General Question (some DIY connection!)
I am looking at getting some minor(ish) building work done - re-roof of extension, brick up an refit windows etc. Probable total cost sub £5k What sort of payment terms would be expected by builder for this sort of project? Would like some meaningful retention!
TIA
Phil
As a contractor for a job of that size I would not expect to have retention. Generally retention is on larger contracts and is along the lines of 5% retention on all payments up to completion when half the retention is released and the final half after 6 months when any snagging is completed. A job of £5000.00 would therefore have a total retention of £250.00 going down to £125.00. Not worth the effort. As for payment terms then mine are as follows On all jobs lasting more than 2 weeks, valuations will be made at 14 day intervals. Payment on these valuation and invoices must be made within 7 days. I take no money up front (except where a special order is made on behalf of the client) eg windows, kitchens to order.
Thanks Mike
Playing devil's advocate for just one minute:
Who makes the valuations? What happens if you do not receive payment?
Final question (maybe):
On the size of job described, would it be reasonable to expect a builder to commit to this project ie not use it as a fill-in to drop onto when he sees fit? I have further work of a similar scale, but intend to use this first project as a test of quality and commitment on the part of the builder!
Phil
I might be wrong here but am wondering about contracts as well, Buildstore have told me that there are three main 'proper' contracts out there that protect both builder and client. Might be worth doing a Google on it.
In general without an architect or contract administrator then the builder would make the valuation. On a job of this size you say comes to £5000,00 then you may say to the builder he has all the works but for ease of payment etc you would like an approximate breakdown so say you had on th figure above
2 windows to supply and fit at £1000.00 1 door to move £500 reroofing £2500 general odds and ends £1000total above comes to the £5000
so at end of 2 weeks I would expect you to receive a valuation such as
1 window fitted £500 Doorway moved £500 25% roof done £625Total valuation £1625
Now you only need to check if the above is correct and then you can pay him. Now what happens if you dont pay him. Well in theory the same as if he doesnt do the work. You have a contract if you agree the above and the contract is he does the work, you pay then money so if he doesnt do the work you dont pay him AND if you dont pay him he stops work. Simple, basis of all contracts. I am more than happy to workk for and to a contract as in JCT minor works or domestic works but for small jobs seems very silly to me so I typwe out a full specification plus price plus terms and you sign it. The contract is made
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