Workman wants part payment in advance. Is this standard!?

womblingfour

We accepted a quote for landscaping work on our garden. The company is asking for part payment up front. Is this standard?

keystone

It depends on his business model. Its not 100% standard but its not uncommon either. Theres an element of generation of trust in BOTH directions by asking for it too. What %age are they asking for? How much is material content on the quote as a %age?

Cheers

womblingfour

Hi.
It's half the total cost of the job so £1000 in advance. It's a lot of money for us and I feel uneasy handing it over without guarantee we'll get anything in return.

fluffpot

Well it might be for materials. Why not ask them first and see. Then get a receipt when you hand over the cash - that way you're covered. Or you could pay by cheque or transfer so that there's an extra record of payment

keystone

Half is too much IMHO if its largely labour. But if 50% of the job price is materials then its not necessarily unreasonable. Terms and conditions including payment profile should hav ebeen laid out in the contract before you both signed it. How long is the job expected to take? If you feel uneasy that implies you don't trust them so why give them the contract in the first place?

Cheers

SnowBelle_2

This can be a bit of a sticky wicket,maybe they have been stung before?
My OH is self employed and has only asked for money upfront once ( the job was £4000)
I am assuming they are self employed? During the current climate unfortunately some people are having work done then saying that they can't pay.
The customer my husband was working for was a very well off man,my husband picked up the cheque for the work on the Friday due to start on Monday.
It turned out the guy had botched the cheque on purpose(Spelling my OH name wrong)so it could'nt be cashed until the job started!
It is difficult and you may have to go with your gut on this one.

keystone

fluffpot wrote: »

Well it might be for materials. Why not ask them first and see. Then get a receipt when you hand over the cash - that way you're covered. Or you could pay by cheque or transfer so that there's an extra record of payment

You are correct but what OP needs is an invoice for the part payment before handing over anything and with an invoice means of payment becomes irreleveant.

Cheers

booty40uk

If its for materials then ok but pay it when they are on site and not before.

Personally I wouldn't trust any "tradesman" that asked for money up front. Pay them on a day rate basis at the end of each day and keep 20% of the total back until you are 100% happy with the job.

phill99

There will be many people on here that tell you not to pay anything up front. They will tell you that tradesmen have accounts with suppliers and shouldn't be asking for money up front. Well that is simply a load of piffle.

I have acounts with suppliers - some up to a credit limit of £10k. But I can guarantee you that there is no way I am willing to shell out for more than a couple of hundred pounds worth of materials for a customer. I could easily put someones new kitchen on my credit account. But if they go pear shaped, I'm lumbered with the cost of the kitchen. So no way.

Tradesmen are still having a difficult time. There are less jobs about and prices are being pushed down, so tradesmen dont have the cash flow like they did a few years ago.

What I am happy to do now is get the customer to pay for materials direct - kitchens, bathrooms etc. then the customer can take delivery of the kitchen etc and I am not likely to be had for thousands.

If you are being asked for money up front, it does involve ab element of trust on both parties. In terms of the OP, make sure you have a home address for the builder as well as a landline. Ask for references and see if you can speak to previous customers. If the builder is legit, this wont be a proiblem.

Transfer the money into his business bank account rather than give him cash.

Leif

The two bathroom fitters I used, a kitchen installation company and a stove installer all asked for a deposit. It was usually 50%, apart from the cowboy bathroom fitters who asked for more. The Trading Standards Buy With Confidence scheme allows a deposit up to 50%.

It does not seem unreasonable to me to pay 50%, unless it is a large job (£10K say) in which case staged payments are better.

Obviously you need a proper receipt, do NOT pay cash unless it is a tiny amount, and make sure the person/company are registered with companies house, Gas Safe, or whatever is relevant.

booty40uk

I ask for payment for materials once they are on site, then I am paid and the client owns the materials.

I ask for weekly payments to cover wages and travelling expenses.

I then ask for payment on satisfactory completion. So I don't actually make any profit until the end of the job, but I am not out of pocket in the meantime. And the customer has at no time paid for something they haven't already had.