Contractors Forms Package - Maine 2025

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Maine doesnt regulate contractors on a state level (except for the trade licenses of electricians and plumbers). As such, it isnt always clear what the penalties would be for not carrying the appropriate license, whether its a trade or business type.
Yes, it is common and often considered normal to pay a contractor a deposit before work begins. This deposit serves several purposes: Secures the Contractors Commitment: It ensures that the contractor will reserve time and resources for your project.
Contractors cant ask for more than 1/3 of the full project price upfront as a deposit or down payment. Any changes to the original contract must also be in writing.
Its not unusual. If you are not comfortable tell them you are willing to do 50% upon delivery of materials, balance upon completion.
Down payment basics Down payments for large projects usually fall within the range of 20% to 40% of the total cost of the project.
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Its common for contractors to request some form of upfront payment, but the amount and reasons can vary. Here are some key points to consider: Deposit: Many reputable contractors ask for a deposit, typically ranging from 10% to 30% of the total project cost. This helps cover initial costs for materials and labor.
A form W-9 is used to collect a contractors tax information. A form 1099 is used to document any payments that a client has made to a contractor, if those payments total more than $600. Both forms are mandatory.
Any home construction contract for more than $3,000 in materials or labor must be in writing and must be signed by both the home construction contractor and the homeowner or lessee. Both the contractor and the homeowner or lessee must receive a copy of the executed contract prior to any work performance.

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