Is charging up front normal?

kinkyfox

We're having some windows installed at a cost of about £22k. The company we're going with want a deposit (around 5k) followed by an 'interim' payment two days before installation commences of about £14k. The remaining balance after completion is about £2k.

Is this normal? I'm uneasy about paying so much money BEFORE the work is completed. What if something goes wrong with the work? Their terms say that our initial deposit is protected, but I doubt the interim payment is. It's a lot of money. When we quizzed them they said this is their standard terms.

The company seem legit and a premium installer of Residence windows, but this is the only thing putting me off.

What would you do?

BUFF

Can you put it on a credit card? That way the credit card company becomes equally liable. https://www.moneysavingexpert.com/reclaim/section75-protect-your-purchases/

FreeBear

The installer I use for DG windows usually asks for a 25% deposit (although he didn't on the last job). I too, would be wary of dropping £19K on any job before work has started - Maybe meet them in the middle with a total of £11K ?

And certainly pay a good chunk on credit card.

BUFF

or offer to pay the ~£14k on delivery of materials to site?

Anthony147

kinkyfox said:

We're having some windows installed at a cost of about £22k. The company we're going with want a deposit (around 5k) followed by an 'interim' payment two days before installation commences of about £14k. The remaining balance after completion is about £2k.

Is this normal? I'm uneasy about paying so much money BEFORE the work is completed. What if something goes wrong with the work? Their terms say that our initial deposit is protected, but I doubt the interim payment is. It's a lot of money. When we quizzed them they said this is their standard terms.

The company seem legit and a premium installer of Residence windows, but this is the only thing putting me off.

What would you do?

Unfortunately and this is the increasing trend on so many threads - Trades are completely derisking jobs onto customers (very unfairly imho and customers treated as such should remember this when the market inevitably turns).

Trust cuts both ways and a deposit for materials would be reasonable, however in this case there’s absolutely no risk or impetus on the contractor to do the job or do the job well as before they commence they’ve made a profit (assumption).

Only you can decide if such a one sided arrangement is suitable especially given the demand for services means any contractor good or otherwise can pretty much walk off one job and straight into another.

You can of course attempt to reduce your risk by talking to them - smaller payment, on material delivery etc but given the market they don’t really have to and if they don’t do the job due to an issue whoever you engage next will likely charge a premium.

greenface2

That's too much to put down on a job that's not been fitted . Personally I wouldn't do it and I would encourage a member of my family not to do it . You have no leverage if things went t its up . I am a window installer with almost 40 years trading now company owner . I work differently as 25% deposit (protected ) on order and have an option of 25% when materials arrive with us on site . I rarely choose to take the second 25% and payment on completion works best for me ( and them) If its a larger job or commercial I probably do take the extra 25% to help with material costs which I pay for up front and in full . If a company has 90% of your money before they even start they are not hungry enough to please you fully and get paid in full . Offer half before and balance on satisfaction or walk away . Residence windows are commonly available now and others will offer different T&C . If a customer is known to me I just get payment in full on completion . One of my lads have been out this morning to install one quick window into a friend of a friends bathroom being transformed this week ( last minute thought - only measured on Thursday last) They didn't even ask the price and haven't sent the invoice yet ) 

binao

Is it essential to buy at a sellers market peak?  It can change overnight. 

will-he-payitoff

First thing 22K for windows are they gold plated?

FaceHead

If someone lacks such confidence in their product that they want you to pay for it before seeing it, I would look for a different product. 

Terms like this suggest they have had problems with other customers, so I wouldn't be negotiating it down, but getting someone else. 

If you do go ahead with it, you only have to pay any amount on a credit card for the lot to be protected. 

greenface2

will-he-payitoff said:

First thing 22K for windows are they gold plated?

you don't know how many . how big or if they're gold plated . Bit of an odd comment TBF . I am doing a £48k conservatory end of feb and I was 10 k cheaper than the next best .