Deposit Percentage for Fencing Works

tomsco on 25/01/2018 - 12:59

Hey all, just wondering if I can get your input so I can no my negotiation limits.

Basically, I'm looking to get a fence installed. All up will be in the $10-$15k range.

Now my concern is that I have gotten three quotes, as well as viewed a few other companies T&Cs that all ask for a 50% deposit before job commencement.

The three quotes I've received, one is from a franchise, one is a reasonably sized business and the other is a smaller guy, but seems to have a good rep (referred by someone and have heard good testimonies).

As above, finding the 50% deposit weird, I did some Google-fu and found a few other bigger businesses also dictating 50% deposit.

Now on previous research, my understanding is that for works like this, they should really only need a smaller deposit. If it was just the small time guy, I'd understand (ie. might not have good credit terms with suppliers), but for bigger companies (that, even without legal teams, you would expect to not put a term in if it's not kosher) to also include a 50% deposit seems weird.

Anyone have any experience or thoughts? I'm in Vic by the way.

Thanks in advance.

Home & Garden

Comments

  • Nugs on 25/01/2018 - 13:06
    +5

    we have recently undertaken fencing in SA - same 50% deposit.
    it is a full fabrication job, so I guess they want to at least cover materials in case of default?

  • oscargamer on 25/01/2018 - 13:07
    +2

    50% is standard.

  • ihbh on 25/01/2018 - 13:08
    +2

    They need the deposit order the material - e.g. colourbond fencing and posts. If there were no deposit and you backed out after they ordered, they might end up with a particular colour/height fencing that they can't do anything with.

  • tomsco on 25/01/2018 - 13:25
    +3

    Cool. Thanks for the responses everyone.

    ihbh, you raise a good point. Although they may be able to get the items on credit, if they end up with custom stuff and I than reneg, than they're screwed over.

    • bobbified on 25/01/2018 - 14:04
      +3

      ihbh, you raise a good point

      I like how you've accepted the need to look at it from the company's perspective that everyone's pointed out (instead of taking the "me me me" attitude!) :)

    • BertieBrown on 25/01/2018 - 14:56

      Yeah, that's def part of it I'm sure, but another aspect would be trying to lock in the work with the customer before hand.

      Who did you end up deciding to go with?

      • tomsco on 25/01/2018 - 23:26
        +1

        Think I’m going with the smaller fella. Similar cost to the franchisee, but being referred by someone I know/trust helps. Plus I’m happy to help the small guy.

  • yoonibear on 25/01/2018 - 16:16

    We didn't pay for a tradesmen, but we hired the video/photo guys on a 50/30/20 (50% up front, 30% halfway through and 20% when they delivered the end product/service).
    From which quote to choose - I'd go with the smaller guy just because word of mouth means alot in the industry

  • Presence on 25/01/2018 - 16:26
    +1

    If you are really concerned you could ask to pay the supplier directly for materials. It's not an uncommon arrangement.

  • Stewardo on 25/01/2018 - 18:17

    Construction companies go bust all the time because of customers reneging on installed custom jobs, think about it, if they install 7ks worth of material it becomes worthless to them if you don’t pay. It’s not an item that could be repossessed and reused.

  • vinni9284 on 25/01/2018 - 20:05
    +1

    If you decide to pay the deposit, I would opt for a receipt CLEARLY STATING what works, materials, railing/plinths etc will be provided with obviously the remaining balance noted to be paid upon "Satisfactory" completion.
    Also if they have a website, you can read their T&C's
    If you are building a fence is adjoining a neighbouring property, in Vic you have to provide them "Notice to Fence" before you commence. If not, then you will find it difficult to extract your share from them after it gets built (Unless that is already organised or great Neighbours :-) )
    https://www.disputes.vic.gov.au/information-and-advice/fenci…
    Cheers

  • tomsco on 23/03/2018 - 07:40

    Ok, little bit stressed. Paid the deposit ($5k) and the guy, after stuffing around a couple of times, has said the they are going bankrupt.

    They have promised the deposit back within 2 weeks, so fingers crossed it goes smoothly.

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