Paying a decking company up front?

[robbieee]

I got a quote from a decking company for £850 for the decking i want. Which is a good price i would say. He says he needs half up front for building materials as he is a "one man company". The rest on completion.

Is this normal??

 

[freddiemercurystwin]

If he can't even afford to the materials for a bit of decking he must not have a pot to pee in!

 

[robbieee]

I know that's what worries me...! I just wanted to check I am not being unreasonable?

 

[xr4x4]

I think it's reasonable to ask for the money for materials upfront, or at least a deposit.

This is because I'm tight and why should I have to pay for THEIR materials? Also if they decide to cancel, your stuck with them.

But saying that... Its not that black and white, customers now days don't like paying up front for small jobs and it is generally advised against.

 

[skotl]

It would raise alarm bells with me. I have a number of friends in the trades, and also in trade-supply companies, and materials are typically bought on anything from 30 to 75 day terms (probably closer to the former in these straightened times!).

So, if he needs to buy the materials upfront and pay cash for them, I'd be wondering whether he had run all of his lines of credit at the suppliers.

Having said that, a deposit is reasonable, but probably just a good-faith deposit of maybe 10%.

In the last few months, we've had gardeners, window replacement, decorators and carpet installers, and have paid 100% on completion.

Maybe you should be direct and ask him why he needs to pay for materials up front?

 

[r896neo]

Most landscapers i know including myself use between 20 and 40% upfront. Mainly it is for security to protect against bad payers. Whilst there are plenty of bad tradesmen out there, there are plenty of bad customers.

By taking a large deposit If they try and not pay etc you are at least covered for much of the materials cost and therefore only have to write off your labour.

Further as a one-man band he may have a small credit limit on accounts say 2000 quid and already used that up this month on a large paving project so is paying for materials upfront until the account is payed off.

In general it comes down to whether or not you trust him, if so then i don't see a 30% deposit as unreasonable and if not reduce it to 15% or maybe you need another tradesman.

 

[robbieee]

He sent me a message on faceboo saying: "Sorry I am a one person outfit unfortunately I don't have that type of money to pay out on materials. Sorry again"

He doesnt have £400 to pay out in materials? I dont trust this guy anymore. It doesnt sound secure. Told him where to go (politely!!). There will be other subby's wanting to do the job that dont require a 50% deposit...

 

[r896neo]

You have probably done the right thing, trust is the key issue.

Its different on a job where you are out 1-2 grand on paving materials etc but 400 quid is quite a small amount to not have the cash-flow to absorb it.

 

[Deluks]

Ask him for shopping list of what you need and order the gear in yourself, employ them on a labour only basis.

Alternatively go with them to the merchants, pay for the stuff making sure they are delivering to you and that you have a copy of the receipt.

No risk.

 

[fencer35]

As a self employed tradesman myself . I always ask for a deposit up front.
Its not that I cant afford the materials but more a case of covering some cost if the customer decides that they dont want to pay ( because it happens believe it or not !)
If you are worried then ask for some references or see some of his work before hand. And good tradesperson keeps some kind of photograpic history of their work and would be more than willing to supply names and phone numbers.

 

[roberta1000]

I think you've done the right thing robieee. I never ask for up-front payment and don't employ anyone who does. I have a minimum of 30 days credit (twice that if I use a credit card) so materials aren't really an issue. On big jobs I would want interim payments of course but not for £400 quid materials and (I guess) a couple of days' work.

It sounds a bit as though they're expecting you to be a dissatisfied customer so you're a whole lot safer not being a customer at all.

 

[Alarm]

Many companies ask for a 50% deposit.
Keeps the time wasters away.

 

[bell824]

normal pracice is to at least ask for the restocking charge as a deposit (normally 25% of material cost) so that if you decide to not go ahead your trade person can send the goods back and not be out of pocket!