Paying builders.

KamSandhu44

Hi all,

First post and I wanted to ask what is the best way to pay builders nowadays?

We are planning to do a big renovation on our house next year. We have been quoted £60k for the job.

Now the builder we want to go with is asking for a £6k deposit and then £10k a month before the work starts for materials.

Now I understand that he wants a deposit to secure the job, but I am not happy handing over £16k before anything is done.

I want to draw up some sort of payment plan, I have no experience in any of this.

What is the best way to deal with this? And what is deemed reasonable?

Thank you,
Kam.

comeandgo

I would never pay that much prior to work. If your builder can't afford this job get another , larger one who can. is the company a ltd company? If so check the last filed accounts at companies house so check how solvent they are. Building companies will order goods then have at least four weeks before the bill comes in and it needs paid. There is no reason to pay for goods up front.

hels234

Hi, we've just finished a 60k extension. We did not pay anything up front, your builder should have accounts to be able to order materials etc we did have fortnightly invoices which detailed the work and materials which we paid after the work was done. Has he given you a contract yet? You really need one, and it needs to be detailed in the work that's going to be done. We are currently holding back the final payment of £3k as there are a few damage and snagging issues. I have no doubt that we wouldn't see the builder again if we had paid this upfront!. Ours was registered with Trading Standards Trusted Trader scheme (NOT Truster trader) and they have already offered to mediate if we have any issues as their one of their traders, is there a scheme like this in your area?, does your builder have recommendations? I don't remember any of the builders who quoted asking for money up front or a deposit.

KamSandhu44

Hi,

Thanks for the replies, he has a LTD and will check him out on companies house.

We do not have a contract with him yet, I will have a conversation with him today asking to get a contract drawn up. He seems to be very pushy for the deposit which is putting me off.

I have just had a look at the Trading Standards Trusted Trader Scheme, there seem to be a few in my area and will give them a ring also.

PH321

Never ever pay upfront. I would just walk away and find someone else.

Double_V

First of all congrats on the house renovation.
It can be exciting.

Now please DO NOT give any kind of deposit prior to any work.
If there is no contract, and pushy about deposit. It's a NO-NO.

KamSandhu44

Hi,

Thank you for all the replies.

This has confirmed my hunch about not paying anything.

Now when speaking with the builder, I don't want to come across unreasonable.

What would be deemed reasonable?

The builder paying for the materials and then invoicing me? We have already agreed what the builder will buy.

Followed by staged payments (with a retention) as work is completed?

Furts

KamSandhu44 wrote: »

Hi,

Thank you for all the replies.

This has confirmed my hunch about not paying anything.

Now when speaking with the builder, I don't want to come across unreasonable.

What would be deemed reasonable?

The builder paying for the materials and then invoicing me? We have already agreed what the builder will buy.

Followed by staged payments (with a retention) as work is completed?

It should be regular stage payments from the outset. These will include the materials so do not pay extra for these. If the payments are say, every two weeks, then the builder gets their money before paying the builders merchants, but they will already have paid for their labour.

Hence all builders take on a risk when working for consumers. They counter this to an extent by seeking if the consumer is trustworthy, co-operative, fair and has ample ready money to pay.

Sometimes builders want money up front with good reason - they are wary about the consumers ability to pay. The consumer then has to counter this.

Builders get a bad press, but most exist to be fair and to work and gain a profit.

KamSandhu44

Furts wrote: »

It should be regular stage payments from the outset. These will include the materials so do not pay extra for these. If the payments are say, every two weeks, then the builder gets their money before paying the builders merchants, but they will already have paid for their labour.

Hence all builders take on a risk when working for consumers. They counter this to an extent by seeking if the consumer is trustworthy, co-operative, fair and has ample ready money to pay.

Sometimes builders want money up front with good reason - they are wary about the consumers ability to pay. The consumer then has to counter this.

Builders get a bad press, but most exist to be fair and to work and gain a profit.

Great post, thank you.

On my part at least, I have no trouble in my ability to pay as the money is already there.

On his part, he is saying he wants a deposit to secure the job, which also I understand, but at 10% I am not willing.

I will have a talk with him tonight, fortnightly payments sound good to me.

DandelionPatrol

KamSandhu44 wrote: »

I will have a talk with him tonight, fortnightly payments sound good to me.

Fortnightly sounds terrible to me. All to easy for the builder to play you and slack imperceptibly. At some point your payments go ahead of what he has actually done. Once your payments are ahead by about the profit he would get on the job, it is not worth him doing your job to completion. So he probably will not.

Always leave him a little short until the job is done. To achieve this you should pay on progress with an agreed schedule of payments against progress.

southcoastrgi

hels234 wrote: »

I have no doubt that we wouldn't see the builder again if we had paid this upfront!. Ours was registered with Trading Standards Trusted Trader scheme (NOT Truster trader) and they have already offered to mediate if we have any issues as their one of their traders, is there a scheme like this in your area?

So you got someone recommended from trading standards, from your post I can't see you have had any probs with them, yet you say if you had paid the retention you would never see the builder again !!

We aren't all cowboys you know, people like you really p**s me off