45% deposit prior to starting renovations

[themummyway]

Huge red flag right?!

What is a more reasonable figure? 10-20%?

10% maximum

Do you mean a deposit on buying a place or has the builder requested almost half the money up front?

@JoJoSM2

Do you mean a deposit on buying a place or has the builder requested almost half the money up front?

Nope not a deposit on buying a place - a deposit for renovations.

As in fitting a new kitchen, bathroom etc.

This guy wants 90% before the final stages of the project: half now and half at the start of stage two.

Which is crazy to me.

Nope. Much too much.

Nope, we have just started our extension and the builder didn’t ask for a deposit at all.
We are paying in stages at each point so foundations
walls
roof
1st fix
2nd fix and
snagging.
We just paid for the foundations as they are now in, but that was 2 weeks after they started on site.

I’ve never paid anything upfront. However, I’d buy the materials and then pay for the work done at agreed stages.

The total refund is just shy of 60k - does that justify the high deposit request at all?

Refurb** not refund

Way too much - can you do a check on Companies House to check he is a legitimate company?

I paid 33% for my major refurbishment however it was a large company and I was able to pay by credit card (which gives protection).

For a bog standard builder I would only pay enough to cover the cost of materials. Labour is always in arrears.

@roses2

Way too much - can you do a check on Companies House to check he is a legitimate company?

I paid 33% for my major refurbishment however it was a large company and I was able to pay by credit card (which gives protection).

For a bog standard builder I would only pay enough to cover the cost of materials. Labour is always in arrears.

Hey @roses2, do you mind sharing how much your major refurb cost?

Mine is just shy of £60k...

I've just checked his company # and he's legit.

Also, how were the other payments divvidiid?

he's saying 45% before stage 1, 45% before stage 2, 10% before stage 3

I need to clarify what's in each stage...

@roses2

We have just embarked on a house refurbishment in London suburbs (will likely end up a bit over your contract volume) and the builder asked for a £2k deposit which notionally represented the first couple of weeks worth of materials.

And thereafter fortnightly architect’s certificates.

So he wants 100% before he's even finished? Not a chance. I write construction contracts and we keep a 5% retention for 12 months from completion against defects. Probably not entirely applicable to a domestic contract, but no way would I be paying that much. A small amount for materials in advance and then labour in arrears.

Absolutely no way reasonable. 25% after each quarter of the project finished. Nothing up front. If he has a cash flow issue you buy the kitchen yourself so it's yours if he goes under/doesn't reappear.

@themummyway - Get him to invoice weekly for the works then you'll pay on receipt of the invoice. Or find another builder.. I work in construction and I wouldn't dream of asking for this.

Find another builder now. It isn't going to get better.

@PumpkinParent

We have just embarked on a house refurbishment in London suburbs (will likely end up a bit over your contract volume) and the builder asked for a £2k deposit which notionally represented the first couple of weeks worth of materials.

This is helpful as I'm also in London suburbs!

Another builder has said 30-50% non-refundable deposit before works start so I'm guessing I should avoid him too?

I dont think its unreasonable at the moment, but I have added on to your other thread about a proper contract before anything happens.

www.architecture.com/knowledge-and-resources/resources-landing-page/riba-domestic-building-contract#

[quote botswanabanana]I dont think its unreasonable at the moment, but I have added on to your other thread about a proper contract before anything happens.

www.architecture.com/knowledge-and-resources/resources-landing-page/riba-domestic-building-contract#[/quote]
Great, thanks love!

I've just had major work done on my garden, like whole thing ripped out and taken back to mud and then re landscaped. Significantly less than your refurb but breakdown was 10% deposit to secure dates, then ⅓ to start to cover materials then another ⅓ half way through and then balance on completion

@Tinyhumansurvivalist

I've just had major work done on my garden, like whole thing ripped out and taken back to mud and then re landscaped. Significantly less than your refurb but breakdown was 10% deposit to secure dates, then ⅓ to start to cover materials then another ⅓ half way through and then balance on completion

Was this in London? If so, does your gardener work all over? I'm looking for someone profesh to do mine atm x

Unfortunately not. I am midlands based.

Check out your local Facebook groups for recommendations

No way!. I smell a rat