Ask a tradesman


Builder is asking money upfront


I am planning to build an extension and already submitted an extension application to local Counsel found a builder who asking for 10 k upfront to pay for materials and cetera.
Can somebody advise here or provide me with good guidance or documents to follow.
Second quastion is it good idea to sign a contract between builder and me.
Third quastion to save on cash possible to find builder to pay cash in hand Vat free?

7 Answers from MyBuilder Extension Builders

Best Answer

In answer to your question about money up front you should be paying no more than 10% up front and then only when initial materials arrive on site. The job should then be paid for in stages, you paying on the completion of each stage so that you get the work up front, with the final payment on completion, this is the way we have always worked.
It is always a good idea to sign a contract that way you know exactly where you are
What’s included and what’s not.


Answered 10th Apr 2015

Never pay money upront it should be paid in stages for an extention the first payment should be made when the groundwork is done upto damp course level. For this a contract would be an advantage for both Parties. I personally supply labour only which keeps the cost down for the customer as im not vat registered.


Answered 23rd Jul 2020

20% upfront, then 3 staged payments of 25%, leaving 5% retainer paid within 14days of competition.

Any issues with deposits,,, find a builder to work for free and then try getting your weeks shop on credit

Builders take deposits for financial security, Builders will also have a contract for you to sign detailing schedule of works, deposits, payment terms and public liability insurance details.

Cowboys won't


Answered 23rd Jul 2020

An up front payment is normal to get the job started, it should be about 15% - 25% of the job price to get things started also there should be a clear stage payment schedule given to you as part of the quote in turn you should have a contract which clearly states what and when you are paying for that you and the builder will sign. If you pay cash it is not traceable should you have a problem or disagreement that results in legal action in the future.
Hope this helps.


Answered 10th Apr 2015


£10000 sounds like a lot to pay out as a deposit. 5% of the job total is acceptable.

A contract is a good idea but no-one with a good reputation is going to do that size job and get paid cash. You won't get invoices for cash either so no come back if you have any problems. Be careful!!


Answered 23rd Jul 2020

Most builders will charge upto 1/3 of the job price befor starting if it is a major project
Then another 1/3 at a confirmed stage in the job ie foundations and first floor complete then the remaining 1/3 on completion
Remember materials on that scale are expensive and he probable has workmen to pay

Defiantly sign a contract it protects you as well as them just ask them to go over exactly what it includes and read their terms and conditions
And ask if his insurance covers completion if something happens during the build

Obviously you can save money for cash but make sure you get a recipt otherwise there's no paper trail

Hope that helps


Answered 10th Apr 2015

Response to your first question, pay the builder in phases normally in 3 phases first phase would be to build the foundations and standing structure. Then pay after the build is water tight and last payment when work is finished. You would have to agree the amount for each phase it's quite normal to pay a builder this way .


Answered 10th Apr 2015

Post your job to find high quality tradesmen and get free quotes

Can’t find an answer? Ask a new question

Question Categories