Deposit for materials

Riq

Just bought a house so all this is new to me, got some workmen coming in the house soon and they requested a deposit of around 20% for materials etc.

Does this sound normal.

Makes sense but just want to be completely sure!

Meepster

Sounds perfectly normal to me

foxymum1977_2

i watched one of those 'conmen builder' type shows the other morning and the expert advised never pay anything up front as most builders have accounts with builders merchants and the like, i maybe wrong but we have never paid anything upfront when we've had work done, although we've never had 'major' work done.

keystone

foxymum1977 wrote: »

i watched one of those 'conmen builder' type shows the other morning and the expert advised never pay anything up front as most builders have accounts with builders merchants and the like, i maybe wrong but we have never paid anything upfront when we've had work done, although we've never had 'major' work done.

As usual the "expert" is a talking head who doesn't understand the ins and outs of business for one tiny solitary microsecond. He/she gets their (grossly overinflated) salary from the TV company whatever advice (good or bad) they give out. When is it going to occur to people that these progs are as much about ratings as anything else?

The reality is that there are just as many cowboy customers out there as there are cowboy contractors. Any relationship like this has to be founded on trust. No I am NOT suggesting that the OP is untrustworthy for one minute but the contractor doesn't know that and he needs as much confidence that he will actually get paid as the customer needs to know the work will get done to spec and budget.

These programmes also forget that irrespective of accounts more often than not many suppliers levy a 10-15% restocking charge for gear not wanted and returned. That enables them to keep their overheads down and prices lower. So he could be way out of pocket if the job doesn't go ahead or he doesn't get paid.

A 20% downpayment with further stage payments to agreed and measurable milestones of achievement is quite fair. Write it into the contract. Simples.

Why should the builder have to act as the customers bank/credit facility anyway?

Cheers

Hello123_2

Sounds fine to me, can't really blame them. If you're worried speak to them direct!

k3v1n123

I always ask for deposits on jobs i cant afford to pay out for mats on every job i dont like having accounts all my bills are paid for in cash. Paying this way to builders merchants you also get better discounts and can then pass it onto the customer. Plus if its a reputable company and your getting a guarantee you should be covered by there insurance backed guarantee for deposits.

phill99

foxymum1977 wrote: »

i watched one of those 'conmen builder' type shows the other morning and the expert advised never pay anything up front as most builders have accounts with builders merchants and the like.

This is absolute rubbish. I have numerous accounts, but won't buy goods on them for new customers. I don't know who the new customer is and whether they are good for credit. So I ask for a deposit, typically 20 - 25%. I haven't lost any work as a result. Existing cistomers is a different thing - I have a relationship with them and know whether they will pay or not.

Unfortunately the media only focus on conmen builders and not conmen customers and believe me there are more dodgy customers than builders.

What Keystone is saying is correct.

vaio

As a supplier we don’t ask for deposits (but we also only do commercial/industrial stuff and in the past when we did do domestic it was always under the supervision of an architect).

As a domestic consumer I wouldn't pay any money up front unless I could do it by credit card or

k3v1n123 wrote: »

......if its a reputable company and your getting a guarantee you should be covered by there insurance backed guarantee for deposits.

Anything else and I’d find another contractor

foxymum1977_2

just passing on the advise given on the BBC1 show! i totally understand as my husband is a builder and it can be extremely worrying to trust customers to pay, you hear (mainly on TV!) so many stories about builders running off with deposits so either way is a worry, the best way it to have a contract i guess.

phill99

So how come people are happy pay all the money up front to B & Q for them to fit a kitchen or bathroom, or pay a huge deposit to Anglian or Everest Windows, who are huge companies with massive cash reserves, but when it comes to a small independent trader, people think it is acceptable that a deposit shouldn't have to be paid?

keystone

foxymum1977 wrote: »

the best way it to have a contract i guess.

No its not the best way its the only way.

Cheers