What measures should I have in place before transferring £12,000 deposit

deejbk01

Hi,

I have been quoted 38k for an extension and multiple other works on my house. I've told them over the that I accept the quote, and they've asked for the deposit payment of about 12k arranging the survey (deposit includes all planning permission application fee and architect payment). Should I ask for anything else from them before I pay the deposit?

Alter_ego

A contract?

Ebe_Scrooge

As above, the first thing is to ensure you both sign a contract setting out clearly the payment terms, at which point in the works each part of the payment is due, what exactly each payment covers, etc. etc.


Secondly, I'd have a quick look on Companies House to check that they are a properly registered company. It may not mean much, but it'll take you 2 minutes to have a look : https://www.gov.uk/get-information-about-a-company


Thirdly, it may be worth paying a small deposit ( e.g. £100 ) on a credit card. That way you'll be covered by S75 protection. HOWEVER ... S75 only covers up to £30k. Now, I'm sure someone will be along in a moment who's a little more knowledgable than me on this subject ... from my understanding, the law is a little ambiguous as to what constitutes a "single item" under the S75 terms ( I'm thinking along the lines of : if the extension is £20k and the other works are £18k, and are classed as separate jobs, then you'd be covered. Dunno, just an idea ).


Some information here : https://www.moneysavingexpert.com/shopping/section75-protect-your-purchases


But I would have thought it's a good idea - you've got nothing to lose by attempting to get that extra protection.


Just my thoughts, hope it helps a little.

shaun_from_Africa

With that amount of money it's always best to send a test payment first.
Make a transfer of £1 then when the builder confirms that they have received this, send the other £11,999.

That way you know for sure that the bank details you have got are correct and you won't be sending the money to an incorrect or non existent account.

EssexExile

12k deposit? Wow.

andrewf75

Sounds a lot. Planning application fees etc and architect payment shouldn’t be anywhere near that surely?

I think standard practise is for payment to be made as each stage is completed, not upfront.

Furts

Only you know the details but all round it sounds like you are utterly naïve and about to be taken for a ride.


You should be appointing your own designer, you should be applying for Planning Permission, you should be seeking accurate dimensioned working drawings, you should be seeking a detailed Specification, you should be seeking a Full Plans Buildings Regulations Approval, and you should be looking at numerous other items from build over, to access, to CDM regs to...


All this and more! But you could work on with your designer on all this.


When all this is done you should be going out to seek quotes. You will be doing due diligence, seeking references, looking at previous and existing work, then seeking a contract.


The fact that none of this has been done and you have accepted a quote of £38000 beggars belief. It is blindingly obvious that things are not good here. Put bluntly, without having done any form of design, or approval, how can any competent contractor accurately quote for a job?


To further alarm folks you are willing to hand over £12000 as a deposit. A deposit against what exactly? Perhaps the risk that you will be shafted?

deejbk01

Ok, I've asked about the contract and they've directed me to the document I assumed to be a quote. It's quite detailed and has 3 pages of details laying out the work to be carried out such as site access, roofing, kitchen details, electricals, floor covering, plaster, etc. All the things I'd expect as well as the payment schedule with milestone payment amounts.

It has the company name and address on it, but it's not got a signature from either on it. What exactly constitutes a contract and differentiates it from a quote?

Warwick_Hunt

deejbk01 wrote: »

Hi,

I have been quoted 38k for an extension and multiple other works on my house. I've told them over the that I accept the quote, and they've asked for the deposit payment of about 12k arranging the survey What survey? (deposit includes all planning permission application fee So you’re about to pay £12k and you haven’t got planning. What if it’s refused?and architect payment Haven't you appointed one yet?). Should I ask for anything else from them before I pay the deposit?

What are you getting for 12 grand?

kev25v6

We have just had a £100k extension done and the builder was always paid after work was done. Paid no deposit, payments only when each stage was signed off by the council. The first part of works is mainly labour which they should be standing to for the first few weeks or so, you then make your first stage payment when you have something to show for it, foundations laid/ up to damp proof course/upto roof line etc. £12k is a lot to pay out before they have lifted a spade. You pay the council direct for planning permissions, building regs etc same with the architect for your plans.

EachPenny

deejbk01 wrote: »

I have been quoted 38k for an extension and multiple other works on my house. I've told them over the that I accept the quote, and they've asked for the deposit payment of about 12k arranging the survey (deposit includes all planning permission application fee and architect payment). Should I ask for anything else from them before I pay the deposit?

How much - if anything - of the £12k do you get back if you don't get planning consent?

Before handingover that kind of money I would want to have a meeting with the planners to get a very good idea whether or not planning consent is likely.

Otherwise you might end up with £12k's worth of plans that you can't actually do anything with.

Also, what about Building Regs approval?