BBB warns homeowners pay max 25%

The Better Business Bureau used the start of the spring home-improvement season to warn homeowners against large upfront payments to contractors. Guidance published and amplified on May 16 said consumers should not pay more than 25% of a project’s total cost before work begins. The advice applies to common seasonal jobs such as kitchen remodels, gutter cleaning, landscaping and roof repair, according to a report by The Cool Down citing BBB comments. BBB has separately warned that home-improvement scams often involve pressure tactics, high upfront fees and contractors who take deposits and do not return. ### Where did the 25% figure come from? May 16 coverage by The Cool Down attributed the 25% threshold to the Better Business Bureau and to comments from Meghan Conradt, identified there as director of foundation with the BBB. The report said BBB advises homeowners to pay no more than 25% of a project’s cost before work starts and to treat demands for a large immediate deposit as a warning sign. (thecooldown.com) Conradt told Scripps News, as quoted in that report, that once a contractor takes a large upfront payment and disappears, “it can be really hard to get that money back.” She said court action is possible but “really long and drawn out,” and that consumers often do not receive restitution. ### Which jobs are covered by the warning? Spring projects named in the May 16 report included kitchen remodels, gutter cleaning, landscaping projects and roof repair. (thecooldown.com) Those are the kinds of jobs homeowners often begin after winter, when deferred maintenance and renovation work starts to move again. BBB’s broader scam alerts describe the same risk pattern across home-improvement work. (thecooldown.com) A February 12, 2025 BBB alert said scammers may offer low prices, claim they are already working in the neighborhood, ask for money to buy materials, then leave a project unfinished or never begin the work. ### What other warning signs did BBB point to? BBB’s February 2025 alert told consumers to watch for cash-only deals, high-pressure sales tactics, high upfront payments and handshake agreements without a written contract. (thecooldown.com) The same alert said bad contractors may resist providing references and that scammers may not wait while a homeowner checks their background. (bbb.org) Conradt also said homeowners should verify documentation before hiring. In comments quoted on May 16, she said consumers should make sure contractors are licensed, carry proof of insurance and have pulled permits when permits are required. She also advised checking references from recent customers instead of relying only on ads or online reviews. ### What can a homeowner do if a contractor takes the money? (bbb.org) BBB’s consumer portal says people who want help resolving a problem with a business can file a complaint online. The site also says people who want to alert others about a possible scam, imposter, fraud or scheme can use BBB Scam Tracker. BBB’s complaint-handling page says complaints are generally forwarded to a business within two business days, and the business is asked to respond within 14 days. (thecooldown.com) The organization says complaints are generally closed within about 30 calendar days, though outcomes vary and mediation or arbitration may depend on the local BBB office. ### What should homeowners keep in writing before work starts? (bbb.org) BBB’s February 2025 warning said consumers should avoid handshake deals, a point that aligns with the May 16 guidance to slow down when a contractor asks for a large deposit. A written agreement can set out the scope of work, payment timing and other project terms before money changes hands. BBB’s site says consumers can choose among filing a complaint, posting a review or reporting a scam, depending on whether they want a resolution or want to warn others. (bbb.org) For homeowners hiring contractors this spring, those tools remain available now through BBB’s complaint portal and Scam Tracker system. (bbb.org 1) (bbb.org 2)