Booking deposit for builder

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iamaspinner

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I have given the OK to a builder to do some work in my house. It has taken me months to even get 2 quotes, with multiple no shows in between. The works will take place well into 2022. The builder has asked me to pay a deposit to confirm. Is this normal practice and if so what would be the norm? 25%, 50%? Any precautions I should take if I go ahead?
 
Sounds dodgy if the work is going to take place well into 2022. Approx how much money is involved?

The usual procedure is staged payments I understand. You need to be very careful. I understand where you are coming from with trying to get builders these days but you need to tread carefully. You may find something useful

If you do decide to pay something in case you cannot get anyone else then make it as little as possible and nearer to the time for when the work commences.
 
Thank you, Sue Ellen.

To be honest and given the current climate, I didn't think it sounded dodgy to ask for a deposit. He said it was how he and others operated and explained he had x projects and gave me details of the length of time they would take before he could go ahead with mine. We are talking Q2. He also came when he said he would, was punctual and spent about an hour explaining things to me. He answered every question I had and more.

I know all this means nothing but I really didn't get the impression he was trying to con me. He is asking for a third of the estimate (which was given incl. VAT without asking), which was less than €5k, and he wants it now. I would be paying by bank transfer and have a trail of communications (email and text).
 
That's still quite a lot of money and Q2 is a long time away.

There have been many posts on AAM about this type of stuff in the past and it can be expensive and sometimes nigh on impossible to get your money back or perhaps dodgy work repaired. See previous threads .
 
I think go ahead if you can find previous clients of the builder and get recommendations from them. It's nearly impossible to get builders now and anything that gives you leverage, a deposit, seems worthwhile to me. Could you get them to have their solicitor write up a contract that states terms etc?
 
sounds dodgy, I would assume the builder is covering themselves, take a deposit, if a more lucrative offer comes in, return your deposit or push your job back a few months, personally i'd run a mile..
 
iamaspinner said:
He is asking for a third of the estimate (which was given incl. VAT without asking), which was less than €5k, and he wants it now.
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Personally speaking I think asking for a third upfront now is a bit cheeky, I'd be thinking 10% should be enough
But having said that you are caught between a rock and a hard place and if you can't find another builder you really are left with no choice!!
I got a lot of work done on our house this year plumber, electrician and a painter and none looked for a deposit
Keep shopping around would be my advise unless your happy with this builder and paying a third as deposit
 
A third definitely seems like a lot. What are the 'conditions' of the deposit? If you change your mind, can you get it back? If he changes his mind, will he refund you? There's a big question here about having a business like a builder carrying a load of client cash like this. They're not really geared up for this. If he runs into difficulties on his next job, is he going to use your deposit to solve problems on someone else's job, and then wonder why he's short of funds on your job?
 
dereko1969 said:
It's nearly impossible to get builders now and anything that gives you leverage, a deposit, seems worthwhile to me.
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It certainly is nearly impossible, even to get them to come for 5 minutes and give you a quote. I've spent months trying to get two builders to come and give me an estimate!
dereko1969 said:
Could you get them to have their solicitor write up a contract that states terms etc?
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I can try.
tom_12345 said:
I would assume the builder is covering themselves, take a deposit, if a more lucrative offer comes in, return your deposit or push your job back a few months
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That could be the case but I got the impression that this builder seems to go through a list of projects he has in strict order. If I want to book a slot in his list I have to pay up.
Cervelo said:
But having said that you are caught between a rock and a hard place and if you can't find another builder you really are left with no choice!!
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I know. That's why I'm tempted to go for it.
Cervelo said:
I got a lot of work done on our house this year plumber, electrician and a painter and none looked for a deposit
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An added problem in my case is that it's a small job in comparison. Hardly anyone is interested in it.
Pinoy adventure said:
He might need too order in supplies which are thin on the ground so it may well be a good idea too pay an advance payment.
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Good point!
RetirementPlan said:
A third definitely seems like a lot. What are the 'conditions' of the deposit? If you change your mind, can you get it back? If he changes his mind, will he refund you? There's a big question here about having a business like a builder carrying a load of client cash like this. They're not really geared up for this. If he runs into difficulties on his next job, is he going to use your deposit to solve problems on someone else's job, and then wonder why he's short of funds on your job?
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Those are very good questions I am going to ask. Thank you!
 
I don't know if this means anything but I have done a company check and everything is green. He is also on the SEAI contractor list from which I got his details initially.
 
It is entirely reasonable for a builder to ask for a deposit. The builder commits himself to the time, he will have to buy materials. Were you to change your mind before the start he would be left high and dry.

While I think 30% is high, it does seem to be the norm.

I have in the past paid the builders supplier where I was unhappy to pay the builder directly, but that was in a less crowded market and the builder was newly established. If your builder is a long time in business and collecting a 30% deposit in advance is the norm, I would imagine that if you are unhappy with that arrangement he will simply find another customer.
 
RetirementPlan said:
If he's ordering supplies, can you arrange to pay the supplier directly, rather than give the deposit to the builder?
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Yes you could,it makes things easier if supplies are ready too go on site rather than whatever trade ordering them and waiting weeks or months for them too arrive.
You’d be just paying for the labour rather than supply and fit but it might work out slight more expensive as whatever trade might have a trade account
 
I personally think you are mad paying the builder a few months in advance. Any building job of a small nature like this wouldnt warrant a deposit.
You could pay a very nominal deposit two weeks out but otherwise, I wouldnt entertain a 30% deposit months out. What happens if the builder gets covid??
 
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