Boilers, quotes and deposits

[Rod]

As already mentioned, a replacement boiler is probably on the way for us. For various reasons (including lack of competence with gas!), we are getting a corgi in to do the whole job.

One issue that we have no experience of is handling deposits for substantial jobs.

Which of the following are normal and reasonable approaches?

1 Pay the entire amount on completion.

2 Pay a deposit on ordering, the rest on completion.

3 Pay a deposit on commencement of work (or, maybe, delivery of boiler to our house), the rest on completion.

4 Some alternative - maybe a hybrid of the above.

If two (or more) payments are made as in option 2), what sort of split would you expect? E.g. 10% on order, 90% on completion or the other way around.

How can we protect ourselves financially? I am thinking of all the various circumstances that could cause loss or extra expense including the corgi engineer becoming ill after taking a deposit, even starting the job, or worse. I don't mean finding that an extra TRV is required. :-)

[John Rumm]

With many installers they may be happy to present you with the whole bill once complete. If they want a deposit then fine. 10 to 20% would seem fair enough.

The main thing you need to protect yourself is to have the ability to hold back some money at the end (i.e. enough to exert some leverage on the supplier) should anything not be to your satisfaction.

[Owain]

Bear in mind the CORGI should be getting the boiler and other materials on 30 days' tick from the merchant, so provided he fits it fairly quickly he's not actually going to be out of pocket.

Agree in writing what is to be done and when and include the words "and all works necessary" - that prevents him saying something wasn't included in the quote - and state an agreed date for completion of the works to be "of the essence of the contract". Ask if your CORGI has key worker insurance, so that if he is unable to complete the job personally his insurance will pay for him to appoint a substitute.

If he doesn't complete the work on time (regardless of whether he has insurance) he's in breach of contract, and you could then get someone else to finish the job and sue him for the cost. However, if he has key worker insurance to complete work-in-progress that simplifies things.

Owain

[RedOnRed]

In our case we payed a deposit on the workman's arrival to do the job and the balance on completion.

I can understand that it does make you feel a bit uncomfortable, but I suppose you have to see it from the workman's side as well. He's probably as worried as yourself about being ripped off.

Make sure you get a receipt for everything and his van reg. Oh, and maybe a strand of his hair with a root attached and a finger print.

[Ed Sirett]

I only ask the customer for a deposit if I have not dealt with them before hand. As I have experienced a couple of customers who changed their minds (admittedly about smaller work). I have found it necessary to bring in this policy. If I ask for a deposit it is more the materials usually around 30-40% of the total, however on the other end I'm likely to say something like "Pay only when you're satisfied it's all working well.".

[Dave Plowman (News)]

On the rare occasion when I use a tradesman, I'm perfectly happy to pay reasonable 'out of pocket' expenses at the start of the job and stage payments too - if the price is competitive. It costs me nothing - but credit obtained may eat into the end profit of that tradesman, and result in a higher price. However, I'd not dream of paying the full price before I'm satisfied with the end result.

[Ed Sirett]

Quite so. However you'd probably be amazed at the number of people that wish to pay as soon as I have cleared up. Even when I say it will need some more work to finish off a few lose ends!