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Half Money Upfront - is this usual/advisable for paving

  • 04-06-2010 10:20pm
    #1
    Registered Users, Registered Users 2 Posts: 575 ✭✭✭


    Hi,
    We're getting someone - seem to be fairly reputable to pave our driveway
    They cant start for three weeks - however they expect half the money upfront
    (next week I think).
    So three questions

    1) They are a member of ALCI - does this mean something in terms of reliability

    2) Is this usual/standard in the business ?

    3) Is this advisable ? - current climate etc.

    Any expert advice would be appreciated !


Comments

  • Registered Users, Registered Users 2 Posts: 46,713 ✭✭✭✭muffler


    Unless its going towards the purchase of materials I wouldnt give them a cent.


    Edit: I'll move this to the main C & P forum


  • Registered Users, Registered Users 2 Posts: 575 ✭✭✭richardw001


    You mean to pay for materials delivered ?


  • Registered Users, Registered Users 2 Posts: 23,794 ✭✭✭✭mickdw


    It has been known that contractors might look for material costs up front. It would be foolish to hand over funds with the state of the country now though. It is also difficult for contractors to get any form of credit so he is probably genuine. I still wouldnt give him the money like that.
    You could agree to pay him for materials as landed on site. This will be awkward enough if he has a few different deliveries but for you it is the safe way.


  • Registered Users, Registered Users 2 Posts: 2,460 ✭✭✭Slideshowbob


    say you will pay for the value of the materials when they are on your property!??


  • Registered Users, Registered Users 2 Posts: 46,713 ✭✭✭✭muffler


    You mean to pay for materials delivered ?
    Yes, that would be the idea and only pay for whats contained in the accompanying invoices.


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  • Closed Accounts Posts: 2,819 ✭✭✭dan_d


    Not sure how normal that is but maybe try and agree phased payments every week or something? Whatever you do, withhold enough money that if they don't complete the job to your satisfaction, it hurts them not to have the remaining amount, if that makes sense.


  • Registered Users, Registered Users 2 Posts: 40 2sounds


    Id agree on this, or I would have done so up to recently. I tendered for small job a while back and most guys looking to do the work all had this requirement now. I was reluctant to part with 50% of the cash for materials up front , but it seems most trades are 1. having difficulty getting credit and 2. having difficulty getting paid when the work is done. For me I went with a guy , took his car reg , phone number, driving license number and made him sign a receipt for the cash i handed over. Not much I suppose if it came to a legal situation etc but at least gives both parties some confidence. Worked out fine for me but you never can really tell. good luck


  • Registered Users, Registered Users 2 Posts: 575 ✭✭✭richardw001


    Thanks for all your advice
    We're going to suggest that we pay for the materials as they arrive - I think its probably the safest thing to do - I guess that the companies suppliers should be able to accommodate this - and if they don't then I guess that would indicate a problem in itself. Some extra hassle of course however - I guess its better be safe than sorry.


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