Avoid paying in advance when you commission a renovation project or other service. The safest option is to agree that invoices are paid only when the agreed work or part of it has been completed and approved.
Advance payment involves a risk for the consumer. In the worst case scenario, for example, the contractor disappears after receiving the money and the renovation is not carried out.
If you pay in advance, you lose the possibility to withhold payment, which is often your best protection in the event of problems.
If the service is deficient, performance is delayed or the work is not completed at all,
- the customer has the right not to pay the price of the service, or part of it, until the delayed work is completed, or the deficiency is rectified or otherwise compensated.
- By and large, the sum withheld must correspond to the significance of the deficiency or the delayed work. The entire payment can be withheld only if the deficiency is so substantial that it can be used as grounds for cancelling the entire transaction. If you withhold payment of the entire price on account of a minor deficiency, you may be liable to pay penalty interest and recovery costs.
If the company suggests advance payment as the only method of payment, it is worth enquiring about other options.
- If the company only accepts advance payment, you should consider whether the purchase can be made elsewhere on more reasonable terms.
- If the contractor proposes that you pay for the renovation work in instalments, the schedule of payments should be designed so that the bulk of the payments come towards the end of the project. In this way, you pay only for completed work. The clearest option in such a case is to pay as the work progresses.
- If payment after completion of the work is not acceptable it is better to provide, for example, a reasonable deposit rather than pay the entire price in advance.
If there is a particularly valid reason for payment in advance the seller should, in principle, at least in the case of substantial advances and in advance payment required very early on in the process, provide a guarantee securing the advance.
Risks arising from payment in advance can also be reduced by paying with a credit card, as such payments can be reclaimed from the credit card company. The credit card company is not, however, obliged to return more than you have paid. The consumer may also request a refund on debit card payments if the terms and conditions of the credit card company provide for this.
Defect in a service
Defects and delays in renovatiion
Renovation and contract