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A: There is no limit by law, but it should be a negotiated sum between the homeowner and contractor. Generally, deposits should be limited to around 10% of the contract price, but this also depends on the remaining pay schedule. Contractors typically ask for deposits for material costs.

When a subcontractor has performed in ance with the provisions of his contract, the contractor shall pay to his subcontractor and each subcontractor shall pay to his subcontractor, within seven days of receipt by the contractor or subcontractor of each periodic or final payment, the full amount received for such ...

A deposit is an amount of money given to the contractor in order to begin the project. Contractors usually use deposited funds to start purchasing materials and to pay for their labor costs as work ramps up. How deposits are applied against future invoices can vary from contractor to contractor.

The prompt pay law requires that insurers allow at least 180 days from the date of service or discharge for a claim to be filed, but they may allow more time than that. No distinction is made in the law for primary or secondary coverage.

In all of North Carolina, general contractors must provide: A $350,000 bond when applying for a limited license. A $1,000,000 bond when applying for an intermediate license. A $2,000,000 bond when applying for an unlimited license.

2. Get yourself a contracting license. It is common for a city or county to only allow independent contractors to work if they have a contracting license. You should do this even if you work from your house, because there can be a penalty fee if you skip it; fortunately, it is a pretty inexpensive and simple process.