**WARNING** Don't Fall for These Home Contractor Scams!

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[jamesogden]

As a contractor using the payment schedule seems to keep the client happy. We do require material costs up front due to our location and history of clients scamming the contractor.

[jlindo]

I’m a contractor and I agree I never take deposits unless it’s 1k or more and when I do it’s only for the materials I want to make sure my customer is satisfied before I receive payment but I also only work for people I know and trust and or referred

[jasonrichards]

I disagree, I own my own Contracting business, and ½ down sometimes protects the Contractor from homeowners that don't want to pay. I only work for referred customers I trust

[ScGx]

Making deposits of 50% or more means your not gonna scam the contractors and that your serious about getting the job done. This covers materials and some labor until job is complete. Now if the job is over $100k then yes setting up a payment of completion is required so that each task gets met and company gets paid for work completed.

[JacquelynRivera]

As a contractor and carpenter it really depends on how large the job is, the amount of material needed and at what phases, the length of time the proposed work is going to take, etc.. There is NOT a one size fits all when it comes to carpentry work. I usually do a (3) increment payment plan with a 33% deposit, a 33% phase one payment and 33% phase two payment for smaller jobs. If it's a larger job, I usually do (4)-(5) payment spread over 20%-25% payments if the material needed is covered in the deposit and each phase. My clients get a detailed analysis of what's going on for everything and in my over ten years of doing this, I've NEVER had an unhappy client. In fact, I get all of my work through my clients! I don't even advertise and I'm booked out for the next three years as it is right now!

[my_master]

I've been working in construction my entire life.. I'm now 40 years old I own my own GC company for 12 years. (it did okay) I am now the lead maintenance engineer for a pristine management company here in Chicago Illinois. I'm saying that to say this. Whenever dealing with money you need to be cautious, that being said most contractors either work with half down and half upon completion or what I did one third down 1/3 in the middle of the job then one third upon completion. Although I do agree the way a contractor accepts payments can be a red flag but on that same note that doesn't mean anything I've known plenty of contractors that take half down and half upon completion their own several multi-unit buildings along with their own multi-million dollar property. So basically I disagree with the premise of your statement!!! To attribute the type of payment someone is willing to accept as a character flaw or red flag in their business is just ridiculous you have no right to tell anyone how to run their business

[josephdestaubin]

36 years in construction, and never ever have I taken a single penny as a deposit, nor have I ever been ripped off by a customer.. In fact the matter is there is it's in my best interest to not take it deposit. Who the hell wants a stressed out customer on the 1st day of a job? Sometimes, and only rarely, I will have a customer cut me a check on the day that I land material on the site. This check will cover both the cost of material and the profit generated from the material, but not any labor costs. This way my customer doesn't have to be stressed out, I don't have to be stressed out, and it builds trust right away.

[samthekashman]

This depends a lot on what you do. If somebody orders an 8k custom garage door you better believe they’re covering 100% cost up front. I’m not sitting on something nearly un sellable for years because somebody changed their mind.

[erichood]

You can't be expected to pay for customers materials out of pocket ever. Especially when they can run 10 k

[pokecandytv]

I disagree partially. If it’s a smaller size job under let’s say $2000, then there should be no reason the technician should take a deposit.
Just have a contract signed for payment after completion. On the other hand, there are projects that are more costly and involve some third party help and as a business owner and service technician, I do not want to risk thousands of dollars that I have to pay out of my pocket for third party help. Customers that I work for all the time, I do not mind. It’s goes by the situation for me. Best advice I can give to a customer that has to pay a deposit, is do your research on the company.
Reviews will tell you a lot, if the company is known for ripping people off, I guarantee there will be a review you will be able to see.

[michaelcarlton]

Totally disagree. 50% pays for materials and labor cost. That way if the customer screws you at least your help is payed and materials are payed.

[xxmadmanxx]

I did third down, third on half completion, and third upon completion. Then had customers buy their own materials, I didn’t up charge on materials. I liked helping people but after years my back couldn’t handle it anymore. I retired which honestly was the best decision because it allowed me to finally pursue my passion. Things worked out great but I miss helping people out.

[wendybesse]

TRUTH!! 🙌
I worked for a construction co that used one (or several) customer(s) 50% deposit(s) to finish paying for ONE job. Then they'd delay the start of the customer(s) job(s) who have already paid their deposit until they got paid for the job they just completed.
Customers would literally bankroll all the other jobs. They'd take the deposit but reschedule multiple times until they recouped the deposit to start their job.
Customers were guaranteed (verbally) start & completion dates of job but once this guy had their money the Customers were at the contractors mercy.

NEVER GIVE A 50% DEPOSIT up front - contractors say it's to pay for supplies for the customers job & may even visit a home store with you nnas you show them what style/designs If thungs tou want installed. They'll take notes, take your money then spend it on another customer.
This guy had both cash flow issues and robbed Peter to pay Paul.
It's great advice to follow multi step payment schedule for completed work. You can even purchase supplies yourself or meet a contractor at the store to pay for supplies yourself and make sure they are delivered immediately & directly to your jobsite.

[MaxGrif]

You guys are the dads I never knew😂 This stuff makes sense to do

[ivan]

It’s easier to collect a deposit then to collect 10 payments to equal that deposit. Also materials have to be paid for right?
It’s normal in my area to collect 50% up front

[svgehatheadventurebegins]

The only good thing is now I'm so busy that if you don't want to agree to a 50% deposit which covers my 30% material increase my insurance which is gone through the roof even though in 40 years I've never had a claim and the rise in labor cost so yeah when I take 50%, it's because I'm not building your house on my money I'm not doing it you know because in Florida once you bring the materials to the job site and they are on the job site whether or not the customer pays you the materials belong to them and trust me it's not the contractors for the most part you have to worry about it's the customers screwing you that you have to worry about so you don't like the 50% deposit then guess what I've got 12 other people that are willing to pay it to get the job done, hey matey they can call you, and you can do the job for 10% down!!

[geraldcoreus]

Man keep it coming with these videos.. I love it

[DR-mpgv]

if I were a rat catcher then I wouldn't need to ask for 50% up front. lol

[joer]

The plumbing company I work requires 50% down for bigger jobs. We have a 5 star reviews.

[justhere]

Ppl that don’t charge 50 down charge a hella lot more at the finally payment. Plus it’s not a scam. It’s more for protection especially if it’s a big job. Most ppl don’t pay or change their mind half way after u paid for all material you needed for the job and did the work. Honestly I don’t see how this is a scam especially for the reasons he gave. It could be a coMpany starting up. Only time it’s a scam is if the do not finish nor do the job!