Lets face facts.  If a contractor comes to town to work on your and your neighbors homes, he better come with the cash and lines of credit to be able to finish your project (esp. small projects) without asking for ANY money in advance.  Do your really want a contractor working on your home who does not have the financial strength to do a short term project without your money to work with.

Remember: Many of the outsiders come from area where people are less honest than they are in SD, thus they want to be sure "you will keep your  word." - However once you have given them your "Honest Money", you are stuck and they may go to greener pastures and not return for a year, or ever...  And you have paid part of the bill that you cannot recover, and are bound not to hire another contractor.

*Exception: In some cases where there is a large amount of Special Order materials it may be acceptable to pay a percentage up front.