Paying builders (merged threads)

maxiscot

We are getting our bathroom and kitchen refurbed. Some builders who have quoted want a 20% deposit to book the slot, 50% on commencement and the rest on practical completion ex a paltry amount for "snags". What is everyone's thoughts on how much you should pay up front and how much you should withhold for snags?

Rhino666

I would only pay up front for materials and only then if they were delivered onsite - most good builders should have good enough cashflow to cover all costs until final payment is required. Stage payments may be acceptable on a large, expensive project if the work has been completed to budget and your satisfaction. I would not employ any builder who is asking for money at the level you are mentioning - 70% before materials arrive and they have started work - asking for trouble !!
Perhaps I am out of touch but paying builders, even reputable ones before they have done any work does not sound like a good idea

maxiscot

Thanks Rhino - that is exactly what I was thinking. I have been working on this refurb for ages and there are some real charlatans out there. If the work really didn't need to be done I think I would give up !

moneysavingplumber

I can understand why a builder would want a deposit to book a slot, there is nothing worse than someone cancelling a large job a week before commencement was due, it's happened to me and it's not funny. However, I agree that the amounts seem excessive and that there needs to be an element of shared risk between you and the contractor for there to be good faith for the contract to progress. I usually take materials money on the day of commencement of major works, but I agree to have the materials delivered to site on that day.

If the builder insists on a deposit I would certainly negotiate a much smaller proportion, more like 5% and subject to contract, and that would similarly invite you to negotiate a penalty clause should they mess you about. Stage payments need to be agreed way in advance and both parties need to be happy with them or there will be trouble ahead..

maxiscot

Thanks moneysavingplumber - the refurb is for labour only and misc materials - he has quoted me ex VAT but I asked and he said we "could talk about VAT" - and there is no VAT number on the quote nor on his site - I think I am smelling something bad!!

moneysavingplumber

Talk about VAT? Sounds very iffy, I'd steer clear.

Rhino666

I think moneysavingplumber has a good point.......

I would be happy to lodge a 20% of job fee with an independent third party, if the tradesman I was proposing using did the same.
If I cancelled the job or otherwise compromised the tradesman's ability to complete the job I would agree to forfeit the money. If the tradesman delayed his agreed start date/time or failed to work continuously to get the job finish on time he would forfeit his 20%.

I wonder whether tradesmen or their customers would benefit most from compensation if this arrangement were adopted :-)

Rebob

I usually pay for material as and when needed. even collect lots as this means that you are not paying them to go to the merchants.

I have a good builder who's charges are fair if I pay cash.

maxiscot

Thanks guys - I am starting to feel a little out of my depth - what should I be looking for re stage payments, penalty clauses, acceptable levels of deposits etc. Hope you can help

Al_Mac

Our builder, admit we know him, doesn't charge until the job is done.

Our carpenter man, we pay 10% up front, for materials, which I think seems fair.

Decorator, after completion.

Benefit of reliable people.

I would say I'm now of the opinion, bathroom people!!!!, 10% up front is fine, but keeping back 10% at then end, for a month, just to ensure everything is OK, would be a good idea. Have to agree it up front.

:beer:

ceebee_2

I'm in the process of sorting out payments with my builder, prior to them starting in approx. 6 weeks. I've agreed 20% at start and then 20% on after defined stages, particularly tied in with building regulations inspections.
You certainly need to know that your builder has provided all necessary certification (building regs.,gas, electric, double-glazing, etc.) before paying final account.
Also, 'extras' are bound to crop up. Get an estimate, in writing, before agreeing to any extra work.
Final suggestion do NOT pay up front, i.e. well in advance of start. If your builder insists on payment in advance, get another builder!!!!!!!!!!!!!!!!!