Dealing With a Tradie For The First Time

varunynr on 11/05/2016 - 12:30
Last edited 11/05/2016 - 12:49 by 1 other user

G'day All,

Short story, I just got a new house and am getting a small kitchen installed. I have got the designs almost finalised with this small business (Basically one guy, he works from home which he rents, has a mobile number and a website, a facebook page with 38 likes to be precise). He quoted a good price and has asked me to pay upfront for material. I have even spoken to the material provider (wholesaler with whom he has a trade account). They will not provide me with the material as they only deal with Joiners (being a wholesale business).

My concern is:

1) What if I pay him the material cost and he never returns to do any work. He has agreed to share some sort of identification with me (for instance his driving licence). The material company mentioned that he has done business with them a few times and they will not sign up someone with the background checks (That being said he did mention that he only has cash account with them and does not have 30 day credit or whatever)
2) He prefers cash (like everyone does) but did mention that he is ready to accept by credit card for an extra 2% charge. How does that sound ? Can I charge back in case he doesn't do the work.

Now before barging as to why I want to work with him. I wanted to mention that his price is almost 30% less than traditional end to end joiners and I am looking for a bargain too. Need to cover myself off here and wanted to get opinion from others who would certainly have faced similar situations in past.

Thanks

• 

  the-mal on 11/05/2016 - 12:35

  +4

  What percentage of the overall cost is he asking for upfront? It's normal to pay some upfront, it's not normal to pay everything.

  Has he provided you with a written quote/statement of work listing what he's going to do and how much it's going to cost?

  He prefers cash (like everyone does) but did mention that he is ready to accept by credit card for an extra 2% charge

  Pay the extra 2% and use credit card. Give yourself some level of protection! He prefers cash because he doesn't want to pay tax on it.

  Make sure you ask for (and get):

  • A written quote
  • An itemised invoice for any money paid (with his ABN on it)
• 

  varunynr on 11/05/2016 - 12:51

  Good advice mal. Will note that. To answer your question he is asking for materials cost which he has to pay to the material provider upfront (as he has a cash account with them). It is looking like 50% of the total cost. The material arrives in 2-3 weeks and would be shipped at his address where he will work on it before he installs those at my place. Hope that helps.

  • 

    the-mal on 11/05/2016 - 15:38

    +1

    That's fairly normal for a small contractor. It's definitely not a red flag, usually the cheapest tradies will want materials upfront because they can't afford to wear the cost.

    Just make sure you have an invoice or full itemised quote and a statement of work (a small writeup listing the work he's going to do) before you hand any money over. Make sure it all has his ABN and/or signature on it. If he hesitates to provide you with this, thats a red flag.

    And I'd be upfront and mention to him that you'd prefer to pay with credit card so you have the financial protection. Again, if he tries to persuade you otherwise, it's a red flag.

    Lastly for ever bit of money you part with insist on a receipt and make sure it has his ABN on it. If he hesitates, it's a massive red flag.

    If he's fine with all of the above, I'd say he's legit.

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  Agret on 11/05/2016 - 14:31

  +3

  Make sure you get a signed contract of work to be done and the payment provided. This way you can take it to small claims if he tries to rip you off. I second the suggestion to pay the extra 2.5% credit card fee because then at least you can do a chargeback if he screws you over.

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  varunynr on 11/05/2016 - 16:10

  Perfect. Thanks Guys.