How much of a deposit should you give a contractor?

Payment Schedule In Your Contract Before any work begins, a contractor will ask a homeowner to secure the job with a down payment. It shouldn't be more than 10-20 percent of the total cost of the job. Homeowners should never pay a contractor more than 10-20% before they've even stepped foot in their home.

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Arizona Plumbing Contract for Contractor

Plumbing Service Agreements

Name: Arizona Plumbing Contract for Contractor
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.83 (379 reviews)

Category:

Arizona Construction - Contractors - Plumbing

State:

Arizona

Control #:

AZ-00462-4

Format:

Instant download

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Description Plumbing Service Contracts

This form is designed for use between Plumbing Contractors and Property Owners and may be executed with either a cost plus or fixed fee payment arrangement. This contract addresses such matters as change orders, work site information, warranty and insurance. This form was specifically drafted to comply with the laws of the State of Arizona.

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FAQ

Most Construction contractors (both primes and subs) must be licensed with the Arizona Registrar of Contractors; some exemptions apply. To become a licensed contractor, you must submit an application showing you have passed one or more written exams, met appropriate experience requirements, and have sufficient bonding.

A: It's not uncommon for contractors to ask for a down payment up front to secure your spot on their schedule or purchase some of the job materials in advance. Asking for more than half of the project cost up front, though, is a big red flag.I recommend tying payments to progress made during the job.

The minimum penalty for contracting without a license as a first offense is a fine of $1,000 plus an 83% surcharge. A.R.S. § 32-1164(B). In most cases, an unlicensed contractor will simply face a fine, but jail time is not out of the question if the perpetrator is a repeat offender or the facts are egregious.

Arizona law allows unlicensed contractors to perform certain jobs as long as they cost less than $1,000, including labor, materials and other items. This is commonly referred to as Arizona's "handyman" exemption for a limited range of services.

Payment Schedule In Your Contract Before any work begins, a contractor will ask a homeowner to secure the job with a down payment. It shouldn't be more than 10-20 percent of the total cost of the job. Homeowners should never pay a contractor more than 10-20% before they've even stepped foot in their home.

Contracting without a license in violation of A.R.S. § 32-1151 is a class 1 misdemeanor (A.R.S. A§ 32-1164).In most cases, an unlicensed contractor will simply face a fine, but jail time is not out of the question if the perpetrator is a repeat offender or the facts are egregious.

You shouldn't pay more than 10 percent of the estimated contract price upfront, according to the Contractors State License Board.

Many contractors won't ask for any more than 10 percent, but if you're uncomfortable with even that amount, Palmer says shop around. Get at least three bids for a job. A down payment may not be needed at all.

Plumbing Service Agreements

Description Plumbing Service Contracts

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FAQ

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Is it normal for contractor to ask for half up front?

What is the penalty for contracting without a license in Arizona?

How much work can you do without a contractor license in Arizona?

How much of a deposit should you give a contractor?

Is it illegal to hire an unlicensed contractor in Arizona?

How much money should you give a contractor up front?

How much can a contractor ask for upfront in Arizona?

How much can a contractor ask for up front in Arizona?

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