How large of a down payment is typically put down before construction of a new garage? I am close to possibly getting a garage built by Tough Sheds. It will be roughly $60,000. They are asking for 90% down, (I’m not OK with that), or finance it through GreenSky Inc. If I finance it through GreenSky, would I be protected if they don’t finish the job for whatever reason?
Down payment
- Thread starter driver50x
- Start date
nadogail
Well-known member
Our State Law limits contractors to 10% down.
wandrur
ALLIANCE MEMBER
How is 90% down a "down payment"? That's crazy to me. Though I am used to Tough Shed being a purchase first, then build on site process. I'm assuming you would sign a contract that would address the contingencies of job completion, satisfaction/quality, etc.
nadogail
Well-known member
If you give your contractor a big down payment, and then he shows up with a Big Brand New Pickup, you are in big trouble.
iagsxr
Well-known member
They're trying to drive you to their financing arm because there's more money made there than building all the garages in the world.
It would drive me to find someone else to do business with.
It would drive me to find someone else to do business with.
mike93lx
ALLIANCE MEMBER
They'd get 90% from me if they were holding a gun to my head.
I worked in HVAC and we would ask for 30% down, 30% on the day of install, 30% at completion and the last 10% a month after completion. It gives the customer time to decide they are satisfied and need us to come back.
No way I would pay 90%! There is no incentive for them to even show up!
On a large construction project I agree that 10% is a good start and monthly payments as construction progresses.
No way I would pay 90%! There is no incentive for them to even show up!
On a large construction project I agree that 10% is a good start and monthly payments as construction progresses.
southalabama
Well-known member
Everything we’ve build was usually in fourths at various stages agreed upon. Foundation, dried in, etc.
As others have said they pushing you for their preferred Financing.
I’d find someone else.
As others have said they pushing you for their preferred Financing.
I’d find someone else.
I wouldn't expect financing to protect you against a bad contractor. Chances are, you owe the finance company 100% of their money no matter what happens to the build.
At my shop, we (usually) bill the customer for parts when we order them and then bill labor at completion of the job. No car leaves the shop until the bill is paid. I get construction is different but having been screwed by a construction contractor years ago, I don't pay for anything until the materials are sitting in my yard and final payment when I'm done and satisfied. They all get terms at the supply house so they aren't paying up front for materials.
Miss the Pontiacs
Well-known member
I’ve had 2 different garages built in the last few years. No money down but I did know the contractors and they knew me. Gave them partial payment as work and materials were used and when cash was requested.
kbuhagiar
Well-known member
Are you referring to TuffShed:
Storage Sheds San Diego - Tuff Shed Southern California
For storage sheds San Diego residents love, or garages, pool houses and custom structures delivered to your home, contact Tuff Shed Southern California.
www.tuffshed.com
or some off-brand sound-alike company?
I bought a 10 x 12 shed from TuffShed last year and I paid the full amount ($6800) up front, but there's no way I would plop down 90% upfront on a project that large.
Rusted Nut
Well-known member
Hell no! Maybe 10%, balance upon final completion.
Or $1000, whichever is *less*.
@driver50x - You don't have a location in your profile, but check with your state contractor licensing board (website). You may get some guidance there.
Here's a recent bulletin reminding California contractors of their limitations on down payment and progress payments. May give you some ideas on structuring your conversation.
@nadogail - FYI... A few years ago, we discovered that there are a couple of exceptions to the 10% rule. We were going to have a large closet company, that did our original installs 25 years before, do some mods to our closet. The contract specified 50% down and we balked. They ended up not wanting to do the job anyway after they looked at it (I ended up doing it myself - you may have seen some pics here). I filed a complaint with the contractor license board and, after they researched it, advised me that the company was 1 of 2 in the state that had an exception to the 10%/$1000 limit. Blew me away!
Mike65
Well-known member
When we had our metal garage/shop built 2 years ago we dealt with a local builder. We gave him a 10% downpayment, when concrete was done, we gave him another 10%, after the building was put up & the county did final inspection & it passed, we made the final payment. No way would I ever make that large of a downpayment.
I guess if you can get that type deal, that’s OK. It’s not the Norm in regards to building Large structures/homes, but neither is 90% down. A payment structure needs to be addressed prior to signing a contract that benefits both parties, keeps everyone honest and on task.
When the OP started talking about tuff sheds, I was thinking that was what Home Depot sold in there parking lot. 60k? Ouch..
niget2002
Well-known member
As far as I know, most of TuffShed's business is pre-built sheds where you pay up front and they roll up and drop the shed onto your slab/blocks. My assumption is their policy is based on that build model and not a 'build on site' model.
I hope they're willing to work with you. Sounds like you like the build they have planned for you.
I hope they're willing to work with you. Sounds like you like the build they have planned for you.
Viper98912
Well-known member
Yea, this one seems like it kinda depends. 90% is a little absurd, but at the same time, if you're buying a "catalog item", it might be the same as buying any regular item today (where you pay 100% at the time of purchase). Perhaps you can negotiate something like 30% down (to create the order), 60% when ready to ship (they send you a picture that it's done and ready to go on a trailer) and 10% when it's delivered and installed properly on your property.
I can’t help with the down payment, but greensky is legit and easy to work with. Doubt you’d be any more protected however. No way I’d be putting down 90 percent without a bond in my favor.
On a flipside, when we built our house the bank gave us portions of our mortgage money in stages as we finished each stage.
We bought many of the materials and the various contractors as well as suppliers involved got paid when the bank payment came in for their particular stage.
It’s the same company, but they build full size garages as well. On site.