Is it usual practice for a pool builder to request a deposit upon contract signing before any work is done? After meeting with 4 builders the one we have just about selected asked for a 10% deposit (approx. $10k) upon signing the contract before he begins working on permits and before groundbreaking. Is this a red flag or has this practice become common? Prior threads on related subjects seem to date back a few years. Area is Alpharetta, GA (Atlanta suburbs). Thank you.
Deposit before groundbreaking?
- Thread starter nbrogan
- Start date
-
- Tags
- pool builder issues
- Jul 21, 2013
- 52,865
- Pool Size
- 35000
- Surface
- Plaster
- Chlorine
- Salt Water Generator
- SWG Type
- Pentair Intellichlor IC-60
Any significant contract without some money being paid is not worth the paper it is printed on.
What is the overall payment schedule?
What is the overall payment schedule?
Who is the contractor?
How well have you investigated them?
Pool builder accused of taking $196K from clients without doing work
:quality(70)/d1hfln2sfez66z.cloudfront.net/05-25-2021/t_aaed15c5f4074ef99d665e85cf8d13f5_name_RON_POOL_COMP_mov_new_01_frame_0.jpg)
www.wsbtv.com
www.fox5atlanta.com
www.fox5atlanta.com
How well have you investigated them?
Pool builder accused of taking $196K from clients without doing work
Several metro families say pool builder did not finish work, costing them thousands
But many families in Cobb and Cherokee counties have run into big, costly problems with the same pool builder.
www.wsbtv.com
Thinking about a pandemic pool? Customers say this contractor left them high and dry
Lower interest rates during the pandemic convinced a growing number of Georgians to treat their cooped-up family to a backyard swimming pool.
Clients angry over pool builder problems
A pool company owner who has angered clients from Decatur to North Fulton -- has been arrested. The FOX 5 I-Team's Dana Fowle takes a look at the growing number of clients filing complaints with police over Aqua Blue Pools.
Customers pay tens of thousands of dollars for unfinished swimming pools
The pool company’s owner says he didn’t intend to take anyone’s money and claims things got out of control
www.atlantanewsfirst.com
Cobb County family says they were scammed out of nearly $50,000 by pool builder
The family hired a company last year to build it, but after a $45,000 down payment the man they say they hired filed for bankruptcy about two weeks after the check cleared.
Aqua Zone Pools and Spas LLC
It looks like the business was started in December 16 2022, which is about 1.5 years.
That is not a long time.
I cannot find any contractor's license for the company.
You can contact the licensing board to ask what licenses are required for a pool builder.
sos.ga.gov
consumered.georgia.gov
Contact local trade organizations, such as the Home Builders Association of Georgia, to find contractors in your area.
consumered.georgia.gov
It looks like the business was started in December 16 2022, which is about 1.5 years.
That is not a long time.
I cannot find any contractor's license for the company.
You can contact the licensing board to ask what licenses are required for a pool builder.
State Licensing Board for Residential and General Contractors | Georgia Secretary of State
Residential and General Contractors who want to check their application status, find out how to register for the licensing exams and when, or have other licensing questions should check below for more information.
How can I verify that a contractor is licensed and insured?
Dear Consumer Ed: How can I verify online that a home improvement contractor in Georgia is licensed and insured?
Contact local trade organizations, such as the Home Builders Association of Georgia, to find contractors in your area.
Contractor accepted deposit but never did work
Dear Consumer Ed: I paid a $15,000 deposit to have a swimming pool installed. I have receipts and a written contract. The contractor was supposed to start three weeks ago. The permit has not been applied for, and the contractor will not respond to my messages. I have since discovered that he is...
The Profile on Angi says 23 years, but the license says 1.5 years, so that is odd.
The reviews seem good, but maybe fake.
You can verify things like Liability Insurance and Worker's Compensation Insurance.
www.aquazonepoolsandspasga.com
Domain Name: AQUAZONEPOOLSANDSPASGA.COM
Creation Date: 2023-10-05T12:38:16Z
The website was made less than 1 year ago.
www.yelp.com
www.aquazonepoolsandspas.com
Domain Name: aquazonepoolsandspas.com
Creation Date: 2023-01-30T20:41:06Z
www.facebook.com
www.chamberofcommerce.com
Lucas Ribeiro
The reviews seem good, but maybe fake.
