Tried to get a Net 30 on a bathroom reno once—didn’t fly. The guy looked at me like I had two heads. Ended up doing 40% up front, which still made me nervous, but at least I wasn’t out the whole amount if things went south. Around here, most folks want some skin in the game before they even show up. I get it, but man, wish there was more wiggle room.
That’s interesting, because I’ve actually had a few contractors—especially after big storms—who were fine with Net 30 or even Net 15 terms, but it really depended on the scope and how busy they were. I get why most want money up front for something like a bathroom reno, though. Materials aren’t cheap, and if they’re juggling a bunch of jobs, they’re not going to risk buying tile or fixtures out of pocket for someone they barely know.
But here’s the thing: after a tornado ripped through our area last spring, I saw a lot of folks get burned by putting down huge deposits with “storm chasers” who disappeared. That’s made me pretty cautious about upfront payments. For bigger jobs (like roof replacements), insurance companies around here sometimes pay the contractor directly after work is done, which kind of forces a Net 30 situation by default. It seems to work out okay—contractors don’t love waiting for the check, but at least there’s less risk on both sides.
I’m curious—do you think the size of the job makes a difference? Bathroom renos are usually smaller than, say, a full roof replacement or flood remediation. Maybe that’s why some trades are more open to flexible terms than others. Or is it just local culture? Around here, after any major weather event, everyone’s super nervous about scams and wants everything documented and paid through escrow if possible.
Also, have you ever tried using a third-party payment service that holds funds until milestones are hit? I know it adds fees and paperwork, but it might ease some of that anxiety about losing your deposit if things go sideways. Not saying it’s perfect—just wondering if anyone else has found that to be a decent middle ground.
It’s definitely not one-size-fits-all... sometimes it feels like you have to negotiate every single job from scratch.
- Totally get the “storm chaser” worry. Seen too many folks burned after big hail storms—money gone, no roof, just headaches.
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That’s pretty much how it goes for us on insurance jobs. Not ideal waiting for checks, but at least everyone’s protected.“insurance companies around here sometimes pay the contractor directly after work is done, which kind of forces a Net 30 situation by default.”
- Size matters. Small repairs? I’ll eat the cost and bill later if I know you. Full tear-off and replace? Gotta have something up front—materials alone can be thousands.
- Third-party escrow is fine in theory, but honestly, most homeowners don’t want to mess with extra fees or paperwork unless they’ve been burned before.
- Around here (Midwest), it’s all about trust and reputation. If you’re new in town or chasing storms, folks want everything documented six ways from Sunday... can’t blame them.
I’ve been through this recently and honestly, both options have their headaches. For my roof, the insurance company paid the contractor directly after the job, which meant waiting on their timeline—
—and I had to keep calling to make sure everyone was paid. If I had to do it again, for big jobs, I’d rather pay a deposit for materials and then the rest after, just to keep things moving. Small repairs, I’m fine with Net 30 if it’s a local crew I trust. It’s just less stress knowing the materials are covered up front.“insurance companies around here sometimes pay the contractor directly after work is done, which kind of forces a Net 30 situation by default.”
That’s a fair point about deposits for materials—material costs can be a huge upfront hit, especially with prices jumping around. I’ve seen insurance payouts drag on for weeks, even months, and it puts everyone in a bind. Out of curiosity, have you ever run into issues where a contractor asked for too much up front? Sometimes I see folks get burned that way...