It’s important that you know how much deposit they’re legally allowed to charge you. That varies from state to state.
This is part 2 of Managing Payments with Builders with Stephen Janson
Bernadette: More on the topic of making sure that you manage the payment process with your trades and your builder. One of the things that can happen is you can pay too much deposit. So they try and front load their claims and they will claim a large deposit.
And so it’s important that you know how much deposit they’re legally allowed to charge you. That varies from state to state. And don’t pay any more than what’s asked of, you know that’s required of you. But the other thing is they often charge you for material. So how do you manage that?
Stephen: Well sometimes they do have to purchase materials up front. And again that should be an agreed amount. So you sometimes find this maybe the joinery or even if they’re supplying tiles and things like that they clearly have to buy all of those up front. And it’s not unreasonable that you should pay for those because you know if it can’t come out of the initial progress payment or if it’s something that extends over a period of time.
They would actually end up paying out of pocket before they could actually claim the money.
So it’s a case of again requesting for that in writing upfront and know what your upfront costs are. And as I say that would be more around tilers and if even if you’re a plumber who’s buying the sanitary ware where for you and things like that which it can be an expensive item it’s probably better to buy it yourself to be honest but anyway if you do do it that way, that’s something that you may be, you may require to purchase upfront. And therefore pay for it.
But again I think it’s important to make sure that you keep him responsible for any damage or anything like that that occurs.
Bernadette: So it’s reasonable to ask for photos of the material like if it’s in..?
Stephen: Yes. So again maybe using the plumber example quote – they like to have their their sanitary ware up in advance so they know that they can particularly for setting pans or in water systems to make sure that everything’s in its correct place. But you actually don’t want that sort of left lying around site because there’s a risk of damage and it won’t actually be installed until all of the waterproofing is done, the tiling is being laid, etc.. So it could be in some cases several weeks before you actually use it.
And I think it’s important not in under those circumstances that it’s probably kept off site. And again if that’s the case it would certainly wouldn’t be unreasonable to ask for photographs to demonstrate that he actually has purchased the goods that he said he has and that he hadn’t paid for something which you don’t have any evidence or proof or you could even ask him for a copy of the invoices just to confirm that those goods have actually been provided. It’s just a check. Checks and balances to make sure he’s being honest.
Bernadette: So if you have enjoyed this information and you’d like more, don’t forget to subscribe to our YouTube channel so that you’re notified when we produce a new video. And I hope that helped. Thank you.
Stephen: Okay. Thanks. Bye.