Financial and Payment Policy |
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Stage payments and valuations Onis do not believe in waving a wet finger in the air when it comes to being paid and doubt you do either. You will be glad to know we follow a coherent and logical method of appraising how much you should be paying and when you should be paying it. On projects with a value below £500,000 we operate a scheduled payment system where you pay a certain known amount on established dates throughout your project. We provide you with a payment schedule before your project commences that shows you the date you are to pay Onis; the amount to be paid; the amount you have paid to date; the amount you have retained; the amount of VAT you are paying; the amount you have left to pay and the status of each payment. Our scheduled payments are normally in fortnightly tranches and you are reminded in advance of each one how much you are to be paying and when. If there are any variations to your project along the way (i.e. you change your choice of bath or kitchen) we incorporate the change in cost in to your remaining scheduled payments. As your project progresses this payment schedule doubles up as your statement of account keeping you abreast of the project's finance. On large projects (above £500,000) or bank funded projects we conduct valuations as opposed to scheduled payments. Periodically our QS will visit your project and review the work carried out as well as the materials on site and attribute a percentage of completion against every item of work that is being carried out in your schedule of works. These percentages are then added up and form the amount you are to pay in your next invoice. This can be fortnightly, monthly or what we both agree on.
Cash flow Many problems that occur on a home refurbishment project can have their origins traced back to poor cashflow. Frequently, a building contractor does not have the cash flow to finance a project and upon awaiting payment from the customer cannot pay for materials or labour and subsequently delays occur. We have a way round this. The first payment on our payment schedule is made up entirely of the value of any sub contractor deposits and all of your fixtures and fittings (such as your kitchen, flooring and sanitary ware) and is payable in time for all items to be paid for and delivered in keeping with the project programme. This means there is no delay to your project due to items not being ordered, paid for or turning up on time. This is our standard payment model and as well as making your project run smoothly also means you are not paying the cost of Onis borrowing from its bank (it is standard in the building industry for banks to lend to contractors at a high rate and for the contractor to then pass this charge on to you at an even higher rate. This can add a significant mark up to the cost of your project and can be avoided with the use of a sensible payment policy). Payment method At Onis we shy away from the administratively laborious form of payment known as the cheque and have fallen hook line and sinker for telephone and electronic payments by CHAPS (same day transfer) or BACS (the standard automated payment method). We do hope this is not a problem for you. They are simply quicker, easier to manage and tend not to get lost by the postman! Deposits In the event that you require a commitment from Onis for a specific commencement date we may ask for a non-refundable deposit to cover the cost of rescheduling the project team and any loss of productivity. Retention Up to 5% of the contract sum can be retained by you for a period of 3 or 6 months depending on the contract we both agree on. This retention is to cover any defects that may arise from our workmanship. |
