General Contractor Guide for Payment Options

Do it Yourself Tips for Payment Options

Paying a builder can be very simple it is just a case of you being firm, and sticking to a few points.

1. Never pay a deposit (unless it is one man who you know to be reliable who can not afford the outlay of material i.e. relative, friend or a friends regular tradesperson).

2. Never pay for work that has not been done, (for example, if your walls are being stripped of old paper, do not pay for the re-papering until it is done).

The simplest way to work out how to pay a builder is by the size of the job. If it is a small job taking a week, it would be fair to pay him at the end of the week. If it is a three week job pay him for what he has done after 1? weeks and the balance at the end. If the job is going to take more than four weeks, then it would be fair to pay for what has been carried out every 1-2 weeks, if he walks off etc, you have not paid for any work not carried out.

The builder should issue you an invoice, and when paid, a receipt, you should have proof you have paid.

Quite simply when you accept the tradespersons quote and he starts the work you have a legally binding contract. This means that you must keep to your side of the bargain (i.e. pay him for his work) and he must keep to his side (i.e. he must do the work for which he is being paid).

This is true even if there is nothing or very little in writing. Although things are far easier to prove and you will have less problems if you make sure everything is in writing. Please see our legal section. When, if not before, the tradesperson starts work you should agree a payment plan immediately. This should be in writing and it is only fair that while one side is keeping to their part of the agreement the other should too.

If problems arise i.e. the tradesperson has not done his part of the contract or what he has done is poor, you are in a strong position as you hold the purse strings. Simply stress that the works have to be finished or put right before you will pay.

Equally, if at was agreed that you will pay at the end of each week for the works that have been done (according to your breakdown of cost that you insisted on at the outset, so that you could calculate easily what has been done) if that work is done and you refuse to pay until more is done, the tradesman will have the right to pursue payment.

It is important to note that the tradesperson will normally reserve their rights to all materials used until he has received payment. This basically means that he can take his materials back at any time should payment be unreasonably refused.

If you want a trouble free job then all this needs to be agreed at the very beginning and strictly adhered to by both parties.

The very last payment does not need to be paid as the last brick is laid or the last screw put in. You are entitled to have a small amount of time looking over the work done without the tradesperson looking over your shoulder. See our section on completion before making any final payments.

Simply state that you would like twenty four hours to look over the works with a critical eye so could they come back tomorrow? Any reasonable tradesperson will agree to this, especially if you have been making regular payments throughout the work. It would be wise to make this clear to the tradesperson once again at the start of the works so that it avoids any unnecessary hostilities at the end of the job.