A new Handyman Wants 75% of Labor Fee in Advance and 100% of Material!

[Nir]

Hi,

What is most common/standard when hiring a NEW handyman first time hiring him? we’re talking about around $5,000 work. he lives in the city where I own a rental property 2 hours from Toronto where I live.

I wouldn’t mind paying 100% in advance once we know each other. However, since we do not know each other yet asking me to pay so much in advance sounds like too much(!?).

Thoughts?

THANKS.

 

[Stephen1151]

QUOTE (investmart @ Nov 23 2008, 03:03 PM) Hi,

What is most common/standard when hiring a NEW handyman first time hiring him? we`re talking about around $5,000 work. he lives in the city where I own a rental property 2 hours from Toronto where I live.

I wouldn`t mind paying 100% in advance once we know each other. However, since we do not know each other yet asking me to pay so much in advance sounds like too much(!?).

Thoughts?

THANKS.
Sounds like to much to me. There are to many scam artists around to be to trusting...and trust is built little by little. I think a better way to approach this is tell him you will cover material costs but when he is done 25% of the work then you will pay him 25%. I would go in increments like that because you do not know this guy or his reputation.

 

[manojsingh]

Hi There,
Do not pay him that much. Once he will get all the payment he will not listen to you. I experienced this in the past Tll him once I know you then I will pay in full but not first time. If he do not trust you may be you can give him pos dtdcheue on mutually agreed date.Thanks

 

[Charly]

Don`t do it!!

Sorry, but my neighbour made the error of doing this and the guy took the money and ran. Long winded story but the law could not help him. He lost a great deal.

My advise, call the BBB (Better Business Bureau). They have helped me in the past with similar issues and have provided me with really helpful information. Most reps, will come right out on the phone and say, I would or would not do that. (At least that is my experience). You should also get someone that is registered with the BBB. I find they have more integrity. I am not suggesting anything is fool-proof, but they did direct me well.

 

[Nir]

Thanks Everyone! will do..
Neil

 

[Lucas]

QUOTE (investmart @ Nov 23 2008, 05:54 PM) Thanks Everyone! will do..
Neil


Hi Neil,

If your contractor is skilled and reliable, he should be successful. If he`s successful, he should have the money to begin the project with very little up front.

For a $5000 job I would not advance him much more than $1000. There should also be a contract that would include a payment schedule. This should delineate to both parties when exactly the payments will be AND it will create timeline for the project. Talk to the contractor about it and ask his opinions regarding the schedule and deadlines.

eg. A flooring job - $5000

Installment 1 - $1000 - Paid AFTER demolition (Ideally you will have the contractor start within a couple days of signing the contract.)

Installment 2 - $1500 - Paid at the agreed 50% mark of the renovation.

Installment 3 - $2500 - Paid upon completion.


This is just a rough idea of what I mean. Always try to give the contractor as little as possible, while still keeping him/her happy. This mitigates your risk as I have seen many contractors disappear from jobs after being paid more than they deserved.

The arrangement your contractor is suggesting is heavily weighted in their favor...

Good luck,

P.S. Make sure you take the time to get references and go inspect some of their past jobs...but verify that the work they are showing you was actually done by them by asking the owner of the properties (look at a few past jobs if possible)!!!

Lucas

 

[Nir]

Thank You lucas!

Great ideas, we`re meeting on Thursday so I have enough time to prepare/investigate that.

Cheers,
Neil

 

[r3properties]

QUOTE (investmart @ Nov 24 2008, 09:52 AM) Thank You lucas!

Great ideas, we`re meeting on Thursday so I have enough time to prepare/investigate that.

Cheers,
Neil

Hi Neil


Im a contractor and normally get the money to cover materials up front to protect myself.this is normally 25 to 40 % of the total job costs.Then the rest on completion for small jobs.Over 10k I then use installments on certain stages as the job progresses.With a final 10% payment on job completion.

John/BBG Carpentry & Renovations 416 970 5471

 

[markbrad]

Neil,

I am a builder, and any job we start for a customer requires a 10% deposit, and then instalments. This is usually done by draws on a mortgage at set intervals. And we still have grief getting paid all we are owed!!! So it works both ways. Contractors get stung too! That being said however, if he won`t start working for you for a small down payment, don`t do it. Find someone else. Maybe another idea would be to supply the materials, and pay him at the end of the day for his hourly rate, and the rest upon completion. It is unfortunate that the days are gone when you can take someone on their word, but that is just the reality in today`s world. Hope it works out for you

Mark

 

[Nir]

Thanks John and Mark for the additional feedback sharing from your experience.

I feel I`m ready for the meeting now

Neil