You can verify things like Liability Insurance and Worker's Compensation Insurance.
Pool Construction in Kennesaw, GA | Aqua Zone Pools and Spas LLC
For professional pool construction in Kennesaw, GA, choose Aqua Zone Pools and Spas. Click here to contact us and turn your backyard into a stunning oasis.
www.aquazonepoolsandspasga.com
Domain Name: AQUAZONEPOOLSANDSPASGA.COM
Creation Date: 2023-10-05T12:38:16Z
The website was made less than 1 year ago.
Aqua Zone Pools and Spas - Kennesaw, GA
Specialties: Looking to transform your backyard into a stunning oasis? Look no further than Aqua Zone Pools and Spas. As the premier experts in pool construction in Kennesaw, GA, we pride ourselves on being owner operated, with a team of dedicated in-house workers. With our expertise and...
www.yelp.com
Aquazone Pools and Spas | Fiberglass Pools
At Aquazone Pools and Spas, our focus is on providing our clients with an stress-free and enjoyable experience from start to finish. From the moment you contact us, we work closely to understand your needs and preferences and develop a customized plan that fits your unique vision and budget...
www.aquazonepoolsandspas.com
Domain Name: aquazonepoolsandspas.com
Creation Date: 2023-01-30T20:41:06Z
Aqua Zone Pools and Spas LLC | Kennesaw GA
Aqua Zone Pools and Spas LLC, Kennesaw, Georgia. 53 likes · 3 talking about this. We design and install inground swimming pools and spas.
www.facebook.com
Aqua Zone Pools and Spas LLC in Kennesaw, GA 30144 - (404) 9...
Aqua Zone Pools and Spas LLC located at 4227 Galilee Drive, Kennesaw, GA 30144 - reviews, ratings, hours, phone number, directions, and more.
www.chamberofcommerce.com
Lucas Ribeiro
Thank you very much. I need to spend more time reviewing the contractors. I thought the 5 star ratings on Angi seemed too good to be true and coupled with the deposit request, I am concerned. Appreciate the insight.
SLI Shotcrete and Stone Leaders International, LLC. also registered at the same address.
slishotcrete.com
(404) 569-8680
SLI Shotcrete
4227 Galilee Dr., N.E. Kennesaw, GA 30144
SLI Shotcrete
4227 Galilee Dr., N.E. Kennesaw, GA 30144
Lucas Ribeiro
Owner
Joao Ribeiro
(404) 918-9896
Domain Name: SLISHOTCRETE.COM
Creation Date: 2008-05-12T13:56:44Z
Your Friends in the Pool Business.
We'll get the job done right! Pool Contracting and Shotcrete Services
slishotcrete.com
(404) 569-8680
SLI Shotcrete
4227 Galilee Dr., N.E. Kennesaw, GA 30144
SLI Shotcrete
4227 Galilee Dr., N.E. Kennesaw, GA 30144
Lucas Ribeiro
Owner
Joao Ribeiro
(404) 918-9896
Domain Name: SLISHOTCRETE.COM
Creation Date: 2008-05-12T13:56:44Z
zero-degrees
Member
In 2021 when we shopped we were still fighting some of the COVID Pool buying craziness sadly.
We sat down with 5 large reputable companies in our market, I specifically did NOT sit down with any smaller companies or "contractors" because of the horror stories you hear about and see. So many "Contractors" got into the pool business to make a quick buck during the low interest COVID craziness.
All the companies we met with had specific payment/draw schedules outlined, and all required an upfront deposit of 3-10%.
The next significant payment was due at ground breaking with all equipment onsite which was around 40 - 60% depending on company.
The next payment was at water fill which was 20 - 30% depending on company
Final Balance was due at completion of pool school
Because we were signing a contract a year out there was clearly some more risk (signing May 2021 for April/May 2022 install) which is why we went with large brick and mortar reputable builders in our market.
What my terms ended up being
I paid a 20% contract signing payment - this locked all my pricing to the 2021 rates, where all other options had varied pricing to current rates at time of install, so we paid 20k down a year early - I needed to TRUST my pool builder, and I did.
