Maximum Deposit for Airconditioner Installation in NSW?

affable on 09/10/2017 - 14:32
Last edited 09/10/2017 - 15:02 by 1 other user

To anyone in NSW who has had an air conditioning system installed, what deposit did the installer require? My installer now wants a $6k deposit on a $9k install (large 3phase ducted system), however I thought in NSW the max deposit was 10% ?

eg {NSW Fairtrading](http://www.fairtrading.nsw.gov.au/biz_res/ftweb/pdfs/About_us/Publications/Home_building_contract_5000_to_20000.pdf] , or is that just for structural work (however air conditioning is mentioned on page 5)?

I've actually used this installer previously about 2 years ago and back then he did himself out of a $3k job by fixing our old system. Back then he was going to walk away without charging me a cent for half an hours work, so I figure he's trustworthy? Yet the size of the deposit and him pushing back the installation date by 2 weeks just 2 days prior to the original date has had me question his trustworthy-ness.

On WP someone suggested he may be chasing a deposit due to having to pay the invoice for the a/c unit prior to installation due to the installation delay, however he is delaying, not me.

Home & Garden

Comments

  • thord on 09/10/2017 - 14:47
    -1

    10% cap on deposits for projects both under and over $20,000 as of June 2014.

  • whooah1979 on 09/10/2017 - 14:48

    however I thought in NSW the max deposit was 10% ?

    Only 10%?

    It's up the company or person that's providing the service/ goods to decide how much deposit they want. It's then up to the client to either accept, reject or negotiate a different amount.

  • Halo375 on 09/10/2017 - 14:54
    +1

    If possible - could you buy the air conditioner yourself so it releases him from the financial risk of you not accepting the unit or cancelling your order? Could be a better way for you to reduce your risk as well. No way I'd pay that much upfront.

    • whooah1979 on 09/10/2017 - 15:03

      No way I'd pay that much upfront.

      It's either pay up or sweat.
      http://mobile.abc.net.au/news/2017-03-01/sydney-summer-the-h…

      Sydneysiders have endured their hottest summer since records began, with official data revealing records across the city were smashed during the 2016-17 season.

      • Halo375 on 09/10/2017 - 15:14

        I'm absolutely not denying the need for AC this summer - just saying they might want to try to find a way to reduce their financial exposure. Never hurts to ask.

    • affable on 09/10/2017 - 15:06

      Thanks for the suggestion, I don't think that's going to be possible, he probably already has it considering he's now suggested a large deposit. I guess I could ask for the unit to be delivered, however I think that will be a chicken/egg issue - pay first or drop in a/c first!

  • whooah1979 on 09/10/2017 - 14:57

    I've actually used this installer previously about 2 years ago

    Two years is a long time. He could have been buried by a few clients during that.

  • akyeeeahdude on 09/10/2017 - 15:42
    +2

    A deposit of that size is pretty alarming. I think he has a cashflow problem.
    I'd never pay 67% upfront. My dad once paid 75% for some roofing work. The roofer then started making excuses like a delay in getting the parts, then eventually started claiming he had a nervous breakdown and then he disappeared never to be seen again.

    I got my Dad to follow up with the franchise group and eventually they agreed to do the work.
    It wasn't easy and ended up being done four months after the agreed upon date.
    Large deposits to tradies - never again.

    • whooah1979 on 09/10/2017 - 16:06

      On a side note. We had work done this year. Five tradies $10k + $4.5k + $5.4k + $1k + $700.

      Only the $1k wanted a deposit for the full amount.

  • djkelly69 on 09/10/2017 - 16:18

    Can you put on a credit card (so you can do a charge-back if he does a runner or whatever)?

    • affable on 09/10/2017 - 16:55

      Good idea, however he's only provided bank details. I'll get back to him and suggest this.

      • Slippery Fish on 09/10/2017 - 17:03
        +2

        I find if your upfront with your concerns of it being a huge sum to just hand off they will usually work with you as it's in both party's interest to come to a solution everyone is happy with.

        I'd personally be saying I'll deposit the full value of the aircon Infront of you when you bring it over and then the rest after the install.

  • Davo1111 on 09/10/2017 - 17:07
    +3

    why not chat with him? If it's a cashflow issue you could offer to pay the supplier directly, or have a cheque for $6k as soon as the airconditioner is inside the property.

    Probably tired of people delaying on paying him while hes $5k in debt

    • Stewardo on 09/10/2017 - 22:42

      Exactly, it’s a two way street, I once worked for a company that went bankrupt twice because expensive custom items were manufactured and installed and never paid for by clients. Smaller sole traders might not have the resources to install 10 units on credit, id get him to write down all the parts he needs and pay for it myself and have it delivered straight to my house and then give him 10% of the labour.

  • garetz on 09/10/2017 - 17:37

    I wouldnt trust anyone who required a deposit that high, that definitely means he is on the verge of bankruptcy or huge cashflow problems. He could take your money, declare bankruptcy then your an unsecured creditor. Find someone else.

    • whooah1979 on 09/10/2017 - 18:22

      cashflow problems.

      That sums up about every sole trader and small business that operates on credit.

  • Fudnut on 10/10/2017 - 11:34

    Just had a $7000 system installed by a small business I contacted on the phone. Was billed for it 2 weeks after install. No deposit required. Rural NSW

  • affable on 15/10/2017 - 15:18

    Just an update. I suggested I would be prepared to bpay 50% on delivery of the boxes, or 10% on CC over the phone. He ended up saying that as long as I bpay on the day of install that is fine, no deposit required. Weird!
    Thanks to all who gave helpful suggestions, hopefully all goes smoothly in a week's time…..

    • affable on 23/10/2017 - 09:29

      Installation currently underway on the rescheduled date with $0 deposit. Phew!

      • affable on 31/10/2017 - 15:01

        ended up being a nightmare, still continuing. sigh, should have walked.

        • ihbh on 18/11/2018 - 17:09

          What happened in the end?

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