How Much Deposit Should I Pay My Builder?

When building or remodeling, your contractor will need a deposit before beginning work. Sadly, some dishonest home builders attempt to make the most of clients by requesting more than they are lawfully entitled to. There are laws in the location relating to deposits and development payments for structural work. Here’s what you need to understand.

How Much of a Deposit Should I Pay My Builder?

This is a commonly asked concern and one that is simple to address since the Domestic Building Contracts (DBC) Act of 2000 states that:

  • You will be asked to pay no more than a 5% deposit for domestic structure work over R200,000.
  • For a structure agreement of between R30,500 and R200,000, a deposit can be no higher than 10%.
  • Deposits can be worked out for work costing less than R35,500.
  • “Costs” consist of all labour and products.

What About Progress Payments?

The DBC likewise lays out the schedule of development payments for domestic structure work. For brand-new structure work and other work surpassing R200,000 (labour and products) in worth, these are:

  • 5% preliminary deposit
  • 10% “base phase” (upon start of work) development payment
  • 15% development payment upon conclusion of the framing phase
  • 35% payment at the conclusion of the enclosed phase of structure work.
  • 20% at the end of the repair phase (after all cabinets, sinks, skirting boards, basins, and so on are set up)
  • 15% upon “useful conclusion” (when the structure is prepared to relocate to and all legal structure requirements have actually been fulfilled).

These policies have actually been put in place for your defense and are based on the affordable payments home builders require to fulfill their own commitments.

Your Building Contract:

Your structure agreement ought to include your preliminary deposit, development payments, and much more. Prior to signing a structure agreement, make certain it is:

  • It consists of the outdated signature of your professional and supplies an area for your signature and the date of signing the agreement.
  • provinces, with your name at the top of the agreement.
  • provinces the precise name of your contractor as mentioned on their professional license and their license number.
  • It consists of a complete description of the work that is to be carried out.
  • This includes strategies and requirements connected to
  • It consists of stipulations that detail any variations in the agreement that might take place.

Depending upon the nature and intricacy of your structural task, other details might be required as well. If you feel something has actually been excluded or are uneasy with the agreement, you have a five-day “cooling down” duration throughout which you can look for legal or other expert suggestions about the agreement.

Prior to picking a contractor, the very first thing you need to understand is that they are a certified expert. Certified home builders understand the laws and policies and have actually shown that they have adequate training and experience to construct houses according to South African building regulations and requirements.

To see more ‘price of’ guides visit the ‘Cost of homes services‘ page to see a full list.


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