Browse Forums Kitchen Corner 1 Aug 21, 2018 2:20 pm We paid a deposit on a quote and have now received the final contract. This states 85% of the balance must be paid prior to delivery to store ($24K), I'm not comfortable paying this before we even see our kitchen. What if their business goes bust?! Is this normal practice? It would have been nice to know this before we paid almost $3k deposit. Re: Question on payment schedule for new kitchen 2Aug 21, 2018 2:36 pm CathyG Is this normal practice? It would have been nice to know this before we paid almost $3k deposit. It can depend on the size of the company. Smaller ones might not have the cash-flow to hold such a liability on their books, so they get you to pay up front so the materials can flow in to start the job. Bigger companies might have the capacity, but need customers to commit so they can’t skip out before the job is done, leaving them stuck with stock they cannot move - especially if your kitchen colours are not a standard or neutral. Irrespective of the above, I think the $3K might have covered some design costs, but as they did not declare their full deposit requirements, you might be able to negotiate some of that money back if you decide to back out now. Of course, you might find other companies will require the same large upfront payment, so you would be no better off. Re: Question on payment schedule for new kitchen 3Aug 21, 2018 2:49 pm I have recently had new kitchen put in on 30% deposit and balance on completion on a renovation. It all went well with no issues. I think 85% is a red flag for me, particularly as they have not flagged it to you before. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Question on payment schedule for new kitchen 5Aug 21, 2018 2:57 pm building-expert I think 85% is a red flag for me, particularly as they have not flagged it to you before. To counter building-expert, I have just spend nearly $75K on joinery, and paid 100% in advance for each component as the work progressed. However, I live in a small country town and reputation is everything here, so we felt comfortable with our relationship and that our money was safe. Re: Question on payment schedule for new kitchen 6Aug 21, 2018 3:11 pm No problem if they declare payment terms upfront, then you can shop around and compare, but to come up with 85% upfront after the deposit is paid I would not be comfortable with. There are three possible outcomes: 1 it all ends well-customer takes a risk 2 it all goes pear shape- customer looses 3 Customer walks Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Question on payment schedule for new kitchen 7Aug 21, 2018 3:15 pm CathyG I rang him and he said it's a standard HIA contract which I will check out myself later. I do feel comfortable with the business so that is something. Not sure about the contract, but to me it is all about the relationship. That comes down to comfort, communications and trust. Re: Question on payment schedule for new kitchen 8Aug 22, 2018 9:37 am Yes we all have to trust but also have to be careful. Being careful means not to pay too much up front. Even the most reputable companies can fail and when they do there is no warning and if you have paid too much upfront you will loose. I would try to renegotiate terms for comfort. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: Question on payment schedule for new kitchen 9Aug 29, 2018 11:23 am I would be wary of paying 85% before even seeing your kitchen. This should be all outlined in the contract before paying the deposit. When we do kitchens our payment structure is, 10% Deposit 20% Progress payment on site measure/ordering 50% Progress on installation of cabinets 20% Final payment once everything is finished Cutting Edge Kitchens and Cabinet Making http://cuttingedgekitchens.net.au http://www.facebook.com/pages/Cutting-Edge-Kitchens/290484196676 Mobile : 0419 430 575 PH: 9452 4772 Fax :9452 4772 cuttingedgekitchens@outlook.com regardless, your contract stipulates a payments schedule and SOPA doesn't give provision to that scenario. Your contractual terms appear to stand. Hence get a lawyer, it… 4 11780 There is no reason why building contract reconciliation cannot be done prior to handover, if the builder won't do it get someone to do it for you. Why would you pay for… 3 6632 1) I had requested R6 ceiling insualtion batts, however I noticed that on some areas there are huge gaps which will allow hot air to sweep in, and also noticed black/grey… 0 3476 |