Deposit/advance or not

[WWilts]

What is the industry norm for deposits/advances to builders?

 

Builder accepting all terms suggested by us. We discussed nearly all that was relevant. However, not discussed deposit/advances but he mentioned deposit in passing without mentioning any sums. 

Question: given the favourable circumstances, what deposit/advance could reasonably be acceptable to a client? Industry norm would be a good reference point for decisions.

[nod]

Bit more detail pls 

TF or traditional Pile foundation 

House or extension 

[WWilts]

5 minutes ago, nod said:

Bit more detail pls 

TF or traditional Pile foundation 

House or extension 

Traditional build new house. 2 storeys, 200 sqm
No piling required.

[Ralph]

We did a 5% initial advance which I was happy enough with as the timber frame was quite expensive and needed paid in advance of delivery. I think a 5% to 10% deposit is not uncommon. 

 

After that it was staged payments in arrears.  

[nod]

3 minutes ago, WWilts said:

Traditional build new house. 2 storeys, 200 sqm
No piling required.

Firs payment 

Footing& Foundations 

to slab 

2nd  up-to chamber 

3rd to watertight 

The rest you can agree between yourselves 

Say first fix joinery plumbing and electrics 

Then a payment after plastering Render if applicable 

You will probably be asked for the rest as things arrive on-site Kitchens bathrooms Boilers heat pumps etc 

The main thing is agreeing upto watertight 

 

I would be keen on anything up front You could offer to settle the concrete bill or bricks 

Once they are onsite 

 

[WWilts]

5 minutes ago, nod said:

I would be keen on anything up front

Would? Would not?

[nod]

21 minutes ago, WWilts said:

Would? Would not?

Wouldn’t sorry

[Bonner]

For brick and block, 3-5 stage payments. First payment at DPC, nothing in advance. All stages written in contract. 

[PeterW]

Errr none ... wouldn’t pay up front for anything. 

[AliG]

I paid up front for things that had to be ordered up front with a deposit. So when he ordered the windows, which required a 50% deposit, I paid that.

 

But for general building work he billed me at the end of the month in arrears and I paid him. A few times he asked for it a bit earlier to help his cash-flow. The builder will pay sub contractors, staff and for materials in arrears so there really shouldn't be much that needs paid up front.

Edited April 9, 2021 by AliG