Hi,
Doing my first ever home renovation job. Cost is around $50,000. One builder will do the job, hiring various tradies as contractors. Just wondering what is the usual method of paying for the job? As in what is a reasonable initial deposit percentage and how do I break the total cost down into co-payments so I am semi-protected if they run off half way through the job?
Thanks heaps in advance.
Hi,
I haven't signed a contract yet, in the process of preparing for one, and so thought I'd ask for some opinion as to what to be included in a contract and also the normal stages of payments so I can have something to say if asked.
In Victoria
Not a Master Builder I don't think… I'll check on that.
Oscar is right, your contract will have a schedule of regular weekly/fortnightly progress payments divided up & spaced out over the time span of the project. You can (and should) review this before you sign.
What does 50k get you for a home reno these days? Brick house?
Brick house. 50k doesn't get much but it's mostly outdoor stuff…
$50k is a small reno. Why not just organise your own tradies
It involves a new driveway, extension of existing single garage into a double garage, plus some asbestos issues along the wall, so I thought it's easier if one company does everything rather than coordinating a few tradies on my own…
Fair enough.
Why not just organise to pay the builder after each individual job is done eg when driveway concreted, when garage completed etc. Might be easier
Yeah I thought about that too, but it turns out that these jobs will occur at the same time, rather than one after another, because of the nature of the work involved. So in the end decided to get one building company to do it all so they can't blame each other if things go south…
You are basically paying someone to coordinate the contractors. You should get the contractors yourself, and pay someone to project manage. That way you make all the decisions, and everyone gets paid by you.
First thing OP will need is a clipboard…
Hope your not in a rush to get it all done.
Some suggestions below:
Stage the works and itemise them.
Apply a cost to complete each stage.
Check to find potential savings within each stage.
Negotiate with 4quotes or more.
Take lots of photos and measurements.
Note to ensure to know what you are paying for.
Mesh/ Reo/ Control joints.
Ask for photos to prove experience.
Try not to ever pay 100% of any stage until a certain time after job is complete "just in case". Try retain 5% or more until fully satisfied.
Tell them you expect to be invoiced/ notified of staged payments. No more than 1 payment per month. Set terms so they cannot demand for cash now.
Hope all goes well
If you can source materials cheaper (used). Maybe ask for labour only. And you pay for part of materials? Old stone?
Thank you for the advice.
Just wondering, what is a "normal" percentage for deposit for each job? And would tradies be happy to only get paid the remaining amount after the completion of the job? Recently I required some building inspection and pest control work, and both people demanded full payment before giving me their assessment (I assume that's to stop people from not paying). Is that the same with tradies? They won't be offended if I say I'd only make the full payment after each stage?
Thanks.
Totally depends on the contract.
I get this is new to you, but if the builder says it's a $50k job, be aware that $10k ish is his mark up. In other words, the asbestos man does his work and sends the builder an invoice for $5k. The builder then sends you a bill for $6k. A 15-20% mark up is usual. The garage man sends an invoice for $10k, you get a bill for $12k.
Given you are on ozbargain you don't like wasting money.
PLEASE get back to us BEFORE you sign.
Do not pay up front. Read the contract. Only pay when the work is done to a satisfactory standard.
Hi, so is it unreasonable for them to ask for a percentage as deposit before commencing any work? I will ask for the contract, but would like to know what is normal - I don't want to piss people off by asking something that is unreasonable. Would they normally expect to only get paid with the completion of each stage of the job? Thanks.
Usually i get invoiced a certain amount in advance to cover materials and labour
Did you miss the bit about it depending on the exact contract.
Generally a 5% deposit is required.
Google ' domestic building contract Vic section 40'
Hi,
OK, 5% sounds good. Thanks for the advice re: vic sec 40, I'll look into that.
You still haven't said which contract is being used?
Before you sign any contract get your solicitor to look st it first. Nasty small print look out for it.
Waste of time and money. If using standard contracts.
There is no nasty small print in these contracts.
Your post is irrelevant, incorrect and not helpful
PLEASE GOD tell me you have a written contract
Assuming you do, the stage payments will be specified in it
Which one? MB or other?
Which state?
And you read it before you signed? all about PC and PS items? and all the other things that may bite you……
and your builder is a Master Builder?