How are payments staged on a renovation?
Against completed and inspected stages, not against dates. A typical structure is a small deposit for materials, then payments on completion of strip-out, structure, first fix, plastering, second fix and handover, with around 5 percent retained for six months after completion.
The principle is that money follows work. Each stage payment should become due when a defined, visible milestone is complete and has been inspected — not when a date arrives. This protects both sides: you are never significantly ahead of the work, and the builder is never significantly out of pocket for work already done.
A deposit is normal, but it should be modest and tied to something real, such as ordering materials with long lead times. Anywhere between 5 and 15 percent of contract value is reasonable for that purpose. A request for 30 or 50 percent before anyone arrives on site is a serious warning sign, and it is the single most common feature of the cases where homeowners lose money.
The retention matters more than people expect. Holding roughly 5 percent for six months after practical completion is what gets the snagging list finished — small defects, a door that sticks, a section of paint that needs redoing. Without a retention, those items compete with the builder's next project for attention, and they routinely lose. With one, they get done.
More on this in living through the works, or see all 42 questions.
Thinking about a project?
Tell us what you have in mind and we will come back with an honest view on cost, timescale and what is achievable at your address.