Should you pay a contractor before or after the job is done?

Payment Schedule In Your ContractBefore 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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Massachusetts Site Work Contract for Contractor

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Name: Massachusetts Site Work Contract for Contractor
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.57 (212 reviews)

Category:

Massachusetts Construction - Contractors - Site Work

State:

Massachusetts

Control #:

MA-00462-23

Format:

Instant download

Upgrade to a Package! Site Work Contractor Value Pack. Essential Forms. Go to Package

Description

This form is designed for use between Site Work 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 Massachusetts.

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FAQ

Identifying/Contact Information. Title and Description of the Project. Projected Timeline and Completion Date. Cost Estimate and Payment Schedule. Stop Work Clause and Stop Payment Clause. Act of God Clause. Change Order Agreement. Warranty.

Both parties should sign the contract, and both should be bound by the terms and conditions spelled out in the agreement. In general that means the contractor will be obliged to provide specified materials and to perform certain services for you. In turn, you will be required to pay for those goods and that labor.

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

In order to cancel the transaction, the consumer must send the notice of cancellation form, or some other written statement indicating the intent to cancel the contract, to the creditor at the address stated on the notice. This notice need only state the consumer's intention to cancel the transaction.

Massachusetts law prohibits a contractor requiring an initial deposit of over 33% of the total contract price unless special materials are ordered. Any contractor demanding over a 33% deposit should raise a huge red flag .

Begin with the Date and the Address of the Other Party. Start with the Basic Details of the Planned Work. Include Special Stipulations. State Whether There Will be a Further Agreement. Create an Area for Signatures. Sign and Date the Contract Letter.

If the contractor requests a large sum of money before work has begun, Mozen says you should ask specifically what types of work or materials those payments are covering.Contractors sometimes have other motives, other than purchasing materials, when they ask for large amounts of money in advance, Fowler says.

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 ContractBefore 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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FAQ

How do I write a contract for a general contractor?

Do you sign a contract with a contractor?

How much money should you give a contractor up front?

How do I break a contract with a contractor?

How much can a contractor ask for upfront in Massachusetts?

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Can a contractor ask for more money?

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

Should you pay a contractor before or after the job is done?

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