Many large contractors do not charge a deposit unless they need to special order expensive materials. In that case, they may choose to bill for the cost of goods at the time the expense incurs. Some states limit how much a contractor can charge in-advance or as a deposit. These laws are intended to protect the consumer. Experienced contractors or construction companies have enough capital to perform their jobs; however, if you are just starting out or perform a few side jobs, you may not.
Our contracts offer you the option of configuring installment payments, which may help smaller companies who cannot front the entire cost of the job upfront. To help take some of the financial burdens off of you, you could:
Invoice your client for the cost of materials (make sure they know this in advance and agree to it)
Include installment payments in the contract due when specific goals are met
Take out a construction loan based on your credit, revenue flow, and accounts receivables
Use a business credit card to help cover the cost of materials upfront