Builder payment schedule

Wanderfree

Hi All,
would appreciate your views. This is the payment schedule I've been given by a builder, it seems quite a large % expected before work has started/ Day 1. The job is meant to take circa 2 weeks:

20% deposit to secure start date and time frame  

30% on day 1 

30% 7 days in to the project 

20% upon completion 

thanks

Martin_the_Unjust

Depends on the job and what sort of relationship you’ve had previously with this builder and trades in general.

comeandgo

Will he bringing all the materials with him on day 1?  I have never paid an upfront deposit and never will but I would pay if materials arrived.

ComicGeek

So 80% after only working half the time? No chance! A cynic would think it unlikely that they would do the 2nd week...

I've never paid a penny before work has been done - stage payments only for work completed.

Some trustworthy builders I know do charge a small deposit to reserve the time slot, but then only invoice stage payments after completing each part.

Rosa_Damascena

@Doozergirl - arbitrate please?

Risteard

ComicGeek said:

So 80% after only working half the time? No chance! A cynic would think it unlikely that they would do the 2nd week...

I've never paid a penny before work has been done - stage payments only for work completed.

Some trustworthy builders I know do charge a small deposit to reserve the time slot, but then only invoice stage payments after completing each part.

Deposits are completely normal and above board. Really everyone should expect to be paying a deposit in this day and age.

comeandgo

Risteard said:

ComicGeek said:

So 80% after only working half the time? No chance! A cynic would think it unlikely that they would do the 2nd week...

I've never paid a penny before work has been done - stage payments only for work completed.

Some trustworthy builders I know do charge a small deposit to reserve the time slot, but then only invoice stage payments after completing each part.

Deposits are completely normal and above board. Really everyone should expect to be paying a deposit in this day and age.

Do not agree at all regarding deposits.  A business should have profits from previous contracts to allow them to fund the next contract.  One of the criteria HMRC use to determine whether a business or employee is who carry’s the financial risk.  Being in business means things are a risk.    I have never had to, or been asked, to pay a deposit.  I use well connected businesses and the odd individual.

macman

Depends entirely what the job is. If the material costs are a higher proportion of the job than usual, and the total timescale is only 2 weeks (which would seem to indicate a lower labour proportion), and the materials need to be ordered and paid for upfront, then it may be perfectly reasonable.
So tell us what the project is.

ComicGeek

Risteard said:

ComicGeek said:

So 80% after only working half the time? No chance! A cynic would think it unlikely that they would do the 2nd week...

I've never paid a penny before work has been done - stage payments only for work completed.

Some trustworthy builders I know do charge a small deposit to reserve the time slot, but then only invoice stage payments after completing each part.

Deposits are completely normal and above board. Really everyone should expect to be paying a deposit in this day and age.

Completely disagree. I work in the construction industry as well, and have never asked for a deposit, and have never been asked for one when employing anyone.

Small deposit to secure a date for a large project, possibly (although I wouldn't pay it personally). 50% up front payment for a small project before they even start, not a chance!

What % deposit do you charge?

DanDare999

comeandgo said:

Risteard said:

ComicGeek said:

So 80% after only working half the time? No chance! A cynic would think it unlikely that they would do the 2nd week...

I've never paid a penny before work has been done - stage payments only for work completed.

Some trustworthy builders I know do charge a small deposit to reserve the time slot, but then only invoice stage payments after completing each part.

Deposits are completely normal and above board. Really everyone should expect to be paying a deposit in this day and age.

Do not agree at all regarding deposits.  A business should have profits from previous contracts to allow them to fund the next contract.  One of the criteria HMRC use to determine whether a business or employee is who carry’s the financial risk.  Being in business means things are a risk.    I have never had to, or been asked, to pay a deposit.  I use well connected businesses and the odd individual.

Why should they then provide interest free credit?

Risteard

ComicGeek said:

Risteard said:

ComicGeek said:

So 80% after only working half the time? No chance! A cynic would think it unlikely that they would do the 2nd week...

I've never paid a penny before work has been done - stage payments only for work completed.

Some trustworthy builders I know do charge a small deposit to reserve the time slot, but then only invoice stage payments after completing each part.

Deposits are completely normal and above board. Really everyone should expect to be paying a deposit in this day and age.

Completely disagree. I work in the construction industry as well, and have never asked for a deposit, and have never been asked for one when employing anyone.

Small deposit to secure a date for a large project, possibly (although I wouldn't pay it personally). 50% up front payment for a small project before they even start, not a chance!

What % deposit do you charge?

Standard deposit is 25% using the ECA's model domestic contract terms. It seems entirely reasonable to me. Risk needs to be mitigated and not completely one-sided.