We recently broke ground on our new home. Our builder is asking for a 500 dollar advancement to help him out (probably for his own day to day bills). Our builder was slow to start with anyway. We did check refs before we went with him, and all checked out okay. What do you think? Also, would you give him the money? The money would come from the constructions loan.
2006-08-23 16:15:49 · 13 answers · asked by halo 1 in Home & Garden ➔ Other - Home & Garden
My husband said he was having to use it to pay personal/business bills. This is not money for the house. I understand people have to make a living, but I just don't know.
2006-08-23 16:32:28 · update #1
make sure that you get a written estimate and a contract before you give any money
2006-08-23 16:22:19 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I hope you have a contract saying how much he is getting paid. If you do, then subtract the $500 from that amount as part of his pay. If not then beware, he may keep this practice up the entire time. I wonder why he wouldn't have money in his business account to take care of day to day expenses. My uncle is a contractor and I have dealt with this all my life. He always has a little extra cash to pay any excess bills not related to his clients own home. You have to watch some of these guys. There are always a few bad ones that will try to take advantage of you. Stick to your contract, if extra expenses occur for the house closer to closing time then deal with them then, but for now keep your eyes wide open..
Don't forget to write a check, or get a receipt so you have a record of the advance
2006-08-24 03:15:51 · answer #2 · answered by country girl 5 · 0⤊ 0⤋
If it's just $500 he may be running a little low on funds till his next advance. It has happened sometimes prices go up with notice. We ask for 1/3-1/3-1/3 down when we build a home or do any construction work. That way money does not come out of our pocket. (we were screwed twice) but won in court. So we did get our money back, but you figure being a contractor building hundred thousand dollar homes and a homeowner....get screwed once and you're not likely to do it again.
I wouldn't be concerned as long as he shows up everyday. If you give him the money and he doesn't show up the next day, I would not do it again, until it is time to be paid.
2006-08-23 16:28:09 · answer #3 · answered by rdhedhottie 5 · 0⤊ 0⤋
Normally, with a construction loan, the contractor only gets "draws" when certain stages of the project are complete and someone from the Bank has inspected the job. Check the draw schedule on your contract & see if he's entitled to any money yet.
If you want to be nice & advance the guy $500 - get it in writing that you're giving him the $ and what exactly it is expected to cover. Be wary, though, if this becomes a habit.
2006-08-23 16:26:05 · answer #4 · answered by Quarter Midget Mom 5 · 0⤊ 0⤋
Given the total cost of a new home, $500 is no big deal. So long as you have a contract with your builder and he signs paperwork to let the advance be taken out of his total final payment you should be safe.
However, since it is a construction loan, your bank should be making the call.
2006-08-23 16:27:22 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Generally builders give you a quote. They never know exactly how much things are going to cost so they work out an average and guesstimate!
If you think your builder is on the level ask him to set you out an itemised bill and justify his request for more money. If he can't do this to your satisfaction you should say no and put your project on hold until you can find a builder who is capable of sticking to his estimate!
2006-08-23 16:23:14 · answer #6 · answered by Gillipoos 5 · 0⤊ 0⤋
The builders usually end up with our excess payments.
Be calculative about disbursements only upto the jobs done during the completed period. Every stage if you are paying more, the total will show that the contractor has to pay in the end.
The associations may offer the prescribed rates for various labour works and you know the material costs
2006-08-23 16:21:27 · answer #7 · answered by adapoda 3 · 0⤊ 0⤋
I would talk to an attorney and have a contract created. Then, if I advanced them any money, I would make sure to get a signed receipt that clearly states this was an advance. But really, talk to an attorney. Lots of people have been burned by contractors that "checked out".
2006-08-23 16:21:52 · answer #8 · answered by hop0409 5 · 0⤊ 0⤋
You seem new to building your own home. If you live in the USA may I suggest you hire a home inspector to follow the construction of your home. He will check it at different stages to make sure the work is being done correctly. You really need to do this to protect your home investment. Make sure he is ASHI certified.
2006-08-23 16:31:12 · answer #9 · answered by lily 6 · 0⤊ 0⤋
a contractor works off of installments most 25-50 % up front , then 25% after the sheetrock in install then the rest when it's finished-- do not give in too his problems we all have them make him stick to the contract--or you might find yourself without money an unfinished house and court dates to get him to do his job
2006-08-24 00:20:21 · answer #10 · answered by Ladder Captain-29 5 · 0⤊ 0⤋