I couldn't find anything on the website about this. For a normal consumer-type job, would it be typical for the contractor to expect the full material cost upfront, then half the labor cost to start the work, with the remainder due upon completion?

Thanks
Craig

That is how I do it. It is simply too easy for an unscrupulous homeowner to rob a man these days.

In California, that would be illegal. Here, the law states that contractors can only ask for and receive 10% of the contract price OR $1,000.00, whichever is less, as a deposit upon signing of a contract. However, the way I handle this is to get 10% upon signing and 50% (material cost) upon delivery of materials to the jobsite. This meets the legal requirements and seems to work out for everyone involved. The problem with getting half the labor and all the material costs upfront is either crooked contractors or the contractor's inability to perform (for whatever reason). If the homeowner gives the contractor that much money up front and the contractor is unable to perform, the homeowner may not have the money to hire another contractor to perform the work. Although the original contractor should give a 100% refund if he is unable to perform, often times, the money is spent already. The 10% upon signing and 50% upon material delivery satisfies the needs of both contractor and customer.

Aha. I am in Texas - not sure if there are any regulations like the one in CA. I received some really good references for this guy, so I will likely go ahead with him.

Thanks for the info guys.

That sounds like a recipe for getting screwed,Gary.

If my client has 6,000 dollars worth of material sitting in their living room,they are by God gonna pay me for it right then. If they refuse,I smell a rat.

That means the material is mine to remove from the premises.

Game over.

I usually only supply labor, @ 50% to get on my schedule. Your not even getting penciled in if I don't have the deposit.

If for some reason my client wants me to provide a turn key installation, they are going to know up front the cost of materials to be installed and the cost of my labor, except for floor prep, because that is hidden and unknown by existing flooring, when I go look at it.

They buy the flooring and my 50%.

It is rare for me to supply the flooring, but I do mark it up if I am supplying it and I let my client know it is getting marked up. Call me honest? I'd never make money in sales!
This gives them the option to purchase it themselves.

Chuck, as I said, I get 10% of the contract price at signing. This is CA. state law. I get 50% of the balance upon delivery. Now, I actually have 55% of the contract amount prior to doing any work. This payment arrangement is clearly spelled out in the contract so the customer knows they will be paying for the material upon delivery. If no check, no delivery. It's that simple. In most cases, the material cost of my contracts is about 35 to 40%. I am always financially ahead of the game. Furthermore, all the materials I supply are supplied to me through my flooring distributors with whom I have charge accounts. I have 30 days to pay an invoice without interest. If I pay within 20 days, I get 2% terms. So I am not paying out of pocket for the material. And I do mark up the material 10 to 15%. I fail to see how I could get "screwed" unless the check bounces, then the customer is committing check fraud and the flooring would be removed from the home along with the supplier and me filing leins on the property.