Contractor wants a large advance: what should you check and when seek legal help?

1. Find the original payment arrangement

Compare quotation, confirmation and terms. When did they require payment: acceptance, ordering materials, start, a specific stage or completion? Preserve messages supposedly changing that arrangement later. An invoice suddenly giving a shorter deadline does not establish what the parties originally agreed.

ACM ConsuWijzer explains that advance payment is compulsory only when agreed. If requested only after contracting, you do not simply have to accept a new advance arrangement. Describe precisely whether the contractor seeks performance of an existing agreement or tries to add a new condition.

2. Do not apply the fifty-percent rule to every renovation

ACM distinguishes products and services. It gives no general maximum advance for services; parties agree it. Consumer-sale protection around compulsory prepayment is therefore not a general rule allowing every contractor at most half the renovation price. A construction assignment may also combine supplies and work.

Where uncertain, determine the type of contract and items requiring assessment. Record separately what is bought and performed. Include who supplies materials and your contracting party. Separate window frames can raise different questions from an entire renovation including installation. An invoice heading does not automatically determine legal classification.

A special regime also applies to a private client commissioning construction of a home. Article 7:767 BW, within the section defined by article 7:765, requires compulsory payments roughly to match construction progress or the value of goods transferred to the client. Relying on general service rules is insufficient there. Saying materials were ordered does not independently prove value was already transferred to you. Have new-build instalments checked separately against this rule.

The provision does allow up to ten percent of the contract sum to be deposited with a notary, or replacement security provided, to secure your performance. This differs from an ordinary ten-percent payment to the contractor and from BouwGarant advice below. Article 7:767 treats excess payment as undue. Include material ownership transfer, deposit papers and actual progress when seeking housing-construction advice.

3. Distinguish industry advice from enforceable agreement

BouwGarant recommends a limited payment around the start and a progress-linked schedule. That is risk-limiting advice, not a statutory maximum for all contractors. Also check additional agreements in specific terms or a guarantee scheme. Always record where a cited percentage comes from.

Before signing, ask why the amount is needed and what performance corresponds. Material, ordering and execution details make discussion concrete. A better schedule may use verifiable stages. Record how parties establish a stage is reached; a date alone does not explain whether work has progressed enough.

4. Check security before transferring money

ACM ConsuWijzer warns that prepayment creates bankruptcy risk and advises checking for an advance-payment guarantee. Ask for the actual scheme and conditions for your assignment. A logo or membership does not independently answer whether your specific advance is refunded on failure.

Keep evidence of the security arranged and ask what amounts, events and period it covers. Note any applications or notifications required from you. Put doubts directly to the provider. Also assess reserved-material promises: saying money is used for materials does not prove you can claim those materials when problems arise.

5. Respond specifically to an unexpected mid-project advance

A contractor may say materials cost more or it cannot continue without money. Request written reasons and compare the contract. Distinguish earlier payment, a total-price increase and payment for additionally instructed work. These different requests may involve different arrangements and assessments.

Tell your adviser about announced stoppage and present progress. Photograph outstanding work and list it. Ask about the response and whether discussing an amended schedule is wise. Do not assume you can refuse every remaining instalment, but do not treat pressure to transfer immediately as proof that the amount is due either.

6. No performance or bankruptcy changes the question

If paid without performance, record payment evidence, start agreement and responses. The next question concerns performance, refund and possibly ending the agreement. Match measures to the specific failure and required steps. Asking an advance then experiencing delay does not itself prove fraud.

For bankruptcy, first check the relevant guarantee and contact the right handler. BouwGarant warns under its own scheme that independently engaging a replacement may affect rights. Without applicable security, ACM mentions a claim to the bankruptcy trustee as a possible route, without guaranteeing repayment. Seek advice before contracting another provider or paying large sums again.

7. Fictional example: extension and another material advance

Suppose a consumer agrees extension instalments at start, roof closure and completion. After the first payment, the contractor asks for another large sum to order materials. The roof is not closed yet. The client wants to know whether the invoice must be paid. This example is fictional and decides no real contract.

Preparation includes the original schedule, new invoice and photographs of present progress. Keep the ordering explanation too. Assess whether this is a due instalment or a change proposal. A general advance-payment percentage does not resolve that actual distinction.

8. Checklist for advance-payment advice

On first contact, state what is already paid, what is requested now and the immediate threat. Ask a construction lawyer first to assess payment basis and risks. Agree whether the initial engagement checks the contract, responds to the invoice or advises on recovery and further steps.

• Quotation, confirmation, terms and all later payment arrangements.
• Paid-amount overview with bank evidence and invoices.
• Progress, planning and stated reason for the advance.
• Guarantee certificate or other security with applicable terms.
• Messages about stoppage, non-performance or bankruptcy.