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Roofing

Is it usual to request for a 50% deposit before any work has been completed, especially when the company is not vat registered ?

I am having a roof replaced with fibre glass and having four external walls re-rendered and painted on a block of 4 flats and have been quoted c£20,000 for this work. Is this nornal procedure to ask for such a large deposit upfront ? Any advice would be greatly appreciated. Thanks

10 Answers from MyBuilder Roofers

Best Answer

Yes, It's called cash flow. Could you afford to do a £20,000 job then wait for the payment?.

2011-08-03T22:25:02+01:00

Answered 3rd Aug 2011

you should agree a 20% deposit and 3 stage payments as the works progress. Also work to a schedule
Regards
Mike Cleverley

2011-08-03T22:25:02+01:00

Answered 3rd Aug 2011

Hi there
Larger company's can cope with large outlays but if it is a small company they may ask for a deposit . But asking for 50% to me is a lot and would start alarm bells ringing. If I was doing the job 25% would be the most I would ask for. Hope this helps.

2011-08-03T22:25:02+01:00

Answered 3rd Aug 2011

Its not really the done thing and i would be a little wary of anyone who asks for 50% up front.

I usually ask for 10% deposit and then work the balance out in equal stage payments over the course of the work.

Hope this helps!

2011-08-03T22:25:02+01:00

Answered 3rd Aug 2011

I would have thought that if the company was carrying out works to that value, then they must be near the vat threshold, unless they only do 3 jobs to that value during the tax year.
As for asking for 50% of the payment, have they completed at least 50% of the works.
You should really have had some form of payment schedule drawn up before any works was started, agreed and signed by both parties.
Do you know the company, recomendations and seen any of their work, also how long have they been trading.
I understand the builder wanting money to cover material outlay and labour/running costs, but 50% up front is a bit worrying.
I would say if your happy with the works done to date then, get something in writing, regarding the payments.
I am not saying the builder could be dodgy, he could well have done 50% of the work, but most of the clients on Cowboy Builders have given large deposits and poor old Dom has had to track them down.

2011-08-03T22:25:02+01:00

Answered 3rd Aug 2011

Hello.

Any reputable building company will not usually ask for a deposit. We normally get materials on account at a builders merchant and dont have to pay for it until 30 days later, but its usual practise to ask for payment in stages. For example, once materials are on site a payment may be required for the builders piece of mind, then at set intervals. In your case I would ask for £5000 upon receipt of materials and then 3 more payments of £5000 as works progress. The final amount is normally paid upon satisfactory completion of the work.

Some of the larger companies ask for deposits due to busy schedules and the fear of timewasters but there are not many of those!! Even they would only ask for a maximum of 25% deposit to book a slot!!

Beware those that are asking for sucha big deposit and please make sure you have references or have seen previous work of theirs.

Regards,

Rick

2011-08-03T22:25:02+01:00

Answered 3rd Aug 2011

for a job of 20k, its not unual to ask for a deposit but 50 per cent seems alot, and a 20k job seems alot for a company tats not VAT reg!! hope this helps

2011-08-03T22:25:02+01:00

Answered 3rd Aug 2011

theres 2 ways of looking at this this company could do the job and you may not pay them you expect them to trust you but you questioning there trust! personaly we dont take deposits but i know a lot of companies do being vat regd has nothing to do with it have you checked out there address have you got land line numbers are they regd with any trade bodies?

2011-08-03T22:25:02+01:00

Answered 3rd Aug 2011

Yeee Haaa, I bet they turn up on horseback.... Sounds a reasonable quote for the amount of work the are doing, but 50% sounds a bit much up front...maybe some (20%)for materials, scaffold etc....you obviously don't trust them...so go with your gut feeling

2011-08-04T22:25:01+01:00

Answered 4th Aug 2011

Due to non payment previously, I always ask for material costs on delivery and 25% of labour costs up front, followed by stage payments on a set schedule with my client, This shows trust by both parties.

If a client is not happy to pay a small portion for a deposit, what’s to say they’re happy to pay the final instalment?!

Likewise, if a tradesman asks for a large deposit, likelihood is they won’t finish (or even start!) the job.

Large deposits are also a sign of large ‘add ons’ as you’ll feel obligated to stick to that tradesman?!

Go with your gut 😊👍

2018-02-12T22:05:01+00:00

Answered 12th Feb 2018

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