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A: Its not uncommon for contractors to ask for a down payment up front to secure your spot on their schedule or purchase some of the job materials in advance. Asking for more than half of the project cost up front, though, is a big red flag.
General contractors. If youre working on projects valued in excess of $1,000 in Virginia, you need a contracting license. As mentioned, the agency that oversees Virginia contractor licensing is the Department of Professional and Occupational Regulation.
Avoid paying in cash. Contractors cannot ask for a deposit of more than 10 percent of the total cost of the job or $1,000, whichever is less. * (This applies to any home improvement project, including swimming pools.) Stick to your schedule of payments and dont let payments get ahead of the completed work.
18VAC50-22-100. Fees. Fee TypeWhen DueAmount DueClass C Initial Licensewith license application$210Class B Initial Licensewith license application$345Class A Initial Licensewith license application$360Temporary Licensewith license application and applicable initial license fee$504 more rows
A good rule of thumb is an initial deposit of no more than 10% down or $1,000, whichever is less. Unless the job requires custom-made items or special orders, in which case an initial down payment should be no more than 30% of the total value of the contract.
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A subcontractor can be an individual contractor (known as an independent contractor) or a company (known as a general contractor). If youre a contractor and you want to hire a subcontractor, make sure you understand your contractual obligations.
A handyman will need a Virginia contractors license to do work worth more than $1,000. There are three classes of licenses, depending on the monetary value of the projects you plan to work on. Youll need to complete a pre-license education course approved by the board.
In order to become licensed as a Contractor (Class A, Class B, or Class C), applicants must complete eight hours of pre-license education. For Class A and Class B applicants, the pre-license education must be completed by a member of responsible management or the designated employee.
Under Virginia Code Section 54.1-1115, no one may contract for or bid upon the construction, removal, repair, or improvements to or upon real property owned, controlled or leased by another person without a license or the correct type of license.
The exact deposit amount contractors ask for upfront varies and is especially dependent on the size of the project. For relatively small jobs, like a $16,000 bathroom remodel, contractors may ask for a 50% deposit. For large jobs, like a $100,000 full-home renovation, a 10%20% deposit is more typical.

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