Paying for Building work over 30k

My daughter is having an extension & cost is 40k so over limit for credit card section 75 so what would be the best/safest way to pay?
They have arranged to pay after each ‘stage’ so it’s split up into small amounts but presumably this wouldn’t count as separate works & therefore covered 
thanks for any advice 

Comments

  • What payment methods do they accept?

    If they offer finance via a finance company (think like a getting credit on a bed in a furniture shop) then S75a would apply as its within its limit.

    Could you realistically buy some of the materials directly to reduce the amount paid to the builders? Obviously introduces a different risk that materials may be wrong etc and your stuck with them as its unclear which party made an error. If its £15k of materials from B&Q and £25k to the builders then it brings it into the scope, most likely... there are various arguments on the FOS websites where works have been split and if its really separate contracts or not

    Other than that, pay by debit card in stages, ideally in arrears. If they won't accept that then materials in advance and labour in arrears. 

    There will be a point of who needs who more... if they've more work than they can do then they may just turn down the project if you mess about with how you are going to pay them.

    Really, its better to do the due diligence before contracting rather than skip over it thinking well NatWest (or your bank of choice) can afford to refund it if things go wrong.
  • Hoenir
    Hoenir Posts: 1,255
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    I doubt that credit card is going to be acceptable form of payment. Cash transfer or cheque most likely for a building company. 
  • 35har1old
    35har1old Posts: 956
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    edited 17 November 2023 at 1:08AM
    What payment methods do they accept?

    If they offer finance via a finance company (think like a getting credit on a bed in a furniture shop) then S75a would apply as its within its limit.

    Could you realistically buy some of the materials directly to reduce the amount paid to the builders? Obviously introduces a different risk that materials may be wrong etc and your stuck with them as its unclear which party made an error. If its £15k of materials from B&Q and £25k to the builders then it brings it into the scope, most likely... there are various arguments on the FOS websites where works have been split and if its really separate contracts or not

    Other than that, pay by debit card in stages, ideally in arrears. If they won't accept that then materials in advance and labour in arrears. 

    There will be a point of who needs who more... if they've more work than they can do then they may just turn down the project if you mess about with how you are going to pay them.

    Really, its better to do the due diligence before contracting rather than skip over it thinking well NatWest (or your bank of choice) can afford to refund it if things go wrong.
    It's unlikely that a builder would be setup for CC or DC payments
    Should have agreed payment method before commencing work also should have had stage payments for that value of project
  • They have arranged stage payments & only paying after they are happy with the work - it was just if things crop up in the future 
  • No finance available, they have saved up :)
    will ask about materials may be a way forward 
    many thanks for all advice 
  • DullGreyGuy
    DullGreyGuy Posts: 9,182
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    35har1old said:
    What payment methods do they accept?

    If they offer finance via a finance company (think like a getting credit on a bed in a furniture shop) then S75a would apply as its within its limit.

    Could you realistically buy some of the materials directly to reduce the amount paid to the builders? Obviously introduces a different risk that materials may be wrong etc and your stuck with them as its unclear which party made an error. If its £15k of materials from B&Q and £25k to the builders then it brings it into the scope, most likely... there are various arguments on the FOS websites where works have been split and if its really separate contracts or not

    Other than that, pay by debit card in stages, ideally in arrears. If they won't accept that then materials in advance and labour in arrears. 

    There will be a point of who needs who more... if they've more work than they can do then they may just turn down the project if you mess about with how you are going to pay them.

    Really, its better to do the due diligence before contracting rather than skip over it thinking well NatWest (or your bank of choice) can afford to refund it if things go wrong.
    It's unlikely that a builder would be setup for CC or DC payments
    Should have agreed payment method before commencing work also should have had stage payments for that value of project
    I've been surprised recently that a few trades people I've used all accepted cards thanks to having a Zettle card machine linked tot heir mobile. 

    Agree that even if it were possible for the £40k to be put on a CC that no right minded builder would accept that but for S75 to apply only £1 needs to go on the card and the loss on £1 is probably acceptable for a builder to then give the customer the peace of mind for the remaining £19,999 paid via another method 
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