Building Finance Question

[boxtops]

Hi, those who know...

We're having substantial building work done, including installing a new kitchen, and I agreed with the builder at the outset that we would make staged payments as the work progressed. He agreed that I could keep back a retainer until we were 100% satisfied and any snagging list remedied. The job is likely to finish during this coming week so he'll be asking for the balance. These days, what's a reasonable retainer? - is it still 10%?

[Zacs-Master]

How very sensible of you Boxtops. 10% is a little high. 5 to 7.5% is more the norm. I would just assess the situation i.e. If there is a lot of snagging / unsatisfactory items I would go for nearer 10% but if you have a good relationship and are generally pleased then go for 5.

[boxtops]

Thanks Zacs, that's really helpful. Thus far, we are pleased with what they've done - 5% sounds good to me.

[Maydup]

5% for 12 months is the norm on projects using a minor works contact, so he will be used to something around that level, if not for that long.

[boxtops]

Thank you, most helpful

[Bazile]

Just as a matter interest boxtops - how did you go about deciding on the builder you chose ?

We are thinking about doing some building work as well , but are anxious as to how to ensure we get a reliable and good builder

[boxtops]

Hi bazile,

I took three quotes from local companies, that's what I always do - and word of mouth is also a great tool. When you get the quotes, ask them to tell you about jobs they've done recently similar to yours, so you can sound those people out about their experiences. I saw work done by our builders before we asked them to quote, that put them on the list in the first place.

[Bazile]

Right- ho - thanks

[boxtops]

It's worth writing up a specification of what you want to have done, bazile, then you can give that to each of the builders when they come and view the potential job. We had a page of A4 with all the different take down/build up/ install items we wanted to have done.

[Bazile]

thanks again - where are you in the country , by the way ?

[boxtops]

we're in Kent.

[The Builder]

Just thought I'd put my tuppence worth in as well, Boxers.

I think retentions are an excellent idea. I've done that many times. Whenever I've worked with a standard JCT (Joint Standards Tribunal) contract, the Architect has agreed a 2.5% retention.
With a £100,000 job, that's fine. With smaller jobs, 2.5% would not be a decent enough amount to have any effect. In your case I do agree that 5% is much more sensible.

[Bazile]

Thanks - a bit too far for them to travel to the West Mids

[boxtops]

Thanks TB. They have nearly finished what we think to be a great job - it's the little things we need to check, once they've departed tomorrow!