Now we’re in business – contractor’s deposit

Contract signing.jpg
Here we go… for real!

We finally signed the official contract with our General Contractor and, as she said when we shook hands, now we are in business.  A few exciting / interesting things about signing a contract with a GC:

  1. The form itself was very standard.  The contract itself was fairly standard, noting what protection we had and what protection the contractor has if things don’t work out between us.  A veritable pre-nup between you and your GC.
  2. A deposit is standard, but not too much!  One of the bidders for our project asked for 20% upfront, which ruffled the feathers of our architect.  We chose another contractor, who asked for a 10% deposit.  That amount will be deducted from her final bill.
  3. Money is expected quickly.  We will make further payments on the contract on a monthly basis.  These payments will be expected within 5 days of my receipt of the invoice or a hefty interest rate will be charged.  We tried to negotiate on this point and talked at length with our architect about it, but our architect assured us that it is standard and our contractor assured us that she would work with us and the bank to make sure we keep the bank in the loop and have access to the money.

Like any major endeavour, I have read, analysed, and studied the situation, and now I am taking the leap of faith.  But I did have a minor panic moment after our contractor walked off with a $30k cheque.

If you have done renovations, what was your experience like with your contract and deposit?

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