Best Practice Advice for paying deposits/money up front to builders

boonkoh

I'm starting a circa £30k renovation job, and all 4 builders that I have asked to come quote have asked for upfront deposit plus staged payments plus an amount held on retention. It has varied from 25% up front, staged every fortnight, but 20% held back at the end for 14 days for snagging. Then there was one with 20% up front, staged every week, and 5% held back.

I think in this case of upfront payments, you need to get a solid paper contract for the works signed. And look to see if the builder is a member of the FMB or NRWB, is registered with company house as a business, has been trading for some time, and also purchase their last annual reports etc (can easily get for £4).

Above all, trust your instincts and gut feeling about the builder.

baldelectrician

On larger jobs I take a deposit, then my wholesaler bills don't get scary as I pay them weekly

I have a credit / debit card machine and this helps. Clients can also pay the deposit by credit card (gives extra protection, but adds 2.8% in bank charges)

misgrace

the_r_sole wrote: »

is the money up front for materials? you would normally expect to have to put something up front to get the job kicked off, if they want to get paid in installments that's fine, just make sure the last payment is held back until everything is finished to your satisfaction

are the jobs you've seen from friends/neighbours?

Some will ask you for money up front for materials, and pay installments every weeks, but only pay if you see the work is progressing.
Keep X amount back till they finish the job, check, as there might be a snagging list, so its practice to hold back the balance till the snagging is complete and of course your happy with the job.

kmmr

One other suggestion for checking builders out. If they do give you a mobile then call them from a 'blocked' landline. I note that poor builders will only accept calls from numbers they know (and perhaps new numbers) but not from blocked numbers as it's usually irate customers trying to get in touch!

Canucklehead

kmmr wrote: »

One other suggestion for checking builders out. If they do give you a mobile then call them from a 'blocked' landline. I note that poor builders will only accept calls from numbers they know (and perhaps new numbers) but not from blocked numbers as it's usually irate customers trying to get in touch!

The OH doesn't answer 'Unknown' numbers for one simple reason...they tend to be from call centres, various 'agencies' promising £££££ for subscribing to their gas/plumbing/fill-in the-blank services or mobile phone providers. A customer's number on the screen gets answered.;)

Canucklehead

DVardysShadow

kmmr wrote: »

One other suggestion for checking builders out. If they do give you a mobile then call them from a 'blocked' landline. I note that poor builders will only accept calls from numbers they know (and perhaps new numbers) but not from blocked numbers as it's usually irate customers trying to get in touch!

As a matter of policy, I don't deal with tradesmen who are mobile phone only.

kmmr

DVardysShadow wrote: »

As a matter of policy, I don't deal with tradesmen who are mobile phone only.

With the wisdom of hindsight I won't either from here on! Mine certainly won't answer the mobile for risk of it being people he doesn't want to hear from anymore. When I look back I remember him deliberately not answering calls when he didn't want to to speak to who it was, or when it was blocked.

baldelectrician

Canucklehead wrote: »

The OH doesn't answer 'Unknown' numbers for one simple reason...they tend to be from call centres, various 'agencies' promising £££££ for subscribing to their gas/plumbing/fill-in the-blank services or mobile phone providers. A customer's number on the screen gets answered.;)

Canucklehead

I agree.

I have anonmyous call blocking on my mobile. I sometimes have it switched off, but you get spates with lots and lots

Anonmyous calls go to voicemail and I return the call later.
I thought I would lose work, but genuine customers leave a message and I call back.
I am fortunate to rely on mostly word of mouth and repeat business

markdavey

boonkoh wrote: »

I'm starting a circa £30k renovation job, and all 4 builders that I have asked to come quote have asked for upfront deposit plus staged payments plus an amount held on retention. It has varied from 25% up front, staged every fortnight, but 20% held back at the end for 14 days for snagging. Then there was one with 20% up front, staged every week, and 5% held back.

I think in this case of upfront payments, you need to get a solid paper contract for the works signed. And look to see if the builder is a member of the FMB or NRWB, is registered with company house as a business, has been trading for some time, and also purchase their last annual reports etc (can easily get for £4).

Above all, trust your instincts and gut feeling about the builder.

I have just completed a £35k extension and at no point did I pay any money up front. I was presented with a payment schedule at time of quote which I found was fair (% @ dpc, % @ roofed in, % @ Plastered, rest on completion). On a job like this any reputable builder should be able to 'get out of the ground' before they need a payment.

diable

When I did my bathroom I had to force the money on to my builder, I just hated the fact I had £5k at my place as I would rather he lose it then me.......