STOP – DON’T PAY THAT DEPOSIT !

Every week (almost) on the TVOne show Fair Go we see and hear of people who pay a deposit to a “reputable” tradesman for work to be done on an older person’s property. Only to see and hear that the whole thing has gone “pear-shaped” and that the customer has been left out of pocket with the work either not done, goods not supplied or a small portion of the job started and never completed.

When this happens the issue often becomes a civil dispute, and it is difficult to get the Police involved. The Disputes Tribunal can be brought in to play but even if the findings are in your favour, getting a settlement and your money back is not guaranteed. In many instances the tradesman simply disappears, declares bankrupt or becomes insolvent (in the case of a company), closes down and reappears later under a new company name. The question is, how to avoid being caught out?

When you need a job done, do your homework.

If you are offered a ‘cheaper’ job, there is a reason! If you are asked for a sizeable deposit, there is a reason!

Usually, the sizeable deposit is linked to the tradesman having limited or no financial resources. He is relying on you to fund the job before he starts. All too often your deposit may have been ‘frittered away’ on other costs before he even reaches the point where he might start work on your job. This behaviour is not uncommon.

If you want a job done, offer a deposit of no more that 10% with follow-on regular payments or a part payment plan based around work completed. These can be considered as “progress payments” and are considered to be quite normal practice in most construction or installation type projects. Also, never make the final payment until the work is completed, you are happy with the workmanship and any Code of Compliance Certificates or similar have been handed to you by the relevant authorities.

You might have to pay a wee bit more to work with a reputable, well-established tradesman or firm, but you may well save a lot of your hard-earned cash by doing so. And remember, never pay a large deposit or for the job in total from the beginning. It may well lead to financial disaster.

Terry Hemmingsen

President