Booking deposits?

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Anyone take a deposit before confirming a start date?

Up to now I've gone with a fairly typical 30% - 30% - 30% - 10% payment schedule for anything substantial with no upfront or deposits. There have been a couple of PITA late cancellations or delays, but no real issues.

I have a job due to start in a couple of weeks that's going to be delayed. Customer not getting organised, architect taking longer than they thought. Niggly stuff, completely out of my control though not a massive issue for me at the moment as I have other stuff to fill in with.

It has got me thinking though. Another time under different circumstances and it could throw a bit of a spanner in the works. Cash flow, delaying other stuff as a knock on, messing people I've booked about, plant hire issues etc.

So I'm considering going down the route of not booking a date until I have a deposit in the bank. 15% non-refundable if they cancel, treated as part of the job payment if all goes to plan, added to the job if the start is delayed by x amount of time. I'd only do it on jobs where more than a week's work was involved, or where I have to order something on account up front.

Having a scout about the 'net, and asking at the merchants it seems quite a few already work this way. Mostly it seems because of the 'once bitten twice shy' rule.
 
on a very large outlay contract we ask for a deposit on the start day, with a final payment on completion.
i do not like the 15% non returnable deposit idea and would not employ someone who wanted it.
 
imago said:
Anyone take a deposit before confirming a start date?

Up to now I've gone with a fairly typical 30% - 30% - 30% - 10% payment schedule for anything substantial with no upfront or deposits. There have been a couple of PITA late cancellations or delays, but no real issues.

I have a job due to start in a couple of weeks that's going to be delayed. Customer not getting organised, architect taking longer than they thought. Niggly stuff, completely out of my control though not a massive issue for me at the moment as I have other stuff to fill in with.

It has got me thinking though. Another time under different circumstances and it could throw a bit of a spanner in the works. Cash flow, delaying other stuff as a knock on, messing people I've booked about, plant hire issues etc.

So I'm considering going down the route of not booking a date until I have a deposit in the bank. 15% non-refundable if they cancel, treated as part of the job payment if all goes to plan, added to the job if the start is delayed by x amount of time. I'd only do it on jobs where more than a week's work was involved, or where I have to order something on account up front.

Having a scout about the 'net, and asking at the merchants it seems quite a few already work this way. Mostly it seems because of the 'once bitten twice shy' rule.
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You might get away with it as a builder..as a plasterer on domestics not a prayer I'm afraid!!!

Think its 1 of them just manage the percentage kind of thing 1 every now and then no biggy really if every other job then maybe mate!
 
I suppose it's horses for courses with the work type and job sizes, as I say I wouldn't do it for a small job.

malc said:
on a very large outlay contract we ask for a deposit on the start day, with a final payment on completion.
i do not like the 15% non returnable deposit idea and would not employ someone who wanted it.
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I usually have the first 30% in the first week of work, but that doesn't help if the first week is a month later than booked. I'd have no problem losing work over it, there's plenty about and it would all happen up front so no harm done. The other thing is, if someone wasn't happy with paying a deposit they'd only lose if they cocked up or messed about it'd be a fair indicator I wouldn't want to work for them. It'd sort the wheat from the chaff at an early stage.
 
Kitchens and bathrooms payable upfront so as any non returnable materials, I charge out 30% restocking fee and £280/man if the jobs gets cancelled within 24hrs of agreed start date, other than that I rarely take deposit, definitely not for skimming jobs but I imagine rendering is a different kettle of fish where you can have a bigger layout for mats and scaff
 
rendering jobs i take 30%deposit 1 week before start date. if large project its either 2 stage payments of 30% of take 50% half way through and 20% upon completion
 
@imago...

Just to throw it on its head though what about if your running late on a job and need to push your next job back a few days how would you deal with that with the same customer/s.?
 
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little story for you all.
a wealthy local builder handed me his cheque book at the completion of the works and told me to write my own cheque. he was watching as i wrote the cheque, " that not what you quoted me he said" as he rushed for his book of quotes. he could not believe his own eyes he had accepted the highest quote and not the lowest one.
 
zombie said:
@imago...

Just to throw it in its head though what about if your running late on a job and need to push your next job back a few days how would you deal with that with the same customer/s.?
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It's a good point, and whilst I can't say it'll never happen I do minimise the chances.

The first thing is I only have one job on the go at a time. I know plenty of builders that try to run two or three together, but that invariably bites them on the 4rse at some point, sometimes badly. The other thing I do is book jobs in a manageable way. So if I have an extension booked in, then I leave two weeks clear at the end of it before booking in the next job. That next job will be a smallish job like a kitchen fit, a bit of pointing etc. Doing it that way means that even if a job runs over a bit I'm still OK. It also means that I can move things forward or back to a certain degree if needed without causing me or anyone else a problem.

I know I could make more money by rushing around and stressing, but not enough to make it worth it to me.

If it's 'act of god' stuff for me or them, weather, injury, bereavement etc. then it wouldn't be a problem and I certainly wouldn't keep a deposit. I am only intending the deposits for large refurbs, extensions and the like, or as @zolco says, anything that's going to cost if there's a delay. If that delay is caused by the customer or someone else they've engaged then I would have no problem keeping the money. Say a drainage contractor they've arranged not surveying/working in time. An oak frame company they've booked not supplying when they said they would. Tree surgeons not turning up. The customer deciding to go to a wedding in Australia etc. etc.
 
Most builders just chuck a Labrador on site if they can't start straight away to do silly little things, so on paper they started lol
 
zolco said:
Most builders just chuck a Labrador on site if they can't start straight away to do silly little things, so on paper they started lol
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I can't be bothered with all that nonsense TBH. Maybe if I was in my 20s or 30s and trying to build a big business, but as things stand I just want to do a good job and make a decent living the easiest and most hassle free way I can. :descansando:
 
In a contractual way, it is acceptable to add a percentage to any PC sums (often stipulated by the client) in a contract, for attendances and such, dealing with specialists, etc. So I can't see that a 15% booking fee would be any different.
If you make a significant purchase like a car or some such, often you put a deposit on it, to signify an intent, many times this is non refundable ....I think that legally it might have significance....I think it's the law of tort.
 
Everyone works different I guess.
Building game is different as there's usually something out of your control ie architects or planning, customer changing mind etc.
We don't bother on domestic jobs and it works fine for us,if it's less than ten grand it's one payment, on completion,any more and it's stage payments.builders/developers we work for I just usually invoice on completion and they'll clear it at month end.
 
I never use to take deposits but I have started recently on slightly bigger stuff (not plastering related)

I think it does help with security a bit but depends on the job and the people :D
 
I always take a smallish fee up front,I've had it before when they ring up and try to cancel a couple of days before,when you;ve already got materials and labour lined up,i then give them that same money on the day we start,or knock it off the job at the end.I sometimes feel if they dont want to pay a small deposit up front,they're not serious or genuine,but once I expxlain it they mostly seem fine,if they're not,I walk away.I always take staged payments for big jobs,nearly got caught for 20k a year or so ago,lesson learned
 
ozzy said:
I always take a smallish fee up front,I've had it before when they ring up and try to cancel a couple of days before,when you;ve already got materials and labour lined up,i then give them that same money on the day we start,or knock it off the job at the end.I sometimes feel if they dont want to pay a small deposit up front,they're not serious or genuine,but once I expxlain it they mostly seem fine,if they're not,I walk away.I always take staged payments for big jobs,nearly got caught for 20k a year or so ago,lesson learned
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makes sense
 
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