Do you pay a builder a deposit before work?

E

ellamac

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Hi All, we are starting to build our own house at the end of October and found an excellent builder with excellent quote. However, he contacted me yesterday and said that before anything starts he requires 45k deposit? Is this standard? My architect is not very happy and said it's not standard but my relation who is a builder said that he seeks deposits also, for materials etc?? Any advice really appreciated as we need to pay him this by next week!!
 
I wouldn't pay anyone 45k up front. What if you never see hime again. I understand the need for a deposit and perhaps payments as the job goes on but definitely not 45k!. Did he give you an invoice stating what the money was for? Otherwise, you have absolutely no comeback.
 
we would never allow any of our clients to pay a builder up front. buying materials etc is bull. that's what his overdraft is for and if he hasnt one set up then id be questioning why. builders who we work with are always paid by stage payments and the first would be once the ground works / clearing of site / foundations have been completed.
 
You could agree to pay him something on account- if materials are on site, otherwise no.
 
that seems very strange, dont forget he would not be parting with cash upfront when he orders and receives delivery as he will have a set amount of time built into credit terms.

i would agree with him a payment timetable linked to completion of the job but as he is asking for money upfront i would be very wary.

it could be trouble with payment for another job where he is trying to use an upfront payment from you to pay a creditor on another side.

your biggest concern would be if he goes belly up after you give him the 45k or along the way of your job !
 
Definitely not, have just been through the building process myself with stage payments. First one was after groundworks and foundation. Several of my friends have been through it as well and I've never heard anything like this. Does he have cashflow problems or something?
 
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I am after building a house... never was asked for money up front...would have told them to run and jump.
 
My parents have just finished building a house and always paid when the work was done, never before. This is useful if his work is not up to scratch cause you can tell him he'll get his money when the work is done properly!
 
When I renovated my property the builder asked to be paid in 3 stages, before, during and after. So I did pay a deposit. It wasnt for a third of the price though, it was about 7k I think, I then paid up to half the amount during the building and at the very end the remainder.
 
Hi all and thanks for your help. I've contacted him and told him that I would not be happy and understandably, he has had some bad experiences but is more than happy if I give him a solicitors letter to say that I won't sell the house without paying him first!! He's starting out so I can see why he was anxious .... but all is well now, so thank you!!
 
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