Hi All,

I am looking for a bit of advice regarding payment terms for SIP frames. I have received a quotation from a fairly large firm for a SIP frame for our new build house. Whilst I am happy with the price, I am a bit concerned about the payment terms. They require a 10% deposit and then require the full balance to be paid two weeks prior to delivery. So my questions are:

Is it normal for SIP manufacturers to require full payment prior to delivery?

If so, is there any way I could protect myself against the manufacturer going into administration?

I am aware that I could get protection by paying all or part of the cost on credit cards but I understand that this protection only extends to £30,000.

I have not taken out a warranty yet but I am planning to do so. I am unlikely to use an NHBC builder so the policy would likely be NHBC Solo or an equivalent third party warranty. Apparently the Solo policy does not cover losses due to contractors/suppliers failing but I am not sure if the third party policies do?

I would be grateful if anyone has any thoughts, ideas or experiences of the above.

Thank You,


  • Mark Brinkley

    It is very common for kit home/frame suppliers to require deposits and pre-payments, though by no means universal. Both sides are at risk on a large one-off contract like this. Have you expressed your concerns to the company? Have they suggested any compromise?

    One commonly-used routine is to lodge your money with a third-party, such as a lawyer, who will hang onto the money until you are satisfied that the frame has been delivered and properly erected (if that forms part of the contract). They are sometimes referred to as escrow accounts. This way the business knows you have the ability to pay them, and you hang onto your cash until their part of the contract is fulfilled. However, there is invariable a cost attached to this procedure.

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