Stage Payments: How UK Homeowners Should Structure Them in 2026
A fair payment schedule protects both sides. Here's how to structure stages, retentions and sign-offs.
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Why stage payments matter
Cashflow is the #1 reason small builders go under mid-project. A good schedule keeps them solvent and you protected — the two are not opposites.
A fair 2026 structure
For most £40k–£150k projects:
| Stage | Trigger | % of contract |
|---|---|---|
| Mobilisation | Contract signed, start date confirmed | 5–10% |
| Groundworks complete | Slab down, building control sign-off | 15–20% |
| Watertight | Roof on, windows in | 20% |
| First fix complete | Plumbing/electrics tested | 20% |
| Second fix complete | Kitchen/bathroom installed | 20% |
| Practical completion | Snagging list agreed | 10% |
| Retention release | 3–6 months after PC | 5% |
Adjust percentages for project type, but never pay for work that isn't done or inspected.
Things to never agree to
- More than 15% before work starts
- Weekly "drawdowns" not tied to milestones
- Cash-only payments (you lose all recourse)
- Releasing retention on day one
Use a written schedule
A one-page schedule signed by both parties is enough for most domestic jobs. Build Price IQ's payment schedule tool generates one in 30 seconds.
When things slip
If a stage runs late, don't release the next payment early as a favour. It removes the only lever you have. Talk, document, and only release on completion.