Extension - Pre-payment for Materials

andrewf75

Listen to the advice above. Its not just "not great" its definitely dodgy!

Furts

meggles wrote: »

Builder just came round.
I asked if he would have credit at builders merchants, and he said he prefers not to have credit outstanding....

Thoughts?

To be blunt and to add to the multitude of advice being offered, all reputable builders have credit accounts. That is how they run their business.

Think logically on this - do you honestly think this builder is walking around with £5000 in his pocket so that he can pay cash for everything at the builders merchants?

Do you also think he is spending much of his day at the builders merchants cash/trade counter physically standing in a queue as if he were in Tesco? He is not earning money whilst standing in a queue!

Please get real.

meggles

Thanks everyone!

I have two more builders coming round next week to quote up on the work....

My DH wants to get this work started, but I keep saying I want it done right, not now....

Thanks.

meggles

Lastly... in everyone's learned opinion, with this kind of job,

is it customary, acceptable to ask for ANY deposit down?

What I'm looking for is 3 - 5 staged payments due when certain works are done - ie foundations, up to damp proof, up to roof level, watertight, final fix (obviously much more detail would be listed out than what I just did).

This seems reasonable on both sides, right?

Stevie_Palimo

meggles wrote: »

Lastly... in everyone's learned opinion, with this kind of job,

is it customary, acceptable to ask for ANY deposit down?

What I'm looking for is 3 - 5 staged payments due when certain works are done - ie foundations, up to damp proof, up to roof level, watertight, final fix (obviously much more detail would be listed out than what I just did).

This seems reasonable on both sides, right?

I would push for this 100%

andrewf75

meggles wrote: »

Lastly... in everyone's learned opinion, with this kind of job,

is it customary, acceptable to ask for ANY deposit down?

What I'm looking for is 3 - 5 staged payments due when certain works are done - ie foundations, up to damp proof, up to roof level, watertight, final fix (obviously much more detail would be listed out than what I just did).

This seems reasonable on both sides, right?

We recently had an extension built and the builder said this without me pushing for it. We paid nothing until a couple of weeks into the build when the first stage was reached.

As far as I know that is completely normal. Otherwise the customer is taking a huge risk. I don't think a reputable builder should need to be pushed to do staged payments, it should be standard practise.

Its the same for any job, you pay them when they've done it.

phill99

From the builders perspective., he doesn't know you from Adam. How does he know he will get paid? It's fair to ask for a deposit on these kind of projects. But maybe 10%, but certainly not £50k. Just because a builder has a credit account, it doesn't mean the materials are free. They still have to be paid for you. So if he gets his materials on credit, starts to build and then you don't pay, how is the builder going to pay his account when it is due?

hardy1976

The build at worst should be paid for installments, eg once the materials are on site - I guess you can ask for invoices.

50k up front - DO NOT DO IT.

System

For small works contracts it is completely normal for the work to start with no payment or deposit, the contractor carries out work, produces a valuation of that work for the contract administrator (usually an architect or quantity surveyor) they then certify the works and instruct the payment to the contractor.
Occasionally if there is a specialist item with a long lead in time (that's expensive) the contractor might request a deposit against that item.
The idea of paying a deposit because the contractor doesn't know you is why you really want to work with a standard minor works contract, its there to protect both parties.
If the contractor is expecting materials to be bought by the client it would be more common for the client to set up an account for a merchant and place orders on instruction from the contractor, not just hand over a lump sum to a contractor. However the labour would always be paid for after work has been carried out...

meggles

The thing that I don't understand (and perhaps I'm overthinking this), is that the builder is happy to sign the FMB small works contract with the clause re: payment amended to say some materials pre-paid.

Surely if he's happy to sign, he won't do a runner....

But you never know...