TF Payment Terms

[Coops]

I'm noticing timber frame suppliers pushing for 100% payment before despatch...in my world this is an absolute non starter, I would always only ever pay a maximum of 75%-80% up to delivery with a defects retention of at least 5% held for a year after completion.

 

Am I missing something?

 

 

Edited December 7, 2019 by Coops
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[Thedreamer]

38 minutes ago, Coops said:

I'm noticing timber frame suppliers pushing for 100% payment before despatch...in my world this is an absolute non starter, I would always only ever pay a maximum of 75%-80% up to delivery with a defects retention of at least 5% held for a year after completion.

 

Am I missing something?

 

 

 

Was one reason I didn't go with a timber frame supplier. If you stick build and have a couple of builder merchant credit accounts you now have a better cashflow position.

 

Don't forget the VAT, if you plan to erect the kit yourself you will pay VAT on the kit.

 

If you buy the materials and stick build you will pay VAT on the materials but it will be less. 

 

The only area I decide to have manufactured offsite was the roof trusses.

 

I keep a blog here if it is of any interest.

 

 

[ProDave]

Pay at least £100 on a credit card for section 75 protection.

 

I have just paid up front for my kitchen worktops, entire payment on a CC in case of issues.

 

Check the limit of liability for section 75

[Coops]

7 minutes ago, Thedreamer said:

 

Was one reason I didn't go with a timber frame supplier. If you stick build and have a couple of builder merchant credit accounts you now have a better cashflow position.

 

Don't forget the VAT, if you plan to erect the kit yourself you will pay VAT on the kit.

 

If you buy the materials and stick build you will pay VAT on the materials but it will be less. 

 

The only area I decide to have manufactured offsite was the roof trusses.

 

I keep a blog here if it is of any interest.

 

 

Thanks, zero VAT is the big pull in going for supply and fix I guess. I really would love to stick build to save costs and just  for the sheer love of it, but don't want to catch a cold with the costs, flogging me balls off for hardly any commercial benefit is not in my game plan.

 

 

 

[Coops]

11 minutes ago, Thedreamer said:

 

Was one reason I didn't go with a timber frame supplier. If you stick build and have a couple of builder merchant credit accounts you now have a better cashflow position.

 

Don't forget the VAT, if you plan to erect the kit yourself you will pay VAT on the kit.

 

If you buy the materials and stick build you will pay VAT on the materials but it will be less. 

 

The only area I decide to have manufactured offsite was the roof trusses.

 

I keep a blog here if it is of any interest.

 

 

And yes, your blog is definitely of interest, I'll be taking a look. Looks Amazing 

[joth]

3 minutes ago, ProDave said:

Pay at least £100 on a credit card for section 75 protection.

 

I have just paid up front for my kitchen worktops, entire payment on a CC in case of issues.

 

Check the limit of liability for section 75

The whole transaction has to be under £30k for that though?

 

[Thedreamer]

1 minute ago, Coops said:

Thanks, zero VAT is the big pull in going for supply and fix I guess. I really would love to stick build to save costs and just  for the sheer love of it, but don't want to catch a cold with the costs, flogging me balls off for hardly any commercial benefit is not in my game plan.

 

 

 

 

If you are considering the commercial benefit, you might be able to save design/engineer costs if you choose a offpeg design from a timber frame supplier. Our house is one off and designed around what we want so stick building allowed some flexibility here, but we had to paid for design and engineer calculations.

[Coops]

I would only engage a TF on sensible terms anyway, otherwise forget it.

[Thedreamer]

2 minutes ago, joth said:

The whole transaction has to be under £30k for that though?

 

 

Also not sure what credit people can get, but would the stage payments be more than the credit limit?

[Coops]

Just now, Thedreamer said:

 

If you are considering the commercial benefit, you might be able to save design/engineer costs if you choose a offpeg design from a timber frame supplier. Our house is one off and designed around what we want so stick building allowed some flexibility here, but we had to paid for design and engineer calculations.

Of course yes. Shouldn't cost more than a couple of grand though, but yes comparing apples for apples is difficult, problem is until I engineer the build I can't take off materials accurately so a bit (a lot) of guesswork 

[nod]

If you are considering the commercial benefits You would be better traditional than TF 

TF is perhaps more convenient in winter But comes at a cost 

[ProDave]

1 minute ago, Thedreamer said:

 

Also not sure what credit people can get, but would the stage payments be more than the credit limit?

I think you only have to pay £100 on a CC for the entire transaction to be covered. But if the limit is £30K probably not much help.

 

I didn't employ a "timber frame company" but rather a firm of local builders to build and erect the frame. I paid them in stages in arrears.

[Coops]

1 minute ago, nod said:

If you are considering the commercial benefits You would be better traditional than TF 

TF is perhaps more convenient in winter But comes at a cost 

You mean block/brick?

[Thedreamer]

11 minutes ago, nod said:

If you are considering the commercial benefits You would be better traditional than TF 

TF is perhaps more convenient in winter But comes at a cost 

 

Is there much difference between a stick build timber frame, erected and made by a joiner compared to somebody who can lay blocks?

[Patrick]

Or you go half-half. Let a company produce pre made frame sections and slot them together yourself. Finish off yourself... This way you not building the whole thing as a stick build but got a frame up pretty instantly which then just needs insulation and the rest.

Might be suitable to your situation.

[nod]

3 minutes ago, Thedreamer said:

 

Is there much difference between a stick build timber frame, erected and made by a joiner compared to somebody who can lay blocks?

Not an expert on TF costs 

But I plastered and tiled two self builds last year More or less identical Both where watertight minus’s doors and frames 

Neither did any work themselves 

Traditional was at 65k TF was over 100k 

[PeterW]

12 minutes ago, Patrick said:

Or you go half-half. Let a company produce pre made frame sections and slot them together yourself.

Full VAT payable then as it’s only VAT exempt if they supply and fit. That would be a big chunk of capital to be waiting on reclaiming. 

[nod]

1 hour ago, Coops said:

You mean block/brick?

Yes