It is possible the value of the window is significantly higher than the labour cost to install, if the windows are a straight like for like with existing ones (the size is the same and it is a quick replacement).
Some businesses won’t commence fabrication of works unless the cost of the materials are covered. This is standard practice across the trades industry so that they are not left with an unsaleable product should a customer pull out after work commences for a custom fabrication (many windows in older homes and some newer homes are custom sizes). Asking upfront for cost of the windows would be reasonable to ensure the business isn’t out of pocket for a customers change in mind.
We have had custom security screens made and install and needed to pay about 80% of the total installed price for this very reason. We had to either accept this arrangement and have the screen company we wanted to use with good reputation… or go somewhere else with an unknown company.
If you are concerned, the window company you plan to use will possibly accept this arrangement…full payment of windows at engagement and labour cost on install. You might find you are paying most of the cost upfront especially if that in the second paragraph is correct.
Think you’ve the nail on the head, almost all the cost is for the production and supply of windows (simple like for like replacement) so instalment costs are a fraction of costs.
We recently ordered replacement timber balustrade for our home, all custom made and non standard dimensions. The supplier was a well known local joinery, with owner to install. The deposit on an approx $5k order was 20%. Direct deposit preferred, I paid the deposit with CC. The final payment on completion was paid by EFT to avoid the CC surcharge. The order was more than 6 weeks late. Not a criticism of the supplier. It would have been more stressful if the cash in full had been paid up front.
$10k per your order is a large amount to be out of pocket. Especially where there is an install component at the end of the job, irrespective of how small that part of the cost. For us it’s more than the annual maintenance budget for our property. When paying by CC Charge backs are time limited. They may not offer a remedy if delivery is delayed.
We have had extensive large down to small scale work done over the last decade and I have never been asked to pay 100% up front. The most we have ever paid up front was 20% for a large order of custom made items.
If it were me, I would be looking elsewhere if the business will not accept the 20% deposit.
An issue which may not be so important to you is that any warranty may start from the time you paid for the goods because the receipt is your proof of purchase.
I would not trust these as a definitive source of factual information. I would ask the business for references to jobs they have done similar to yours. Go and have a look, and talk to those customers. If the business will not give you these references, run!
In NSW, the Home Building Act (Sect 8) says that the maximum deposit for residential building works is 10%. This applies to all contract values. Your windows would fall under this. I think you are in Victoria. There may be an equivalent law under Vic legislation.
Please note, I am not a lawyer but have some experience in the building areas.
Thanks B-Man, yes they are about to install (and everything is proceeding nicely)- but it is still good to know this. If I find any equivalent provisions in Vic legislation I’ll let the group know.
