Building Deposit

[liamm]

We're building a Timber Frame house and having decided on the company and finalised the design we now need to pay 40% of the cost up front before manufacture starts which is fair enough. However, with the number of timber frame companies going out of business at the moment we're a bit afraid of paying over thousands of euro and then hearing the company has gone into liquidation. I heard that some people are now paying deposits like this to a solicitor who holds the money until the product is delivered.
Has anyone any experience of this? How does it work? How's solicitor is the money paid to? How much do they charge?
Cheers

 

[sas]

My brother in law is doing this at the moment. I won't be paying any construction related company up front in the current climate.

First off, the TF company will have to agree to it.

The money has been lodged with my brother in laws own solicitor. He effectively has signed a contract stating that on signoff from his engineer he will pay a set figure.

His engineer has agreed to be on site when the trucks arrive with the TF. He will inspect the frame at this time and then assuming all is well he will phone the solicitor to release the funds.

At this time the TF company will start unloading the trucks and away they go...

It can't be costing much because he wouldn't be doing it if it did.

If you are interested I can ask him how it all works.