When should I pay for materials ?

Dick_here

Planning on having a garage demolished and retaining walls built, total cost 6-7k from quote received.  Materials is over 2k, and he said that needs to be paid in advance.  Is that normal or sensible for me to do that ?  Fingers crossed, the guy seems genuine, but should I accept that or is paying for anything in advance a bad idea and to be avoided ?  I understand he has to order materials of course, but is payment upfront needed (by me) or is this a sign to look elsewhere ?

tacpot12

It's not unusal to have to pay up front for materials, but I would ensure your contract states that any materials bought with your money have to be delivered to your house.

You might also look to have the money placed in Escrow with a solicitor and not released to the builder until the goods are delivered to you - the condition for release of the funds to the builder should be an delivery note signed by you, and an invoice from the supplier. (The builder gets paid the value of the invoice). This protects the builder because he knows that you can pay, and that the solictor will pay him when the goods arrive at your house. The builder might be out of pocket for a week, but no longer.

If the builder won't do that, find out what he will do? I'd be expecting him to leave his car or a kidney with me.   

WustyRex

1/3rd at least. If any traders go out and buy a load of materials for your job without payment, they deserve all that can go wrong.
depending on the timescale, expect to pay interim 1/3rds too. BUT leave the last third until the job is finalised. 
tacpot 12 must be living in a different world. Ever heard of NIGHTMARE CUSTOMERS? there are plenty. 

fenwick458

tacpot12 said:

You might also look to have the money placed in Escrow with a solicitor and not released to the builder until the goods are delivered to you - the condition for release of the funds to the builder should be an delivery note signed by you, and an invoice from the supplier. (The builder gets paid the value of the invoice). This protects the builder because he knows that you can pay, and that the solictor will pay him when the goods arrive at your house. The builder might be out of pocket for a week, but no longer.
 

well that's a lovely idea but getting solicitors involved for £2000 worth of building materials is ridiculous, solicitors charge £200 an hour don't they? 
also there's a good chance if you mention getting solicitors involved to the builder before the job has even started they will just tear up the quote and move on to the next job!
paying up front for materials is perfectly normal, but you still need to check out the tradesman first. i.e have you get a written quote with their company details, do you know where they live, have they got a good reputation etc..

tacpot12

There are at least as many fly-by-night traders as there are nightmare customers. I know my suggestion is a bit much for £2,000 of materials, but that is still alot of money to have someone run off with. 

Dick_here

Thanks for the views.  I pointed out that I wasn't comfortable with paying blindly in advance and asking if he had any suggestions, and I've not heard back since.  Hmmm.

brewthebear

When we built a house paid for and ordered all material myself. Was delivered to my site so builder was clear what money he was getting, so no stress take the worry out and order your own.

Risteard

brewthebear said:

When we built a house paid for and ordered all material myself. Was delivered to my site so builder was clear what money he was getting, so no stress take the worry out and order your own.

You would be liable for it then.