have done some of the work yourself already.

50% down? No way. Paid upon schedule. Show up: I pay you 10% to get started. Half of the balance at a scheduled check point (end of day 1), then the balance due upon completion (end of day 2).

It depends on who it is. I have a few that do require 50% down up front (it typically will pay their materials, etc) and then 50% when completed.

Another one I use to use was 50% to start, 25% when half done and 25% when completed.

I have those same people that because they deal with me - I just have them start and when they finish, I pay them in full - but it depends on what it is that they are doing too. If I want doors installed (for example) then I will purchase the doors (or whatever) then they get paid when they are completed. If it's something that they need to purchase a bunch of stuff - then I'll throw them money. Others - don't seem to care. I have one now that I haven't even seen a bill from him yet - and I know I owe him quite a bit for a few jobs he's done for me.

For a contractor new to me, heck no! If normal fencing materials that can come from local lumberyard or Lowes/HD/Menards, I'm with you. Give me a materials list, I'll order and have materials delivered.

At the end of the first day, I'll provide a check for a % of the labor based on how much is done.

I never ever NEVER allow contractors to order my supplies. They give me the list-- I have it delivered from lowes for 29.00. This way when supplies are left over I GET to bring them back for the credit. All estimates must break down labor/materials.

On big jobs: its a line item list. I just tell them I may have this in my warehouse and we'll just use mine. It keeps the estimate honest.

6x6, I should have been more clear. The fence is 78 feet long and is 6-8' high.

Sid and Barb, I agree.

The Down Payment should not be a guessing game.

Here in CA, it's 10% of the total job amount or $2,000 whichever is lower.

I am a licensed California Contractor. Here we are only allowed to receive as a down payment on a job $1,000 or 10% or the total job--which ever is less!

However, once I've given an estimate in writing, my client can ask for a "Payment and Performance Bond". It will cost us between 2% and 3% of the total contract price. Once I provide my client with a copy of the bond, I can ask for whatever I want as a down payment.

However, it is not a good idea to ever pay money upfront, only after part of the work is done under progress payments.

Sometimes a client wants me to "special order" material that is non-refundable. The client doesn't want to pay for the "payment or performance" bond. So I provide a "supply" house with my order and let the client pay using what ever method he wishes. And have it delivered to the job site.

In order for me to provide a detailed "purchase" list, I require a "fee" up front. That is to cover my time to gauge the scope of the work and materials.

When I was to build a fence for a client, they didn't want the wood to shrink and have spaces between the boards. So I had to hand pick the wood and then dry the wood out in my heated shed. Then once dried, I had to apply marine varnish to all sides of the fence boards. In this case I had the client sign a contract and provide some limited funds upfront that were non-refundable.

I seldom use contractors but when I do I usually pay for the materials and keep any left overs. If I was hiring someone for something big, I'd pay weekly draws based on performance. I certainly wouldn't give 50% "down."

Operate like a bank. The banks don't just give you all the money for your construction loan up front. You have to meet goals and pass inspections, then they dribble it out so someone doesn't just take the next flight to Vegas. Contractors understand this. If they don't they aren't much of a contractor, or they are a crook.

For those of you who seem to like to act as your own GC, how do you handle replacing items that are damaged either upon delivery or during installation. For instance you order & have delivered some cabinets.

1. Your installer takes them out of the box, finds some damage & can't install them. Do you compensate him for his wasted time while YOU deal with fixing the problem?

Any contractor that does not have a material account at a local supply store is not worth using.

If a material supply place wont give the contractor an account there is a reason.

"how do you handle replacing items that are damaged either upon delivery or during installation. "

A lot of LL here rag on lowes installations, but this scenario is exactly why I love going thru them.

"1. Your installer takes them out of the box, finds some damage & can't install them. Do you compensate him for his wasted time while YOU deal with fixing the problem?"

I don't have to do EITHER! Either he takes it back to lowes and gets a replacement, or a new cabinet is delivered and one old taken back. I don't pay an extra penny.

"2. Your installer accidentally damages one of the cabinets during the installation. Do you deal with & pay for a replacement? or Do you expect the installer to replace a cabinet that he did not provide & did not make a profit on? "

Between him and lowes. I get a new cabinet.

I received a quote from another contractor. Same thing - 50% down. I asked if I could use a credit card. Sure - but I have to pay the 3% fee.

I typically will do one quarter or one third down 1st day of work if it is not material intensive or when I sign contract and there is heave material cost. Work it out w/ contractor what phase of construction triggers next payment. Always hold back last payment or 20% till job is inspected.

Try going to a fencing supply yard and looking at the contractors coming in or ask at the counter if they recommend anyone.

The only time we paid 50 percent down was siding a house. They bought all the siding though, well known company in town so I knew they wouldn’t run off and not finish.