Flat renovation starting: payment schedule and contract?

[lb00]

Hi everyone,

 

I’ve just agreed on a price and start date with our builder for some work on my flat. The project includes replacing the flooring (I’ll be supplying the tiles I’ve already ordered) and skirting boards, renovating two bathrooms, doing some minor electrical work (mostly adding a few sockets and replacing spotlights with LEDs), and redecorating.

Here are the payment terms the builder proposed:
    •    20% deposit on acceptance of the quote
    •    1st interim payment: 30%
    •    2nd interim payment: 30%
    •    3rd interim payment: 10%
    •    Final balance payment of 10% on completion

 

I’m thinking of asking to change this to 20% on the start date, then 20% at the completion of each 20% of work milestones (so at 40%, 60%, 80%, and 100% of the work). What do you think? Should I also ask for a retention?

 

The builder also mentioned we don’t need a formal contract and that the quote should be enough. I still plan to get him to write down everything he’s committing to in an email to avoid misunderstandings.

Do you think it would be worth doing a more formal FMB or JCT contract?

 

Thanks!

[twice round the block]

20% of what ever your budget is could dissappear into thin air if you don't have a legally binding contract with the builder.

 

If has has done renovation job's for you in the past and your happy with his terms, go ahead.

 

If you found him on faceache or check a trade then I wouldn't be handing any one 20% of my budget as an upfront payment.

 

Of all the trades I've used and all the customers I've done work for over the year's. I have never given or asked for an upfront payment.

Edited November 7 by twice round the block

[Gus Potter]

2 hours ago, lb00 said:

I’ve just agreed on a price and start date with our builder for some work on my flat. The project includes replacing the flooring (I’ll be supplying the tiles I’ve already ordered) and skirting boards, renovating two bathrooms, doing some minor electrical work

Be careful here and make sure non of the work requires BC permission. Drainage can be tricky.. are you messing with the fire protection / sound proofing between the flats or having to notch joists for example which are often commonly owned. Best to check as this can come back later to bite you.

 

Your builder will probably run a mile if you mention a full on JCT contract on small works like this.. also these tend to need a professional to administer = cost. But avoid that you run more risk. Keep researching on the T & C's ! If you want to spend say £50 quid or a bit less you can get a copy of the minor works contract (RIBA can work) which may suit you. It's old hat but Which magazine has some legacy wording that may help you navigate this.

 

Your builder seems to be front end loading this.. much will depend on what each staged payment means in terms of the amount of work effectively, competantly and compliantly has been carried out.