Should I Pay A Builder A Deposit
Do You Have A Project We Can Help You With?
The simple answer is yes; It is very common for tradespeople to request a small deposit upfront before beginning work, especially with higher-value jobs. This is generally to cover the cost of materials, subcontractors’ fees, and equipment.
The other common reason is that it provides a small amount of cover for the tradesperson if a customer decides to pull out of the job – since they have blocked out the time to complete the job and may be unable to take on other work for that period, the deposit guarantees them some income for that time.
Also, something to consider from the company’s perspective is that a lot of preparation work like pricing, design, liaising with suppliers, sourcing materials and general admin is required.
By paying a deposit this illustrates that you (the customer) are committed and serious about the project. So not only does there need to be trust from the contractor but also trust from the customer that work will commence.
On the other hand, if your builder is asking for a large deposit upfront this can be a red flag; most reputable builders will not, so it’s important to be cautious if this does happen. Paying out a large upfront deposit could leave you at risk, so make sure you have trust in your builder
Our projects are generally scheduled months/years in advance, and we would typically take a deposit of around £200 – £2000 depending on the type of work and to secure the booking. This would be refundable should the client cancel in appropriate time. All our customers are provided with a copy of our terms and conditions agreement alongside their quote. We are always happy to explain the purpose of the deposit to our customers.
The construction industry has without doubt experienced a challenging and disruptive period with the coronavirus pandemic.
The pandemic has resulted in extended lead times for even the most basic construction materials and most building materials needed in the construction industry have seen a price increase due to supplier shortages and general product demand.
Consequently, forcing companies no other option but to increase their prices including deposit amounts required.
We recognise that it has been and continues to be a difficult time for everyone.
We strive to be a trusted partner for our clients, and we are dedicated to doing the right thing for each one of our customers.
We are always happy to discuss payment arrangements and tailor these as appropriate for our clients.
In summary, Yes a deposit should be given to your builder but there are many factors which can change and determine the amount of deposit require. Ensure you trust your builder and only give big deposits if there is sufficient reason to do so.
when agreeing a deposit to pay your contractor, remember to read up on the company you have hired, check their reviews and portfolio to make sure they have completed similar projects.