Paying deposit before builder starts working??

Caremore

phill99 wrote: »

And your point is what exactly?

Have you even read the whole lot!

My point being builders ask for money up front because why should compaines fork out ££££s on the likley event the client goes bust or does not pay.
My other point being if you are unsure of your builder then sack him/her and find another.

jkpd

sorry caremore but disagree,im a contractor,have accounts with 60day terms and good cashflow, currently on a £200k new build, would you expect a 30k depoist? what mug would pay that,taking risk is all part of buisness, if you cant trust your customers then how can you expect them to trust you! depoist is not the norm in building.

Brenster

I can only echo what CKnocker says above, I am a QS and also work privately for clients (home owners) and Contractors. I would always advise homeowners against upfront payment, and with my contractor hat on, would never ask for an upfront payment. Any reputable contractor should have the cashflow to fund a project, 1 month, otherwise you have to ask yourself, should they be doing it !

Brenster

Just to add,

The whole world works in arrears.......I work for a month and get paid at the end. I spend on my credit card and pay at the end of the month. I have borrowed my mortgage and will pay it off over 25 years. My employer provides a service and invoices at the end of the month. I go for a meal, eat it and pay at the end.

The only thing I can think of that isnt paid in arrears is car insurance !

Why should this builder have it any different !

alina_laura

Hi, I have had my house rewired about 1 month ago and the electrician asked me for a deposit before he stared the work. It is absolutely fine for them to ask you for a small deposit before, as an insurance. However, if you have doubts, you could ask him for an agreement contract that you can both sign and if he is a professional worker it will be no problem and he will accept to sign the contract.

vax2002

You should always credit check any company and its directors before starting anything.

phill99

vax2002 wrote: »

You should always credit check any company and its directors before starting anything.

This assumes that every contractor runs a limited company. Most tradesmen work as self employed and therfore you can't check their credit or their companies.

However, as a contractor, for work over £2k, I expect a deposit. Amount of jobs lost through asking for a deposit: zero.

There is an assumption that all tradesman and contractors have massive positive cash flow. Bullsh"t. And 'if they are reputable, they won't ask for money up front'. More bullsh"t. We are still in very difficult times and there is no way I am going to fork out hundreds of pounds on goods for a customer for them to do a dirty on me. This has happened before and I was stung for £3k because I though I could trust the customer, but I was evidently wrong.

Its bizarre that people go to buy a new car and pay a deposit, buy furniture and have to pay all up front, buy goods from a whole range of retailers and pay for them before the goods are received. People are happy to do all this. So why should I do supply and fit on bathroom suite, shell out for a bathroom suite, fit it and then only get paid when it all installed?

jkpd

Brenster got it spot on! asking for a deposit just isnt the done thing,any buisness should have cashflow,probaly a reflection of our times, a lot of people running buisness are just funding a lifestyle and leaving nothing in reserve, not good!

phill99

jkpd wrote: »

Brenster got it spot on! asking for a deposit just isnt the done thing,any buisness should have cashflow,probaly a reflection of our times, a lot of people running buisness are just funding a lifestyle and leaving nothing in reserve, not good!

What absolute !!!!!!!!. The world does not work in arrears. How come B & Q won't install your kitchen or bathroom until you have paid for it? How come DFS won't deliver your suite until it has been pfully paid for? How come all window companies expect 50% upfront? These companies are huge and have massive cash reserves so should be able to 'fund' peoples purchases. But people are happy to shell out all of this money with no guarantee that they are ever going to get any of their goods.

Get real.

jkpd

Think you find most people buying from dfs use intrest free credit over a few years same for b&q etc,I dont know any contractors who ask for a deposit,not very professional as far as most people are concerned, as for getting stung thats all part of running a buisness if you cant handle that then you should consider doing something else,I dont need to get real, but may I suggest you enroll for a course on "how to run a buisness" you would probaly benifet, and i mean that in a nice way!