cwr Posted November 25, 2020 Share Posted November 25, 2020 Our proposed builder wants 5% deposit and paid monthly for work completed. Is this fairly typical? What have others on here agreed to? I had in mind payments at milestone points to align with mortgage drawn downs eg wall plate, watertight etc. though happy to work with whatever is typical. Builder will be doing a reasonable proportion, about 75%, of the work to get to sign off point on our self build. Cheers, Link to comment Share on other sites More sharing options...
Dave Jones Posted November 25, 2020 Share Posted November 25, 2020 No to the deposit. They will get 30 days to pay on their materials if not more. Be careful paying monthly , who decides what’s finished ? Id set easier to identify stages. Foundation , upto dpc, first lift scaff etc who is project managing the build ? They are key. Link to comment Share on other sites More sharing options...
nod Posted November 25, 2020 Share Posted November 25, 2020 Monthly is fine Stage payments can lead to your job being a hospital job (fill in) With no one on site The 5% deposit suggests that he’s a small outfit so you may have to be flexible when it comes to payments Hes probably going to need more than one payment some months You will have to find a way around giving him money upfront Link to comment Share on other sites More sharing options...
PeterW Posted November 25, 2020 Share Posted November 25, 2020 @cwr how big is the build ..? And who’s providing the site setup such as heras and welfare, storage etc ..? Monthly is ok as long as you agree what is included - has he given you a breakdown of the costs and a schedule so you can plan accordingly ..? Bear in mind that some mortgage providers take a few days to process any draw down after inspection, so you could be 10-12 days between stage inspection and the funds in your bank, just watch that doesn’t mess around with your cash flow. Also get a site triplicate book - old fashioned I know ..! If any extras come up you create a triplicate copy of the request and the price. Builder gets the top, you get the middle and the last one stays in the book. You can keep track of any price changing and you know what you are paying for as they should itemise the additional work over and above the monthly stages. Link to comment Share on other sites More sharing options...
cwr Posted November 26, 2020 Author Share Posted November 26, 2020 He'll do about £230k of work. There's about £4k of prelim stuff in the quote, site setuo, welfare, insurance, site security etc. In fairness it'll only take him about 2 weeks to cover the deposit value, so short term risk to me. Yes he's give a good breakdown and I'm happy enough with cash flow for mortgage payments. Link to comment Share on other sites More sharing options...
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