I then paid 40% more at the close of day 1 - completion of digging and site prep, day before shell delivery (equipment was all delivered on site already (heater, pumps, autocover, etc - so assets were here)
I then paid 30% more at the close water install and pump running.
I then paid remaining 10% about a week after pool school when the entire project was "complete"
Make sure you are comfortable and trust your pool builder based on market intelligence - not because he's a "nice guy".
Also, the "cheapest/best deal" or "I can install you sooner than anyone else" should be RED flags!
The company should be able to front the cost of your project, the draw schedule to align to cover there costs with the "profits" being earned mid draw/payment schedule.
We had a neighbor a few doors down get fleeced during the 2021/2022 boom because she was in a hurry and gullible. She got a HELOC, talked to builders, but didn't like the wait period. So she found a builder/contractor that said he could start in 2 months (first red flag to me), she got a contract and build plans, paid a deposit, then he asked for his next draw EARLIER than outlined in the contract (next red flag to me) and she paid it, then he set some equipment and dug the hole, and asked for his final payment before equipment delivery (another red flag), then he disappeared.... She spent $70k and got a sand filter, pump, basic plumbing, and a BIG Hole in her back yard.... She wont a lawsuit against the builder for $170k and she'll never see a dime because he was a fly by night LLC... She has since simply filled the hole in and moved on with life.
We sat down with 5 large reputable companies in our market, I specifically did NOT sit down with any smaller companies or "contractors" because of the horror stories you hear about and see. So many "Contractors" got into the pool business to make a quick buck during the low interest COVID craziness.
All the companies we met with had specific payment/draw schedules outlined, and all required an upfront deposit of 3-10%.
The next significant payment was due at ground breaking with all equipment onsite which was around 40 - 60% depending on company.
The next payment was at water fill which was 20 - 30% depending on company
Final Balance was due at completion of pool school
Because we were signing a contract a year out there was clearly some more risk (signing May 2021 for April/May 2022 install) which is why we went with large brick and mortar reputable builders in our market.
What my terms ended up being
I paid a 20% contract signing payment - this locked all my pricing to the 2021 rates, where all other options had varied pricing to current rates at time of install, so we paid 20k down a year early - I needed to TRUST my pool builder, and I did.
I then paid 40% more at the close of day 1 - completion of digging and site prep, day before shell delivery (equipment was all delivered on site already (heater, pumps, autocover, etc - so assets were here)
I then paid 30% more at the close water install and pump running.
I then paid remaining 10% about a week after pool school when the entire project was "complete"
Make sure you are comfortable and trust your pool builder based on market intelligence - not because he's a "nice guy".
Also, the "cheapest/best deal" or "I can install you sooner than anyone else" should be RED flags!
The company should be able to front the cost of your project, the draw schedule to align to cover there costs with the "profits" being earned mid draw/payment schedule.
We had a neighbor a few doors down get fleeced during the 2021/2022 boom because she was in a hurry and gullible. She got a HELOC, talked to builders, but didn't like the wait period. So she found a builder/contractor that said he could start in 2 months (first red flag to me), she got a contract and build plans, paid a deposit, then he asked for his next draw EARLIER than outlined in the contract (next red flag to me) and she paid it, then he set some equipment and dug the hole, and asked for his final payment before equipment delivery (another red flag), then he disappeared.... She spent $70k and got a sand filter, pump, basic plumbing, and a BIG Hole in her back yard.... She wont a lawsuit against the builder for $170k and she'll never see a dime because he was a fly by night LLC... She has since simply filled the hole in and moved on with life.
It’s important to remember that trust goes both ways.
Every person who owns a small business has had customers who do not pay what they owe.
Every small business has late payers and no payers.
A business takes just as much risk as a customer.
A business has to spend a lot of money in materials, labor and other costs to do a job and they have very little recourse if the customer does not pay.
The court system does not work efficiently and is virtually never worthwhile.
Liens can be placed, but they don’t get you paid.
Every person who owns a small business has had customers who do not pay what they owe.
Every small business has late payers and no payers.
A business takes just as much risk as a customer.
A business has to spend a lot of money in materials, labor and other costs to do a job and they have very little recourse if the customer does not pay.
The court system does not work efficiently and is virtually never worthwhile.
Liens can be placed, but they don’t get you paid.