It seems to me that we often are our own worst enemy. The hacks of the world exist because most home(garage)owners are looking for the cheapest price and are willing to roll the dice for a good deal.
How many of us are willing to pay a premium for a properly capitalized firm, with adequate insurance, properly classified employees, etc.
Not saying that a more established firm is a guarantee or that every little guy is a hack but at the end of the day, all the laws and lawyers in the world can't replace an educated consumer. If you want to save a buck and go with the guy working out of a pick up asking for 50% up front, you need to understand the risks.
Hopefully discussions like this on GJ will get people thinking even if it does kind of highjack the thread and doesn't really help the OP much.
The part in bold is key.
However, just because a company appears to have all of the other items, doesn't mean that the customer will get a "good job".
Some companies are looking for first time customers, and don't give a damn about the second time... or even fixing what they messed up the first time.
Some of these flaws can take years to find or make themselves apparent- when equipment fails prematurely, or the building starts to fall apart because shortcuts were taken either on purpose or because the wrong methods were used.
These hacks provide me with work fixing their chit. The homeowners usually think they got a good deal. They think the company did a good job- until things fall apart, or wonder why it isn't working like it should.
Homeowners, generally speaking, do not want to pay for quality upfront.
If it is a construction project or mechanical system, the homeowners are looking at prices and ignoring specifications.
The homeowners are not looking at a system. Not the home as a system.
There are a number of big companies providing chitty workmanship... and not all of it is because the people in the home doing the work don't know what they are doing, but rather the superintendant, foreman, boss or owner is pushing for the next job (and their bonus) before the first one is done. And yes, performance based pay (piecework) contributes to corner cutting.
Many of these outfits pay rather poorly but charge the homeowner an arm and a leg.
As far as deposits go, I always ask for one. The amount depends on the scope of work.
If all/most of the stuff is special order, and I can't return it or don't think it could be used elsewhere, then it is paid for 100% (plus markup and my time)before anything happens. That philosophy will never change for me.
The laws favor the client, not the contractor. Once material is delivered to the site, the homeowner "owns" it and I can't forcibly take it back... so yes, they are paying for it before it arrives at the door if I have to order it and can't take it back.
If it is stock stuff, and the cost of the job is heavy on materials, I'll ask for 30%.
More labor or thinking than materials, I'll ask for 10%.
The client can say no, and then I can also then have my calendar suddenly fill up.
I never force anyone or use pressure tactics.
Deposits also show intent vs shopping, and solidify scheduling.
Short lead time and time sensitive projects make it difficult to get a deposit, so those just go as is, unless there is a lot of money involved. Of course, my definition of "a lot" may be different from yours.
A business depends on cash flow. If the jobs stack up and the contractor is out materials and payroll for a series of jobs without deposits... now what? I certainly don't want to use credit to pay for materials, unless it is paid in full before the interest starts.
I think a lot of it boils down to the relationship between the client and the person(s) doing the work. If both parties trust each other, there is nothing wrong with obtaining a deposit appropriate for the scope of work. If there is no trust, then I don't do the work. Pretty simple, and it works.
