“Mike Holmes’ comment about no good contractor needing more than a 10 per cent deposit hurts our industry.”Financials
Dave Anderchek, JABA Construction, Saskatoon, says that, with totally inaccurate comments like this in the national press, it's "time for Mr. Holmes to leave" our industry.
Last week we made note of a recent article in the National Post by Mike Holmes, who said that no good contractor needs more than a ten per cent deposit when starting a job. We thought that was highly misleading information, even though Holmes DID say, in his piece, that there was an exception when the demolition phase of a job exposes some previously unknown conditions. But he mentioned NO other exceptions to this iron-clad rule. We all know what influence Mike Holmes has among the general public. We asked for your contractor responses. Here’s one from one of the best contractors in Canada, Dave Anderchek, JABA Construction, Saskatoon.
“I usually don’t say too many things in respect to our industry but I feel that an individual like Mr. Holmes should maybe listen to contractors that actually make a living in the renovation industry. He has made money but not from being a contractor.
As we all know good projects and bad projects of any kind start with trust from both sides. After that is when (trouble) happens.
When solidifying a contract, if you are running your company properly, it means that both parties are held accountable with a binding agreement. This is where most contractors fail. The deposit means business and if additional deposits are required for purchase of specialty ordered products it should also be outlined in that section of your contract.
What Mr. Holmes fails to recognize is that comments like “no more than 10 per cent deposit for contractors” hurt the industry as far as the good contractors to perform what they are good at.
The contract is the starting point if any homeowner or contractor is legit and (willing to) abide by the promises they made. All of the problems originate after the signing if they are not.
I have been a business owner in the renovation /construction industry for 25 years in Saskatoon and I think it is time for Mr. Holmes to keep to himself and move on with they money he has made. Because he is damaging to good contractors with his opinions when he has never been a contractor in the real world.
My company contracts are approx. eight pages long and outline everything as far as protection for homeowners. A good contractor will tailor his contracts, as well as deposits, as he sees fit. A good contractor will have standards as to the amount of deposit required based on the size of the project. We would ask for a 10 per cent deposit, as outlined by Mr. Holmes, if the contract is over $350k.
Time for Mr. Holmes to leave.”