Landscaping--pay 50% deposit up front?? (flooring, pool, stone, cost) - House -remodeling, decorating, construction, energy use, kitchen, bathroom, bedroom, building, rooms - City-Data Forum

Winter01 · 02-25-2009, 07:57 PM

We are going to have some landscaping work done on our yard. Does anyone think it is uncommon to pay 50% before completion and pay the remainder after completion? I guess I am nervous these days that they are going to take our money & run!! All this economy stuff has me paranoid. I guess they probably would need the deposit to buy all of the stone, etc. and they are a smaller company.

Flamingo13 · 02-25-2009, 08:07 PM

I'd be nervous - we contracted for a new deck/screened porch - they asked for a 50% deposit. I checked out references, etc. - We got screwed, they went belly-up and we lost all our money - job needs done, we'd taken out a home equity loan that we are paying on and we have no recourse

.

Apparently it's a regional thing, I have a friend in PA who says they don't get any money up front, get paid as they go.

I'd offer no more than 25% up front in these times (AFTER doing serious research on the company first).

crazyma · 02-25-2009, 08:44 PM

You could pay the businesses direct for the materials. We did that once for a pool redo. Paid for materials and then delivery to the house. As a matter of fact that is what the pool guy recommended we do, now I thought of that...
Or you could offer to pay in smaller increments, as portions of the job are done.

Winter01 · 02-25-2009, 09:05 PM

Oh, it is just a small 2 day job for a total of less than $2000--not a major one. We decided that if the small job works out okay then we will use them for the bigger projects. I guess I am just nervous because when I googled them there is not a lot of listings for them & they are just starting out. They offered us a great deal though so hopefully it is not a "you get what you pay for" type situation. They seem very legit and responsive though.

crazyma · 02-25-2009, 09:20 PM

do you know where the owner lives

heh heh Do they have a physical address or a PO box??

Have they given you some recent references of jobs completed? And if so, did you personally go look at something they did? Has the place where the stone is coming from heard of them and sold to them? Do nurseries know of them yet?
thinking out loud

(Just because they aren't 'big' or easily found online can be okay...my hubby's company back in Atl was pretty much word of mouth...advertising is expensive.)
Good luck! I always cheer for the little guys- they gotta make a living!

Winter01 · 02-25-2009, 09:32 PM

Well, they sent out a mailer and there is a physical address for the owner in a nicer neighborhood here in our town. They did show us books of some work they have done and I am going to the rock company here in town that they use to pick out the stones.

I hate that I am so untrusting because they have been so nice!

texdav · 02-25-2009, 09:41 PM

I'd ask for reference if you don't know them. Most compaies have accounts for materials that they pay afterwards. maybe Ok ;may not. Also check with city to see if they are bonded and with BBB for complaints.

f_m · 02-25-2009, 09:48 PM

My understanding is that when you deposit to a contractor, the general rule is $1000 or 10% (whichever is less). So whether a landscaper is a "contractor" is another issue, but using the same deposit rule might make sense.

BigJon3475 · 02-25-2009, 11:52 PM

We have, all the sudden, been seeing this trend of needing upfront money also. Makes me weary about the business. These were long time contractors never requiring upfront money and always receiving their pay within 2 weeks. Upon convincing they seem to figure out we will pay them but the weary feeling seems to be rampant.

Donn2390 · 02-26-2009, 04:14 PM

We just returned from a tour with our potential landscape contractor, looking at some of the other homes he has done in the area. He has done two other jobs in our development, and they are beautiful, but we're anxious to see more of his work.
His quote to us was almost $40k to landscape our back yard, so we are going to be really careful before dropping that kind of coin on him.
I asked him about his payment structure. He informed us the law (California) states he is only allowed to take 10% down payment. Anything a contractor takes over that amount, he is breaking the law. He will get other payments as the job progress', until he reaches 50%. After enough work is completed for him to get 50%, he can take no more payment until the job is completed.
Anyone asking for 50% up front is breaking the law, and it's also an indication they are extremely under financed, a sure red flag....
Time to jump on the computer and check on his contractor's licence, and if he has insurance. If he has no insurance, you will be liable if any of his crew were to get hurt on your property. You may just be supporting someone for the rest of their life...!
When we had our front yard landscaped a couple of years ago, they didn't ask for a dime until the job was completed...
We are also doing new flooring throughout, and the flooring company doesn't require any deposit. I guess they figure the house is worth the cost of their project, so they will take the house if we don't pay.
A reputable business doesn't need to ask for a huge up front deposit. I would be very leery of someone asking for 50%. If you have to finance the project for him, he better be giving you a super deal... I wouldn't do it.