ᐅ Advance payment for the window installment (or window payment)

Created on: 7 Jun 2023 16:54
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Bayernbors
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Bayernbors
7 Jun 2023 16:54
Hello everyone

Our general contractor informed us that the window manufacturer is offering a discount and wants to pass it on to us. This discount only applies to orders confirmed and paid for before the end of this month.
We are still far from the stage of window installation (we are just starting).

What risks are associated with making an early payment for the windows before they are actually installed in our house? Are there any ways to mitigate these risks?

Thank you very much
Best regards
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guckuck2
7 Jun 2023 17:00
If the discount is really that good, you might wonder why the general contractor (GC) doesn’t go ahead and secure the discount themselves.

If even the professional doesn’t want to do it, why should you?
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Bayernbors
7 Jun 2023 19:11
That is a completely different perspective. However, the general contractor (GC) may have their own reasons that do not apply to me. These could be, for example, cash flow problems or something else.

I do not have cash flow issues, but other risks might arise for me.

I am mainly concerned about the risk that the GC or the window manufacturer could become insolvent before the windows are actually installed. I am not sure if there is any protection in place for this or if there are other risks as well.
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Allthewayup
7 Jun 2023 20:20
Under no circumstances should you pay upfront. A reputable window supplier would never require this. To save a small amount of money, I definitely wouldn’t take that risk.
kati13377 Jun 2023 21:04
Bayernbors schrieb:

That’s a completely different perspective. But the general contractor might have their own reasons that don’t apply to me. It could be cash flow issues or something else.

If the general contractor has cash flow problems to the extent that they can’t cover payment for the windows of a single-family house, you probably already have a problem anyway.

Carefully ask the general contractor again if they can provide you with a copy of the offer so you know it’s legitimate. You can say that several people have advised you against making payments in advance.
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WilderSueden
7 Jun 2023 22:47
Bayernbors schrieb:

What risks are associated with paying for the windows so early, before they are actually installed in our house? Are there any ways to mitigate these risks?
Firstly, there is the risk that the general contractor (GC) might go bankrupt in the meantime. In that case, you could end up in a dispute with the insolvency administrator over the money. As has been mentioned, normally a GC would cover the costs upfront and keep the discount for themselves in such a situation.

Secondly, you are ordering windows based on the plans. Masons are not necessarily known for millimeter-precise work. While this is ultimately the GC’s responsibility, in the worst case, two windows might not fit properly.