Paying Landscaper

[Feradd]

Hi,

I have a landscaper to come and do some paving in my investment property next week. He has asked if I can pay him now for the materials.

Just wondering if this is standard practice? I would usually pay for these things on completion. Nothing is to stop him doing a runner. I found him on service seeking and the reviews were good however he's not a well known landscaper so there is a possibility to fear the worst as his business doesn't yet have a reputation to tarnish.

Can you please give me your opinions. I have some emails with quote of work with him asking for the deposit for an audit trail.

Regards
Fergus

 

[wylie]

Why not offer to pay once the pavers or other materials have been delivered to your property? That way, if he never comes to do the job, you have the materials that you've paid for.

 

[MRO]

I would pay once the goods have arrived on site. IF he does a runner you still have the pavers and can get someone else to do the job. I don't think it is too unusual to pay on delivery.

Alternatively order and pay for the pavers yourself and just employ him to do the labour component.

 

[Hodge]

Do you know where the guy lives at least?

 

[Feradd]

Thanks guys for your suggestions.
I'm going to try to pay the supplier direct and have them delivered on the day he starts.

Yes, I actually do have his address so I guess I can locate him if need be.

Cheers
Fergus

 

[missmonopoly]

He may be just starting out in business and not have the cashflow to pay for the pavers up front.

If he is a one man show this may be the case. If he has good references then you could give him a go.

If you order and pay for the pavers up front yourself you may get them cheaper and then just pay him for the labour.

This may work out better for you because you won't be charged extra for him organising the pavers for you.

 

[Ace in the Hole]

How much will the pavers cost?

 

[DaveM]

Typical of hand to mouth trades who have no cashflow.

Maximum 10% deposit to start, progress payments of 30% once goods arrive onsite, 40% once the job is completed, 20% once any issues are attended to. Avoid making final payment 5 or 10% as its easy for them just to not show up to fix issues if the final amount is too small.

If he does require materials paid upfront, then pay the suppliers invoice directly so at least you have the goods onsite if he does a runner.

 

[Scott No Mates]

I am with Dave here, the OFT prescribes the maximum amount of deposit that a builder/trade can require at the start of the contract. This is a sign of goodwill on the owner's part - the landscaper doesn't know you from a bar of soap either.

Refer OFT website - Clicky

Deposit
You cannot request a deposit of more than:
5% where the contract price exceeds $20,000, or
10% when the contract price is $20,000 or less.

 

[jim1964]

Alternatively order and pay for the pavers yourself and just employ him to do the labour component.

This is the choice i would take,then just pay the labour component.If he has a issue with this,alarm bells should start ringing.

 

[The Fence]

Im a landscaper and have yet to find any supplier who give trades a discount.

It's cut throat business in pavers/landscaping materials and therefore I direct the owner to purchase the materials (after giving them the quantities) and I quote the remaining labour and other incidentals required such as cement, sand etc.

Its much better for me and the customer has more "ownership" of the job.
Plus, they like to choose the pavers anyway so why bother trying to make a cut on pavers?

 

[marg4000]

We have no problem paying towards the cost of materials while a job is in progress.

We make sure we never pay more than value that has been delivered, keeping a healthy margin in our favour.
Marg

 

[pinkboy]

As I work in an entirely different industry, and rarely don't deal with the public, I find the whole idea of a 'deposit' and 'progress payment' very interesting. All jobs I complete we have to basically pony up the whole cost of the job including all wages, materials and hire costs - and then carry this amount for 30-90 (and beyond ) days until payment.

I think if a business has to get you to pay half of the job even before starting, they either have cash flow issues, been burned many times (or burnt hard once or twice), or have a chance at a runner.

I think by offering the token 10% deposit in good faith would be the most I would pay. Obviously if you ask them to supply materials expect to pay a premium as they have to make a margin on this too!

pinkboy

 

[weg]

Husband who is a landscaper doesn't take any money upfront.

His conditions are, he orders materials and gets payment just after delivery but before he starts the job - the customer gets notice of delivery and is told to have payment ready.

 

[The Fence]

Different rules adjudicate for different states regarding payments for trades.

Deposit
You cannot request a deposit of more than:
5% where the contract price exceeds $20,000, or
10% when the contract price is $20,000 or less.

 

[Rolf Latham]

Nothing is to stop him doing a runner. I found him on service seeking and the reviews were good however he's not a well known landscaper so there is a possibility to fear the worst as his business doesn't yet have a reputation to tarnish.

likewise........... many cases of tradies not being paid a brass razoo after work completion.

As the others have said,get your own materials for a number of reasons

ta
rolf

 

[Scott No Mates]

If you quibble over the deposit, which is legally able to be required by the contractor, then what chance has he got of getting his final payment either? (Provided of course that they must have a licence if it is a trade which required licensing).

 

[missmonopoly]

I agree with Rolf, sometimes the tradies get ripped off too.

Being in the trade business we rarely ask for a deposit up front and if we do it is only 10%.

We have completed jobs in the past and delivered the invoice for payment to be told
* I'll pay in a few weeks, i'm just waiting on some money to come in
* I'll pay you in installments of X amount each week for the next 5 weeks

and this is after they have signed the written quote which details the terms and conditions for payment!

The tradie is often taking the bigger risk by taking on a job without a deposit, they are paying for all the materials, wages, etc in the hope that the customer will pay on completion. If the customer does'nt pay then the tradie doesn't even have the ownership of the materials as they are at the customers property.

I think a fair deposit is reasonable, not 100% payment up front but something that makes both parties feel safe.

 

[The Fence]

The tradie is often taking the bigger risk by taking on a job without a deposit, they are paying for all the materials, wages, etc in the hope that the customer will pay on completion. If the customer does'nt pay then the tradie doesn't even have the ownership of the materials as they are at the customers property.

Agreed, that's why I don't supply materials.

Also,there are other ways to "recoup" IYKWIM.

 

[Rolf Latham]

I think if a business has to get you to pay half of the job even before starting, they either have cash flow issues, been burned many times (or burnt hard once or twice), or have a chance at a runner.

yours arent Joe average though - most of yours would be corporations -some of which can be right old hard nosed 180day punters

ta

rolf