Payment schedules are one of the major issues in the concrete construction industry for both contractors and clients. From the point of view of a customer, it makes sense to pay after the project is completed. The contractor performs the job, you approve it, and then you provide them with the complete payment.
However, money is required upfront more often than not from the perspective of a contractor. Of course, there’s a reason for this. Today, we are going to talk about why reputable commercial concrete contractors in Atlanta require money upfront.
Why do customers have to pay in advance?
Let us assume that you are planning to remodel your home and have chosen to start by painting the walls. If you are going the DIY route, you will probably have to visit a home improvement shop to purchase paint, tape, and a couple of brushes. After that, you go back to your house and start the job. In this case, you have completed the project after buying the required materials. You can’t start the project without paying the shop first for the tools that you purchased.
Typically, this is the reason why contractors ask for money at the start of the job. It does not matter what type of construction service it is. Materials will always have to be purchased. As a customer, you are providing the contractor with cash to purchase the tools required to finish the job. Also, money is required to ensure that the workers will have pay at the end of the week. This is particularly true if the project is big and will require a couple of weeks to finish. Usually, 50% of the overall cost is the right amount to pay upfront. This is enough to ensure the workers’ pay and purchase most materials.
What will happen if you pay upfront and the contractor doesn’t complete the project?
When it comes to paying a contractor any amount of money before the project starts, this is one of the biggest concerns of customers. Well, trust is what you need here. You will not trust giving the contractor cash before the job even starts if you do not trust him/her to do excellent work.
If you want to gain trust in the company, here are a couple of things you can do:
- Ask for a Breakdown of the Labor and Material Costs
If you want complete transparency, ask the company to provide you with the cost of the labor and the cost of the materials for your project. This will give you an idea of what you are paying for.
- Obtain receipts for both the initial and total cost.
You’ve got to ensure you get an invoice for the complete amount and for the cash you pay at the start. With this, you will have the documentation for reference in the future.
- Look at Ratings and Reviews
You’ve got to ensure you look at online reviews for the firm before choosing a contractor. There are a lot of online websites out there that offer these services.