Fair Payment Schedule For Builder

[mandimoo]

My builder is requesting the following payment schedule for a job anticipated to last 5 weeks, total cost approx £32k.

"deposit up front of £750 then then we instruct the architect.

We take 50% payment on completion of the shell, the 50% on completion/pass off by building control".

Is this a fair schedule, for me I mean?!

[andy-hughes]

I think that's reasonable.

It demonstrates commitment and good faith on both sides.

Get it in writing, and signed, and you are good to go.

[New Judge]

If he insists on those conditions (and they seem, on the face of it, reasonable) then I would also insist on some of my own, particularly to do with timing. I would suggest something like "work should be continuous for five days a week and last no longer than (say) six weeks (or whatever you deem appropriate). For each working day that the job extends beyond six weeks a penalty of 5% of the total price will be payable." I would get that in writing as well.

Builders have a habit of disappearing part way through a job, usually to start another one. A relative of mine has recently seen his job begin, the builder to take two weeks off (which was agreed beforehand) and has now developed a number of medical problems which are preventing him from working (despite having been seen in the town collecting materials from a builders' merchant).

[jackthehat]

Also withold 3-5% for a 3 month 'snagging period' after the job ends. This means that any immediately obvious faults will need to be put right before the money is released, or if you can't get the original contractor back, you can pay a.n.other for the corrections using that retention.

[The Builder]

I agree, that's a perfectly good arrangement.

Also, Jack mentions a retention. Also good practice.