A company I want to use to supply a set of windows for my new home (we will install them) wants 50% deposit with the order. Is this excessive (and risky) for normal purchases of this type? The other 50% is payable on delivery
Are you going to pay by cash, cheque, credit card or financing vehicle?
Forget that. I'd not pay the rest until after installation - and want a buffer period to make sure there are no snags.
As regards a deposit, what safeguards are there against that deposit being lost if the company goes broke?
Don't pay on delivery - wait for installation.
Most work on cash on delivery, no deposit. I've yet to hear of one waiting for the cash until fitted !! as any problems could be down to your fitting and most are, if the frames are bowed in or out with the fixings then you will get problems with opening and closing, the frame needs to "held" in place not screwed in overtight. good quality window foam and two knock in fixings per side will do fine. I wouldn't pay a deposit at all let alone 50%
If you mean custom-made windows on a supply-only basis, I would expect to pay a substantial deposit.
However I would want some guarantees in relation to the delivery date - late penalties (and that's a date for *completion* of the order), and I would want to check out their financial status - asking for too large a deposit could indicate they are in difficulty.
It all depends on who you are contracting with.
IF 'the company' is entitled $Something 'Ltd'; - that's a 'WARNING' that the company's total liability is _limited_. Check Company's House for the limit of their total liability. If it's a partnership there's no limit to their liability - but presume that 'efry fings in the wife's name sniff'.
Giving a deposit places you at risk .... effectively you're an _unsecured creditor_ and if 'the company folds you join the queue to pick over the bones .... after HMRC ( nee Inland Revenue), National Insurance; ..... then you.
That's tough , that's life !
Most windows are "custom made" unless you build your openings to a standard size available, much easier to get them made to measure. I still wouldnt pay a deposit, If they are made out of oak or sommat then you might be expected to pay for the materials first, but not for any PVC stuff
This is why it's important to use a credit card or something else governed by the Consumer Credit Act. The issuer becomes jointly liable even if the supplier goes broke. In tht sense, it doesn't matter whether the supplier is a limited company, partnership or sole trader.
In terms of deposits, I think that it does depend on the nature of the product as well.
If the items are completely standard and not made specially to size (i.e. would be usable elsewhere), then I think it's reasonable to strike a harder bargain with the supplier in terms of deposit - perhaps
10% on order, a further 20% on delivery and the rest on *satisfactory* completion.If they are custom, then I think that it's reasonable for the supplier to expect a larger proportion of the cost on order or on delivery - perhaps 50% cumulatively at point of delivery.
In neither case would I go for a situation of having less than 50% outstanding before completion.
The other thing is to agree the price *before* the payment terms. Otherwise, if you push for a larger proportion on the back end, the price may end up being higher. The supplier may be factoring the payment schedule into his cash flow. Since there is a cost associated with payment terms, that may affect the price and it could be higher if he has to fund more of the cash flow. This doesn't necessarily indicate financial difficulties on the part of the supplier but could do if he is very insistant on it.
Agreed. I was picturing some bespoke joinery.
The limited in limited company refers to the liability of the shareholders for the debts of the company, not the company's liability to its customers. If something goes wrong you have claim on whatever the company has (if anything) but only after the Tax Man, and the Bank etc.
In my paragraph .above .. insert the word 'shareholders' ' between 'company's ' and 'total' to satisfy ' snipped-for-privacy@blueyonder.co.uk' 's comment. {whoever s/he is ! }
It should be understood that a 'company' is a juridical person separate from it's shareholders whereby the Directors thereof are nominated by the shareholders to act in the capacity of locutors for the company and are empowered to enter contracts for and on behalf of 'the company' Any practical difference between 'the shareholders' and the 'company' and their respective liabilities is left as an exercise for the gentlemen(?) who asked the question ' what's my prospect of getting back a deposit if the DG 'company' goes broke (?) {paraphrased].
You don't really have a choice, you either pay the 50% or go elsewhere, window manufacturers are sick to death of manufacturing a full set of rames only to be stuck with them when the customer has a brainwave and decides to move house instead, unless you are a trade customer, pay up, up front, I doubt it's negotiable.
He said it's a self install.
I very much doubt that you will find any supplier to accept payment from a domestic customer any later than upon delivery.
tim
Quite right. Think of the overheads the firm has to pay for as well as the product costs.
The only quibble you aught to have is when they deliver them, will they fit the holes? Have a list of specifications ready for the delivery as well as your cheque book. If they are the right size and fit the bill, pay it.
But you should have had a look at some of their previous work to be sure they are good at their job and called on an householder they recommended as a referee. You should have got al that sorted when the surveyor/rep called.
Not the cheque book.......
Thanks for the many replies. The windows will be made to order. As I said it, we will install the windows, but also, as some of you said, I should wait until I have checked the windows before I pay the full balance. How many times have I had people delivering things and then running away with the cheque before I have even had the time to open the box. Then if something is wrong I have to quickly make sure the company is going to put it right and if they start giving trouble I have to stop the cheque immediately, at which point the dispute starts.
I have had other quotes from people who have said they only want payment on delivery but they are a bit more expensive and the windows of this company look a bit better. I think that this company asking for
50% deposit are measuring us up in terms of how reliable we look. If another couple told us that they paid only 5% or no deposit to the company I would feel very insulted.Since I am building the house I have accounts with a number of suppliers and I pay them well after the delivery and checking of the items so why should I not have the same arrangement with the windows company? I can provide trade references
I paid a £1 deposit when I had the windows done at my last place, full payment after install when I had inspected the work.
I signed a contract, and their terms matched the reputation they wanted to give out.
Steve
Many times on this group, I've recommended a small, two-man band of double glazing installers (Sharbeck Windows of Preston, Lancashire). In your case this isn't appropriate as you want to fit the new windows yourself, but I know that Sharbeck don't manufacture the windows themselves - they have their windows manufactured by a company called Profile22 -
John.
You got it in one, the manufacturer of the PVC windows is Profile 22. Yes, I will go directly to them for a quote but I suspect that the local installers get a lower price so it may end up being the same price anyway.
Anybody with experience of going to the manufacturers directly?
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