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.

US Legal Forms
Arizona Excavation Contractor Package

Az Excavation Contractors

Name: Arizona Excavation Contractor Package
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.78 (466 reviews)

Category:

Arizona Construction - Contractors - Excavation

State:

Arizona

Control #:

AZ-P051-PKG

Format:

Instant download

Description

This package contains essential legal documents for Excavation Contractors to use to assert their legal rights or claims and to address important legal issues regarding particular residential excavation, backfill, grading or hauling projects. The heart of this package is an excavation contract that complies with state law.

Included in your package are the following forms:

1. An Excavation, Backfill, Grading and Hauling Contract - Cost Plus or Fixed Fee
2. A Change Order Sheet
3. A Certificate of Completion
4. A Weekly Equipment Summary
5. A Worker Safety and Health Plan
6. A Summary of Estimate
7. A Bid Log
8. A Bid Follow Up Letter and
9. A Construction Project Information Sheet.

Purchase this package and save more than 50% over purchasing the forms separately!

View Arizona Contractors Forms Package

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View Arizona Subcontractors Package

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View Owner's and Contractor Affidavit of Completion and Payment to Subcontractors

View this form

View Sample Complaint by Contractor for Amount Due

View this form

View Contractor Indemnification

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FAQ

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.

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.

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.

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.

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.

The application fees are between $80 and $200, while the license fees are between $270 and $580. Last but not least, you have to post a contractor license bond. Its amount also depends on the license classification you want to obtain.

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Az Excavation Contractors

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