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Bricklaying

What should be included in a payment schedule?

Hi,
I'm having a extenstion done to my house and the builder has given me a payment schedule. There is no breakdown in the schedule as to what we are paying for. It basically states the following which we cannot follow on the qoute

On Commencement £X
Demolition and foundation £X
Drainage £X
Joist £X
Wall Plate £X
Roof £X
First Fix & First Fix electrics and Plumbing £X
Plaster £X
Second Fix £X
On Completion £X

We have asked the builder for a more detailed breakdown such as materials, windows, doors etc. etc so we know what we are paying for, however to date this has not materialised. We have done a spreadsheet with everything we have paid to date plus what is on his payment schedule, we could be looking at going over budget by £8000.

Is it normal for a builder to give his client a payment schedule with no breakdown?

6 Answers from MyBuilder Bricklayers

Best Answer

This is normal practice, your builder has obviously given you a fixed price for all agreed works.
The stage payments you have listed are very much how I prepare mine, this is a standard schedule, and benefits/safegaurds both parties, you cant expect the builder to stand out to long for his money, as he has labour, material and plant to pay for.
A lot of jobs are priced up and the total cost of works will be included in the estimate, reasons for no break downs could be, the builders percentage profit, you dont expect him to be just earning wages, he will have lots of overheads, vans, insurances, office staff, the list could go on, but has to be included, its a buiseness hes running.
He also has the head ache of organizing materials, deliveries, all trades when needed, building control etc.
You would only save any money by project managing the job yourself, and it could even cost you more in mistakes.
A lot of people think our days finish at 5pm, believe me it doesnt, we spend hours doing paper work, not to mention filling in the tax forms, payee, vat.
Hes given you a good payment schedule, if your not happy with it, get a couple more quotes.

2011-07-30T10:15:06+01:00

Answered 30th Jul 2011

surely your builder has given you a fixed price? so how can you go over budget? do not pay anymore than the quote ,unless you have asked for extra work to be carried out,if this is the case make sure you obtain quotes from him for this work before it is carried out,make sure you do not pay too much too quick!! gl FOR ex a £20000 job could require 4 £5000 payments the last one being made on completion/satisfaction on your part

2011-07-30T10:15:07+01:00

Answered 30th Jul 2011

Everyone works in different ways but it is most important to keep the client up to date with any additions to the original quote.

If the builder has given you a fixed price then a breakdown should not be necessary, we would normally ask for 1/3 deposit then when the build is 3/4 done we would ask for the 2nd 3rd as an interim payment and the final 3rd would only be paid once the project is completed to satisfaction.

When pricing remember that he will most likely be making profit in some areas on materials but loosing in others so do not look at the materials breakdown too closely

2011-07-30T10:15:06+01:00

Answered 30th Jul 2011

Hi

Usually builders quote to give a client the whole building (to the clients specification) the quote includes (labour and materials, business running costs, advertisement costs, insurance costs, plant costs, tool costs, van cost etc etc. If the client accepts the quote and there are no extra's or unforeseen problems. That original quote is all the client pays.

Builders usually don't break payment schedule down into material costs because you're not just paying for materials. You are paying for the building. It would be like buying a new house at a set amount and then asking the contractor, how much have you paid for the kitchen, radiator, roof etc

The stages he has listed above are fairly typical for a builder...as each stage is complete you pay an amount. If you think it's going to go over by £8000, don't pay it, unless you know why it's gone over... and it's in writing and agreed beforehand.

Hope this helps

2011-07-30T10:15:07+01:00

Answered 30th Jul 2011

What your builder has given you is a stage break down.When he reaches the various stages in the build then he requires payment for that stage or for work/materials to get to the next stage.It is common practise for this to be done. Regarding a materials break down he will be using a huge amount of a variety of materials to get your build to that stage plus wages for his contractors.Providing he has reached the stage in build before he asks for the next payment you should be ok.Generally he will be able to give you an idea of when he will reach that stage as well.To get a greater understanding of what he will be doing at the next stage,ask him and am sure a genuine professional builder will be more than happy to do this for you.Hope this helps. You can contact me if you need any advise i have many years experience in the construction industry.

2011-07-30T10:15:07+01:00

Answered 30th Jul 2011

Hi, your builder should have given you a breakdown of every single part of the job and also what that job entails. if you are concerned as it sounds like you are, than explain that you need an exact breakdown of all material, delivery charges if used, skips if used, and labour charges all these things should have been given to you on commencement of works.. or you could be paying alot more or even end up with a large amount to pay at the end of the job.

2011-07-30T10:15:06+01:00

Answered 30th Jul 2011

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