Payment terms

[squirrelclub]

Hello,

I've had a quote for some work to my garden and the contractor is asking for 1/3 of the project price the same day as they begin, 1/3 of the project price at an agreed half-way point and 1/3 of the project price once we are happy on completion. Is this normal or should it raise alarm bells?

I think it's a relatively small company. I was expecting to pay on completion. The job should take 5 to 7 days to complete and I've been quoted about £4,300 so each payment would be a little shy of £1,500.

Thanks for any advice.

Seems quite normal really.
We have our own bathroom company and we do 25% on booking 50% the week before we start (as everything has been ordered/delivered and we would loose money to send it back if a customer failed to pay for it) and 25% after completion. Lots of people we know in the industry do similar payments terms.

Thanks, timetodance. That's quite reassuring.

I agree it seams quite normal. There are lots of people who say 'don't pay the trade person anything upfront' but for a material heavy job why should they be out of pocket for materials if thy are a sole trader type set up or small contractor?

It is a risk paying something upfront, but conversely it is a risk for the contractor to buy materials without any money from the client.