Anyone who's had fairly major building work - how did you pay please?

[BonyM]

We are having our loft converted and have just been sent a "payment plan". Basically they want the payment spread over the 6 weeks that they reckon it will take, but with 50% of the total cost paid by week 2.

We think that this is unreasonable, and that a more reasonable option would be to pay a 6th of the total cost each week. Before I argue negotiate with them though, would like to know what others have done in this situation.

I had builders in for about 5 weeks. We paid a weekly amount, which was just under a fifth of the total cost each week. That leaves an amount to be paid when they have completed everything and you are happy with it.

I suppose it depends whether they have to spend a lot of money on materials upfront - is that why they are asking you to pay quicker than they are working? For the work we had done, the materials were fairly cheap in comparison to the cost of the labour.

That sounds much more reasonable - I don't reckon materials will be that much - most of the cost will be labour.

We paid 25% up front to secure all the people we needed and then paid composite bills about once a month with the last 10% payable when all snagging done and building works signed off by Council.

I never pay my final instalment until the 'snagging list' is COMPLETE.

I have been known to hold onto 20% if the job has many obvious snags - any less and they just don't bother sorting them out.

Most bilders have accounts at merchants, they are not paying for stuff upfront. They are on 30/60 day credit.

Their payment plans are fairly standard, tbh. Much of the initial payment is to pay for materials, some of which have to be ordered in advance, and to pay for scaffolding.