Consumer Question: Paying 100% Up Front

[Midpack]

We just did a full kitchen remodel, with stock cabinets (we just picked wood tones, accessories, etc.). But the contractor still insisted on measuring before ordering to be sure. And the granite contractor wouldn't proceed until the cabinets were in place, and they could measure for themselves. The contractor told me they had customer they went back and forth with for 2 years before the project actually started, so the OP's 2 months may not be that unusual. We took about 6 weeks finalizing before the work could start.

I may be wrong, but I think that's pretty standard, custom cabinets or not...

 

[Big_Hitter]

I had custom made brookhaven/woodmode in two kitchen remodels and never paid for 100% of the cabinets until they were installed.

 

[pb4uski]

You mean that your contractor provided their own working capital and didn't seek to use you as their bank?

 

[Marita40]

Thanks for all your replies. These are a national brand of custom cabinets ordered through a local distributor who caters mainly to contractors but also individuals. I am doing the remodeling myself, acting as the GC and working mainly with my fabulous handyman. I am simply purchasing the cabinets through this distributor.

The update is I told the designer I've been working with that I balked at the 100%, and she said she'd speak with the owner and "no doubt" he'd allow me either 50-50 (50% up front; 50% at conclusion) or 80-20. I expect to hear back today. Their local competitor, who I also looked into, was 80-20. I could live with that: I just want some type of leverage at the end. Because they work with new build and contractors, the designer stated, the plans for those guys are often so uncertain that the 100% up front is expected. I think I do understand this.

The cabinets take 6-8 weeks to arrive. They are inset, so that feature always takes a bit longer to make since it is fussier to get right. It is a small kitchen; the cabinet bill will be about $12,000. which is actually pretty good for the quality and features we are getting. The project starts on May 31 and I hope we be completed by the end of July at the latest. It is not a gut project but a new hardwood floor is going in which will take some time to install and finish. There's some wall and ceiling work, light fixtures, countertops--this kind of project takes a lot of organizing. But I can't wait to get it going.

 

[Totoro]

Sounds like an arrangement can be made.

Let us know what you agreed with in the end

 

[rayinpenn]

Wouldn't do it... Your instincts are your best friend.
When the cabinets arrive and are uncrated, inspected and given the thumbs up then I'll be happy to pay.

If you absolutely decide to do it - pay with a credit card it will add a level of protection.


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[Taxman59]

100% of the material cost up front, and pay the labor on an as you go basis. This allows the company to get the goods without being out of pocket in case you back out.


Have the day you deserve, and let Karma sort it out.

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[Amethyst]

We have employed many contractors over the past 3 years; none would take a credit card without adding at least 3%, and some wouldn't take one at all. Maybe for some people, the 3% would be worth it knowing the card company would be on your side if you got stiffed.

Amethyst

I think pb4uski's suggestion is good. I would also want to pay by credit card so as to have some protection afterward.

 

[Amethyst]

We are having custom cabinets put into a condo we plan to sell, and were asked to pay $6000 up front and the other $6000 on delivery. Those were the terms and we thought they were fair.

Amethyst

100% of the material cost up front, and pay the labor on an as you go basis. This allows the company to get the goods without being out of pocket in case you back out.


Have the day you deserve, and let Karma sort it out.

Sent from my iPad using Early Retirement Forum

 

[Amethyst]

And that is why you are a successful landlord, and some of the rest of us...aren't.

QUOTE=Senator;1719000]T Installed by me... Less than $1,500 for the entire kitchen, including counter tops.[/QUOTE]

 

[devans0]

As others have said, paying contractor cost of materials is reasonable. There is no incentive for the contractor to do the work, finish the job, not jack you around on schedules and having a torn up kitchen for months, meet code issues or whatever when they have all the money up front. And this assumes they are a legitimate company on solid financial footing. Every scam company would try to do what they propose. There are too many honest companies around. I would get as much product information from them but would not do business with them at the point you are at, even with only half down. Alarms are deafening loud.

 

[youbet]

As others have said, paying contractor cost of materials is reasonable. There is no incentive for the contractor to do the work, finish the job, not jack you around on schedules and having a torn up kitchen for months, meet code issues or whatever when they have all the money up front. And this assumes they are a legitimate company on solid financial footing. Every scam company would try to do what they propose. There are too many honest companies around. I would get as much product information from them but would not do business with them at the point you are at, even with only half down. Alarms are deafening loud.

You may have missed OP's update. OP is the general contractor. The only item being negotiated is the terms of purchase of the cabinets.

 

[littleb]

I would never pay upfront. This company might have the best reviews and a good BBB rating but things happen everyday with companies where they fold or file bankruptcy.

Years ago we needed to get our windows replaced before we put our house on the market and our realtor recommended an individual. He would be replacing about 10 windows and he wanted 50% down before he started the job. There was no way I was going to give him 50% down as an individual who did it on the side (he was also very old which was another story). We sat there in the kitchen and I told him I would not pay upfront. He didn't like it. I didn't budge. He replaced the windows and I paid him after the job was completed.

 

[devans0]

I missed the update.

I am waiting for cabinet pieces to arrive from my kitches demo and reno. Custom cabinets received but all shelves were missing, drawer sliders were bent, bearings are missing, 3 of 6 drawers have damaged faces, one was installed crooked and skewed. This was from a quality brand. After 5 weeks, everything that was screwed up was re-ordered again yesterday.

Terms were 45% down, 45% at mid, and 10% final.

 

[DrRoy]

I have put down 25-50% for cabinets, vanities, etc.

 

[foxfirev5]

I would never pay upfront. This company might have the best reviews and a good BBB rating but things happen everyday with companies where they fold or file bankruptcy.

Years ago we needed to get our windows replaced before we put our house on the market and our realtor recommended an individual. He would be replacing about 10 windows and he wanted 50% down before he started the job. There was no way I was going to give him 50% down as an individual who did it on the side (he was also very old which was another story). We sat there in the kitchen and I told him I would not pay upfront. He didn't like it. I didn't budge. He replaced the windows and I paid him after the job was completed.

Yes. That's exactly how I would handle it. 30 years experience dealing with subs and it's the only way to guarantee results. It's amazing to me that people who would never touch a junk bond will fork over money for home improvements in blissful ignorance.
They will vet the customer and place a lien at the first sign of trouble but it helps you weed out the con men or women.

 

[Bamaman]

I'd be more inclined to pay 50% when they start building the cabinets and the balance upon installation.

Cabinet makers are notorious for not delivering on time, and they often have problems delivering the cabinets as the specifications call for.

When we were building my sister's house, we had serious troubles out of a cabinet maker that about had a nervous breakdown over the job. He was good at what he did, but it was more of a job than he'd ever done previously. He held up the completion 3 months +.