Building contractor wants 50% upfront, fair?

Jamesg2011

Hi
I have assigned a building contractor to fit out our new salon at a cost of £39,000.00 plus VAT however the company is asking for 50% upfront!
Is this unusual for shopfitters? Usually I would at most pay in three instalments. 

Thanks

AJ

teamgb

Shopfitters are no different to Builders. I agree with Mickey do not pay money upfront, get a written contract to include stage payments. Walk away if they dont agree.

I am a retired Builders Merchant, I have lost count of the times upset people contacted us because they have paid cash to a Builder for materials which never appeared. Shopfitters and Builders can get two or more months credit for materials.

Risteard

teamgb said:

Shopfitters are no different to Builders. I agree with Mickey do not pay money upfront, get a written contract to include stage payments. Walk away if they dont agree.

I am a retired Builders Merchant, I have lost count of the times upset people contacted us because they have paid cash to a Builder for materials which never appeared. Shopfitters and Builders can get two or more months credit for materials.

Credit doesn't protect you if you don't get paid. You still have to pay the suppliers. 

tacpot12

Perhaps as we are all becoming less trustworthy we should make more use of ESCROW accounts. You would put your £39,000 into an account managed by a solicitor, who would release payments to the shopfitters when they complete each stage of work, or when they can convince the solicitor that you are frustrating the contract so that they have bought materials that they can't use. In this way, the shopfitters can be certain that they will be paid if they finish the job, and you can be certain they won't get paid if they don't finish the job. 

ComicGeek

Jamesg2011 said:

Hi
I have assigned a building contractor to fit out our new salon at a cost of £39,000.00 plus VAT however the company is asking for 50% upfront!
Is this unusual for shopfitters? Usually I would at most pay in three instalments. 

Thanks

AJ

Surely you negotiate the payment terms at the same time as the project cost? No way that I would be paying 50% up front - get a proper contract and pay in instalments based on work actually completed.  

It would depend on how long the works are going to take - monthly valuations would be normal, could reduce to weekly if the works are shorter.

I'm just doing an extension at home - JCT contract, no deposit, valuation at the end of each month, paying based on what has been completed only, 5% retention. You can find trustworthy contractors with reasonable terms, just might take longer to find.