A general contractor is in the process of changing their business model and reevaluating their construction deposit policy. Currently, they do remodels below $1M and collect a 20% deposit (after the pre-construction phase) that is credited back over the life of the project based on percentage complete. However, they are starting to win high-end remodel projects that can be anywhere from $3M to $6M. How do others handle construction deposits in this price range?
- Do you collect a percentage of the project as a deposit?
- Do you collect a fixed fee?
- How do you credit back the deposit? Over the life of the project or at the end or some other combination?
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Nicole Landau
Owner
Landau Consulting Solutions
Castle Rock CO
(303) 900-7997
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