TAMS and farm building projects

inlooniest

Hi all, another thread about TAMS! can anyone tell me how farm building projects work with regard to paying the builder?

Let's say a builder quotes €80,000 for a shed and I get grant approval for 40% and I'm borrowing the rest. Does the builder require x amount before starting or as he goes along or is the full cost paid in one go at the end? And when the shed's finished, does he wait for the €32,000 grant to be paid to me before I pay him in full or do I have to get a short term loan in the meantime? From what I've read there can be a significant delay before the grant is paid.

Any advice/info is appreciated

Miname

Most builders will want payment as normal and then you claim the grant. It's your problem not there's and they can't be expected to carry the cost, a few lads signed dockets as paid in full for some people who then never paid when the grant came in.

Milked out

inlooniest wrote: »

Hi all, another thread about TAMS! can anyone tell me how farm building projects work with regard to paying the builder?

Let's say a builder quotes €80,000 for a shed and I get grant approval for 40% and I'm borrowing the rest. Does the builder require x amount before starting or as he goes along or is the full cost paid in one go at the end? And when the shed's finished, does he wait for the €32,000 grant to be paid to me before I pay him in full or do I have to get a short term loan in the meantime? From what I've read there can be a significant delay before the grant is paid.

Any advice/info is appreciated

The grants look for a paid invoice before paying out so most likely the builder will have to be paid up fully before any grant money comes in. How you do it be it in stages or a lump sum on completion is up to you and the builder to agree. If you have grant approval the bank may give you a bridging loan to pay builder which you then clear when grant payment is made

farmerjj

Milked out wrote: »

The grants look for a paid invoice before paying out so most likely the builder will have to be paid up fully before any grant money comes in. How you do it be it in stages or a lump sum on completion is up to you and the builder to agree. If you have grant approval the bank may give you a bridging loan to pay builder which you then clear when grant payment is made

Banks don't do bridging loans anymore, don't know why they were fierce handy.

johnny122

farmerjj wrote: »

Banks don't do bridging loans anymore, don't know why they were fierce handy.

As far as I know they definitely do.

farmerjj

johnny122 wrote: »

As far as I know they definitely do.

Bank of Ireland weren't doing them back in feb, other banks might be.

Grueller

farmerjj wrote: »

Banks don't do bridging loans anymore, don't know why they were fierce handy.

They were a very small margin product for the bank.

inlooniest

Cheers for the help lads.