Homeowners should always pay deposits through a traceable form of payment, such as credit card. If a legitimate contractor does not accept credit cards, the next best way to pay for home improvement work is with a check made payable to the name that appears on the registration.
Deposits should never be paid in cash or through peer-to-peer apps such as Venmo, PayPal or Cash App. Consumers should avoid working with someone who demands the full payment upfront. A contractor who demands full payment upfront is a red flag.
We recommend breaking up your payments into three parts:
- First payment: The deposit and initial material costs
- Second payment: Halfway through the project
- Third payment: After the project has been completed
Payments should align with the project's progress. Do not make the final payment until you are satisfied with the finished product. All payment details should be clearly outlined in the contract agreed to by both you and the contractor prior to the start of the project. Be sure to get a receipt after each payment.
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