Create stage payment plans for building projects. Split project costs into deposit, interim milestones and completion payments that protect both you and your customer.
QuoteSmith generates branded PDF proposals with built-in payment schedules, milestones and terms. Your customers see exactly when payments are due.
Try QuoteSmith Free for 7 Days10-15% is standard for larger projects. This should cover initial material purchases and mobilisation. Asking for too much upfront can make customers uncomfortable and suggests poor cash flow management.
Stage payments should be triggered by reaching specific project milestones (e.g. "foundations complete") rather than calendar dates. This protects both parties -- the customer only pays for completed work, and you get paid when you deliver.
Always include the payment schedule in your written contract or proposal. Clearly state the milestone, the percentage/amount due, and the payment terms (e.g. payable within 7 days of milestone completion). This prevents disputes later.
For larger projects, consider holding back 5-10% as a retention payment, payable after a snagging period (typically 2-4 weeks after completion). This gives the customer confidence that any issues will be addressed, and motivates you to complete the snagging list promptly.
Stage payments are the standard way to manage cash flow on building projects in the UK. They protect both the builder and the customer by ensuring payments are tied to completed work, rather than paid entirely upfront or entirely on completion.
For builders, stage payments maintain healthy cash flow throughout a project. Material costs, labour and overheads do not wait until the end of a project -- so your income should not either. For customers, stage payments mean they are never significantly ahead of the work completed, reducing their risk if something goes wrong.
The right payment structure depends on the size and complexity of the project:
Professional proposals should always include a clear payment schedule. This builds trust with customers and sets expectations from the start. Use tools like QuoteSmith to generate professional proposals with built-in payment schedules, milestone descriptions, and terms -- giving your customers confidence in how the project will be managed financially.
Common questions about stage payments and payment schedules for builders.
A common schedule is 10-15% deposit upfront, then stage payments at key milestones (foundations, first fix, second fix), and a final payment of 5-10% on completion and snagging sign-off. For smaller jobs under £5,000, a simpler 3-stage plan works well: deposit (25-30%), midway (40-50%), completion (25-30%).
10-15% is standard for most building projects. This covers initial material purchases and mobilisation costs. Some tradespeople ask up to 25% for smaller jobs. Be cautious of asking for more than 25% upfront, as this is often seen as a red flag by customers and consumer protection organisations.
For any project over £1,000-2,000, stage payments are strongly recommended for both parties. They maintain builder cash flow and reduce customer risk. Payment on completion is fine for small, quick jobs but creates too much risk on larger projects.
Send a formal written reminder with a reasonable payment period (7-14 days). If still unpaid, you are within your rights to pause work -- this should be stated in your contract. Do not carry out further work while payments are outstanding. If the issue persists, pursue through mediation, solicitor's letter, or small claims court.
QuoteSmith uses AI to generate branded PDF proposals with scope of work, timelines and T&Cs.
Start Free 7-Day Trial