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Homeowner guide

Payment & works schedule guide

Use this as a reference when reviewing a builder's payment schedule. The right schedule protects both sides — you pay only for work that's been done and signed off, and your builder gets paid promptly for genuine progress.

Homeowner protection

Homeowner protection guide
A payment schedule alone doesn't protect you — use these UK 2025 norms to spot red flags before you transfer any money.

Typical UK deposit is 10–15% of contract value, released on signing to cover initial materials and mobilisation.

On smaller trade jobs (single bathroom, boiler, rewire) up to 20–25% is acceptable where the trade is buying fittings up front — but ask to see supplier invoices.

Never pay more than 25% before any work has started or materials have arrived on site.

Hold back 5% retention against snagging until all defects on your snag list are cleared.

On larger projects (£100k+) it's normal to hold half the retention for a defects period of 3–12 months after practical completion, to catch settlement cracks and faulty fittings.

Use our Snagging Inspector before releasing the final stage payment.

  • Asked for cash-only payments or transfers to a personal account.
  • Deposit over 25% before any materials are on site.
  • No written contract or no agreed payment schedule.
  • No proof of public liability insurance (£2m+).
  • No Companies House number for a limited company builder.
  • Pressure to pay the final stage before snagging is signed off.
  • Refusal to provide a VAT invoice when registered.

  • All snags walked, listed in writing, and agreed.
  • Building control sign-off issued (where required).
  • Gas Safe and Part P certificates received.
  • FENSA / CERTASS certificates for windows.
  • Boiler commissioning certificate and benchmark filled in.
  • Manuals and guarantees collected (boiler, kitchen, appliances).
  • Retention released only after defects period (commonly 5% for 3–12 months).
Disclaimer: This guidance reflects UK industry norms in 2025. It is not legal advice. For large projects, take legal advice on the building contract (e.g. JCT Home Owner) and consider an escrow or stage-payment service.

Recommended payment schedules

Standard extension or new-build

6 stages

Single/double-storey extensions, garden rooms, small new-builds. Contract values £25k+.

1
Deposit — materials & mobilisation
Released on contract signing. Avoid deposits above 10–15% — UK guidance treats higher up-front payments as a risk flag.
10%
2
Groundworks & foundations complete
Released after building control sign-off on foundations.
20%
3
Superstructure & roof watertight
Walls up, roof on, openings closed. Inspect on-site before approving.
25%
4
First fix & plastering complete
Pipework, wiring, ducting in place behind walls; plastering signed off.
20%
5
Second fix & fit-out complete
Sanitaryware, sockets, doors, kitchen/bathroom fitted. Snag list raised.
20%
6
Snagging & final sign-off
Always retain at least 5%. Released only after written sign-off.
5%

Loft conversion

5 stages

Dormer, hip-to-gable, mansard, Velux conversions. Contract values £30k–£80k.

1
Deposit — structural materials order
Steels and structural timber are long-lead items.
10%
2
Structural works & dormer complete
Steels installed, dormer built, roof made good.
25%
3
First fix & insulation complete
Pipework, wiring, insulation, fire-rated plasterboard up.
25%
4
Second fix & staircase complete
Stair fitted, doors hung, sanitaryware in.
25%
5
Decoration & final sign-off
Retention covers paint defects and minor snags.
15%

Kitchen or bathroom refurb

4 stages

Single-room refurbs where the builder isn't buying the units. Contract values £8k–£25k.

1
Deposit — first-fix materials
Higher deposit acceptable on small jobs where the trade buys plumbing/electrical fittings up front.
20%
2
Strip-out & first fix complete
Old units removed, pipework/wiring relocated, walls/floors ready.
25%
3
Installation complete
Units, worktops, sanitaryware fitted and connected.
35%
4
Snagging & final sign-off
Tiling grouted, silicone, paint touch-ups, certificates handed over.
20%

Roofing & external works

3 stages

Full re-roof, flat roof replacement, rendering, driveways. Contract values £5k–£20k.

1
Deposit — materials order
Tiles/slates and scaffolding hire booked.
25%
2
Roof stripped, felted & battened
Half-way milestone — visible on-site progress.
50%
3
Completion & sign-off
Final tiles, lead-work, flashings, scaffold down, guarantee issued.
25%

Works milestones — what good looks like

1

Pre-start

Contract, payment schedule and programme of works signed by both parties. Building control / planning approvals in place. Builder's insurance certificates supplied.

Red flags
  • • No written contract
  • • Deposit over 25% before any work
  • • Builder won't provide insurance documents
2

Site set-up & strip-out

Welfare, skips, scaffolding, dust protection in place. Existing structure protected.

Red flags
  • • Site left unsecured at end of day
  • • No dust sheets / floor protection inside
3

Structural works

Foundations, steels, load-bearing alterations. Building Control inspections signed off before backfilling or hiding the work.

Red flags
  • • Foundations covered before BC inspection
  • • Steels installed without engineer's sign-off
4

Watertight / shell complete

Roof on, openings closed, internal areas dry. Natural payment stage.

Red flags
  • • Asked to pay before the roof is fully closed in
  • • Visible water ingress
5

First fix M&E

Plumbing, electrical, heating in walls and floors. Take photos of every wall before plastering.

Red flags
  • • No photos of routes
  • • Electrician/plumber not NICEIC / Gas Safe registered
6

Plastering & ceilings

Boards up, skimmed, dried out before paint or second fix.

Red flags
  • • Second fix happening on damp plaster
  • • Cracking at junctions not addressed
7

Second fix & fit-out

Doors, skirting, sockets, switches, sanitaryware, kitchen units, flooring.

Red flags
  • • Damaged finishes accepted without note
  • • Appliances stored on bare plaster floors
8

Snagging

Walk the job with the builder. List every defect, agree a fix date. Retain ≥5% until snags are cleared.

Red flags
  • • Builder pressing for final payment with open snags
  • • No retention held back
9

Handover & documentation

Building Control completion certificate, electrical (EICR / minor works), Gas Safe, FENSA, product warranties, workmanship guarantee.

Red flags
  • • No completion certificate
  • • Verbal guarantees only — get them in writing

When your builder sends a schedule

You're not obliged to accept it as-is. You can edit any stage and send your version back for the builder to accept or reject. Both sides have to agree before any work starts.