Paying a percentage up front

mirko

We are having a large job done to our house £15,000 (we're happy with the quote and have the money to pay the job sitting in our account) and the builder is asking for half up front right before the work begins (which is next week).

Is that reasonable/normal/expected/too much?

I've got no reason to suspect the builder is attempting to con us out of money, they have a very good reputation on checkatrade for doing very similar work to what we want done.

Doozergirl

No it's not okay! Even a builder with no credit accounts with merchants doesn't need half up front.

We never ask for a penny upfront unless we have to pay upfront ourselves - ie. for a bespoke set of doors or a kitchen from an unusual supplier, but even then, we're happy for the customer to pay directly. The only thing the builder may need if they have no credit to speak of is some materials, but no one needs all the materials on site at the beginning of a job. And no credit and no ability to forward pay a couple of weeks on a new job is the sign of a bit of a problem. Any subcontractors will wait for payment - they certainly don't ask for cash up front.

Check a trade is, unfortunately, not a guarantee of quality. 50% of the job upfront rings huge bells for me. There is just no need - it sounds like someone who needs the money to pay for something they haven't paid for yet. I would run in the opposite direction, personally.

If you're still considering this person, I'd want to speak to his customer immediately previous to you and see where they are on payments vs job completion.

What large job are you having carried out and does your quote include VAT?

Ginkfish

+1 Doozergirl! Last time I paid a building company to do some fairly major work (£25k) I paid 50% mid-job and the remainder on completion. They didn't ask for a penny up front.

Francesanne

When we had our kitchen completely renovated our builder requested the money in 3 payments. 1st payment was paid at end of first days work. 2nd after 3rd day and final payment when work was finished and we were completely satisfied. We were more than happy to do it this way:T. They did great job and we were well satisfied.

mirko

Thanks for the help guys.

The job will take approx a week and they're asking for the first payment this week and the second at the end of the week.

I'll ask to pay after work has begun I think.

Thanks for your help everyone. It's well appreciated. I'll let you know how it goes.

brightontraveller

Although it’s easy to say don’t I can’t see how you can when what there doing is not defined? Also to a larger a extent the amount charged upfront is decided by the demand and availability or if they have a monopoly try telling British gas etc you’ll pay when they’ve finished putting your new supply in see where that gets you lol
Break down the work in stages agree payments per stage with a retainer to be paid on completion
Also recommend you snag the works per stage e.g. you want three rooms painted white with a hint of apple they paint them fine but you find the light coming in two rooms is through double glazed windows which makes the colour look different you don’t like? Its no fault of painter or of you but arguing after is much harder?

Also if the builder thinks yes they owe me 25% at the end of the works but the list of snagging is going to cost me more than there owed some will walk away or not be able to finish the works when you need them? And theoretically yes you can sue etc of get someone else in but the reality is often it takes months

Break the works so if something happens your happy you can live with what’s left stages ideally being rooms finished this also shows you early on if your happy with the standard of works if there doing ten rooms its much better to say after one I don’t like it I’m going to use someone else than after they have done ten? They’ll learn what you want expect early on you’ll get finish you want? They should get works finished on time as after the first they’ll know what you expected because for every doggy builder there’s also a client that’s not sure what they really want the combinations not a good one ? you don’t need to be standing looking over there shoulder but also totally ignoring everything till the end is not a great plan either a happy medium for all normally means all are happy at the end of the job

mirko

To give an update from the original post. So, the job (an extension of two rooms upstairs) is now complete and I'm happy with it and the builders who were great.

They're the only builders who do this sort of job in the area and they said they'd done it on many similar houses in the same estate many times before.

I paid half up front, a few thousand before the end of the project and I paid the final sum today.

I'm not saying it's always a good idea, but it's not always the worst thing in the world to do. It's hard. I'm sure for every "Cowboy builder" story there's also an equivalent "Cowboy customer" one.