Commissioner's blog: How much is too much to pay upfront?

This announcement is for: 
Consumer

Knowing how much to pay tradespeople up front, before the job begins, starts with knowing your consumer rights around job deposits, estimates and quotes – and knowing who you’re dealing with.

Tradespeople provide all kinds of work and services including building, electrical, plumbing and gas, re-roofing, tree lopping, concreting, household repairs and other manual labour work. Most tradespeople are honest and reliable.

But there are steps you can take to help protect yourself from misunderstandings about the cost of a job, being ripped off by con artists who try to charge you too much for a deposit, dodgy work, or payment demands for more than the original quote after the job is done.

Start by researching who you’re dealing with to make sure they’re reliable. Some tradespeople must also be licenced. You can search for licenced professionals such as electricians, builders or plumbers on the Consumer Protection website. 

Shop around to get at least three written quotes, from trusted personal recommendations or industry recognised tradespeople, to make sure you’re getting the best deal.

Provide the tradespeople with lots of information about the job you want done, so they can estimate or quote accurately. An ’estimate’ is only an approximate charge, a quote is an agreed fixed price.

When it comes to paying a deposit to get the work started, pay only a small amount to cover the tradesperson’s initial costs. Never pay for the whole job upfront. A small amount is no more than 10 per cent of the total job price. If you are entering into a building contract valued at more than
$7, 500, the builder is not allowed to ask for more than 6.5 per cent as a deposit.

Requests for cash deposits, payments in full before work begins or a refusal to provide a written quote are all red flags. Ask if the business accepts credit card payments as this could offer a charge back safeguard if the work is not carried out or is unsatisfactory.

Right now, the notorious travelling conmen known as ‘bitumen bandits’ are in WA, with Consumer Protection issuing a public warning last month, including naming eight companies and 13 individuals to avoid due to them breaking multiple consumer laws and threats to destroy completed work if invoices aren’t paid.

Take time to do your homework by researching tradespeople, getting three written quotes, being clear on what work you want done, and limiting up-front deposits.

For more information or assistance call Consumer Protection on 1300 30 40 54, email consumer@dmirs.wa.gov.au or visit the website www.consumerprotection.wa.gov.au

Consumer Protection
Media release
11 Oct 2023

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