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Construction Project Deposits / Retainers

  • 1.  Construction Project Deposits / Retainers

    Posted 01-31-2022 14:23
    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? 

    1. Do you collect a percentage of the project as a deposit?
    2. Do you collect a fixed fee?
    3. 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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