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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.
To do work as a contractor in the Commonwealth of Massachusetts, you need to be properly licensed.For projects consisting of 35,000 cubic feet of living space or less, an unrestricted construction supervisor license is required.
You shouldn't pay more than 10 percent of the estimated contract price upfront, according to the Contractors State License Board.
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.
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 .
Find out who can be classified as an independent contractor. In Massachusetts, most people who work or provide services are considered employees under the law.Employers who misclassify employees as independent contractors may face criminal enforcement or civil penalties.
Most workers in Massachusetts can get unemployment benefits, but some cannot. Workers who cannot get Unemployment Insurance include: employees of churches and some religious organizations; independent consultants or independent contractors (people who not work under the direction and control of an employer.
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.
Anyone who wants to operate as a general contractor in Massachusetts needs a Massachusetts Construction Supervisor Licenseeither restricted or unrestricted. Learn how to get a contractor's license in Massachusetts below, and work with Surety Bond Professionals to get a contractor license bond.
