Contractor lying to me about price of materials

[Stouffer123]

Is it normal practice for contractors to lie about the price of materials? I’ve got a contractor putting up some fencing for me, it’s costing a large amount in total. The agreement was I would buy the materials and get them delivered to me and then I would ‘own them’. He ordered the materials through his trade account and he gave me the price but when I rang up the merchant to pay, the price was significantly lower (about £300). I queried this with him and he said it was an ‘error’ but when I rang the merchant back they told me it was a trade discount. I wasn’t aware of this so feel a bit silly. I just paid it because I didn’t want to cause a fuss, but am I being unreasonable to feel that he lied to me about the price? Is it normal for contractors to do this or is it normal for them to pass the saving onto you. Just want to know if I’m being taken for a ride.

But then he should be letting OP source the materials herself.

She could get a better deal elsewhere.

It was delivered to her.

I am not sure what happens in places like Wickes, but it always used to be the case that when builders merchants offered trade discounts it was a business to business transaction, and wasnt covered by all consumer regulations, so less protection.
I have had work done recently and could almost certainly have sourced the materials myself a little cheaper, but the labour costs far outweighed the cost of materials. If something had been wrong with materials I purchased I might have had to pay for additional labour to get it fixed. If the tradesman supplies the materials there is no doubt as to whose responsibility it is.
However you seem to have the worst of both worlds in that he is expecting you to buy the materials without the benefit of increased responsibility. I would have more of an issue with that than the cost.

Exactly this! My current contractor feels the exact same way. What a fantastic way to do business.

Exactly this! People seem to be missing the point, it’s the fact that he lied about it and then got the merchant to amend the invoice for the materials so it looked like I was paying more and the difference went into his trade account! No issue at all with this if he told me up front and I could seek to compare prices.

Ok this is really interesting - I didn’t know this! So in future do I make sure the contractor buys the materials?

This is a hindsight question unfortunately for work that has already been done. It’s entering into another transaction with a new contractor who does things very openly has prompted the question. It would seem that openness is very rare based on these responses

I'm not sure this is working how you are imagining it is. Dh is a tradesperson and has some trade accounts, but they don't work quite like a bank account where you can hold money. It's more like a running tab. You go into debt and then you pay that off at the end of the month, which the advantage that you get a bit of a discount. I can't imagine that a proper business would be in cahoots with this tradesperson to allow him to mark up an invoice above the trade price to get someone to pay a credit into his account he then gets to pocket.

I'm wondering if it's actually not just more likely that the store wasn't allowed to use his trade discount for a purchase by a random member of the public. If he can purchased the materials himself, he would have gotten the discount and all the protections associated with that. But you wanted to purchase them directly and there was some confusion, and then in the end, the price you were given was the retail price because the store wouldn't honour the purchase on a trade account by someone who wasn't the account holder? It's annoying and it sounds like poor communication all around, but I'm not sure it is as much of a scam as you are assuming.

The trade guys would charge retail to the customer and if I got them the job would split that difference with me ,it's a common thing in trade retail.

Nearly every company in the world will add a mark-up on materials. It’s how they make money. You don’t go to a coffee shop and expect to pay for the coffee at cost and then the barista’s labour. Unfortunately a lot of people think builders are ripping them off when they add a mark up on materials when they absolutely should do to run a profitable business. It is particularly insulting when you get clients who want to get their own materials to save money and yet don’t have a clue what materials they might need and expect the builder to take the time to measure up, do all the calculations and provide them with a list of what’s needed and then only expect to pay him a day rate for his labour.

unlikely as she was benefitting from his trade discount

But she isn't, he's keeping the discounted amount for himself.

He ordered the materials through his trade account and he gave me the price but when I rang up the merchant to pay, the price was significantly lower (about £300). I queried this with him and he said it was an ‘error’ but when I rang the merchant back they told me it was a trade discount.

Did he try and take the £300 on top of cost from you to pay the trader? or did you say up front you would pay?

I dont think it is clear

Say it was £800 for materials retail, and £500 trade
If he asked her for £800 to pay for the materials and then she paid £500 - yes be annoyed as he tried to get the extra £300

If she said I will pay them direct and he said £800, but when she phoned it was £500 - do not be annoyed

(does that make sense, the key fact needed is WHEN he told her £800 and if they had agreed for her to pay before that)

The OP says in the OP that she paid the full amount because she 'didn't want to make a fuss'.

she said she "paid it" - I couldnt tell if she meant the full amount or the discounted amount

She’s saying she didn’t make a fuss, so she paid the higher amount. She also says ‘He’s getting the difference into his trade account’.

Of course he gets a trades discount, he buys thousands of pounds worth of stuff a month.
So you were being charged his discounted price?
If you bought it as an individual it would be more expensive?
As long as you're paying the £300 to either him or the supplier I don't see the issue, other than you save money?

This needs repeating.

Trust has been broken. Do not use.
Prices shouldn't alter.
If someone ever gives you a price, then change it, they should honour what they first told you.

He’s not lying he’s given you the retail price for goods he buys wholesale it’s how he can price his work and time tescos don’t sell you milk for what they buy it for 🤦‍♀️

Absolutely normal. You've never been self employed have you?

Remember they also have the time ordering, collecting or arranging delivery, fuel cost, insurance etc.

But he's still spent time working out what he'll need, potentially visiting the builders merchant to look at products, fuel, vehicle etc.

It's not black and white.

By ringing the merchant yourself I'm surprised he's still doing the job for you, most would've got the measure of you.

It’s not a lie, it is normal to add a percentage to materials and a percentage to labour - that’s contracted. That’s the guys cut. Otherwise they are doing it for free.

i worked for a contractor. Major kitchen fitter once called me (as the contractor) and asked me what percentage I wanted adding - so it was invisible to the client….. it’s common practice.

This is the correct answer