Can I pay a builder in stages?
How stage payments work, what milestones to use, and what protections to insist on.
Standard UK stage payment structure
For a typical £40,000 single-storey extension:
- 10% deposit on contract signing — covers initial materials + scaffold
- 20% on foundations + DPC — visible milestone, easy to verify
- 20% on shell complete (walls + roof on, watertight)
- 20% on first fix (plumbing + electrics roughed in)
- 20% on second fix (plaster, kitchen, bathrooms, decoration)
- 5–10% retention — held 2–4 weeks for snagging
Why stage payments work
- You see progress before you pay
- Builder gets cash flow throughout (vs working unpaid for 8 weeks)
- Disagreements caught early when there's still work to come
- Retention gives you leverage on snagging
What to insist on
- Written contract with clear milestones
- VAT invoice for each stage
- Bank transfer, not cash
- Inspection before payment — visit site and verify the milestone is actually complete
- Photo evidence for hidden work (foundations before backfill, electrics before plaster)
If you can't pay in stages
Some smaller projects (kitchen install, bathroom refit) finish too quickly for full stage payments. For these:
- 10–25% deposit on agreement
- Balance on completion + snagging walk-through
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Frequently asked questions
10% deposit, 20% per major milestone, 5–10% retention.
Reputable builders expect stage payments. Anyone who refuses is a red flag.
Visit site, walk through the work, take photos. Hold payment until you're satisfied.
Tell the builder immediately. Most will pause work rather than continue unpaid. Don't ghost — burns the relationship.
Related
Last reviewed: May 2026 · This information is general guidance and not legal advice.
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