General idea on when to pay

Chris_5339762 · 08-05-2025 12:52PM #1

An interesting one. Dealing with some construction work to elderly parents who are understandably nervous and confused about forking over 25k especially since every single person we have ever had in has not done the work up to my fathers standards. Want to get an idea on WHEN payment should be made.

I've found a seemingly reputable outfit to do the work (better not say what) but the time has come to sort out when moneys are paid. This firms policy is that 50% should be paid on signing the contract, with the remaining 50% paid seven days before work starts. The boss doesn't want to budge on this after spending too long chasing customers who won't pay.

To me, this leaves us with unacceptable risk. They could walk off (they won't, they've been around 30 years) or we could get stuck where we can't get snagging done because we have no "final payment" to hold them to (much more likely). It also generally sits uneasy.

I reckon we should pay the final 5 to 10k AFTER the work has been done, and not until we are happy with the work done but this is apparently not the done thing thesedays. The customer seems to have to take all of the risk.

Is this the way the industry has gone? Am I being unreasonable? This company is well established for sure but it all seems weird.

baxterooneydoody · 08-05-2025 12:55PM

What's the work, if it's windows and doors or a product such as kitchens, wardrobes, furniture etc that has to be made in a workshop then the normal thing is to pay before instalation in a lot of cases, otherwise if its construction work then it would be unusual for a company to look for it all upfront

10-10-20 · 08-05-2025 01:55PM

It is unacceptable risk for the client alright but it's down to defects in the industry as whole as a cause. Tell him that you can't leave yourself open like that and that you'll only agree to retain 20% until work is completed. Try get him to agree to a finished standard (all walls painted and filled, gutters draining, no standing water - whatever…) after which the final payment will be made. That provides a clear objective for him to work to and provides you with sufficient protection (2.5 grand) of a stick.

As to how you'll demonstrate your honesty in the bargain, that's the crux.

Del2005 · 08-05-2025 06:32PM

Builders have their choice of jobs. Of course they are going to put all the risk on the customer if they have customers looking for them. They will get someone to pay up front if you don't, will you find another decent builder who will agree to your proposition?

SC024 · 08-05-2025 07:57PM

No, I'm working for a building contractor that's 30 years on the go & We don't do this. Window companies & Kitchens & certain specialist subbies work on those terms but No reputable builder does this crap on the full contract value. run away & get a proper builder

baxterooneydoody · 08-05-2025 07:59PM

Another point is if your father has had issues with "every single person," then he has either been very unlucky in his choice of tradesmen or he goes for the cheapest quote every time. The person doing the pricing may know about this if they know him and may be willing to lose the job if payment isn't forthcoming instead of having difficulty with your father down the line

General idea on when to pay

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