How to structure payments to builder for our kitchen extension

[MissPollysTrolleyed]

We're getting a small kitchen extension done - about £10k of building works. The builder we like has asked for a 25% deposit up-front. Obviously, we're not going to agree this but has anyone any experience of agreeing staged payments and how best to do this.

Time is of the essence for this project as I'm expecting a baby at the beginning of October so I want to structure payments fairly but so as to incentivise them to stay on the job and get it done as quickly as possible.

[Pendeen]

Did someone design the extension for you e.g. an architect?

Ask them for advice (for example I am always willing to help 'my' domestic clients regarding contractors and contracts even if I am not commissioned for tendering or CA duties) or if no designer try Homeowners contract which contains a provision for agreeing stage payments with your contractor.

[MissPollysTrolleyed]

Thanks Pendeen - we had an architect so I'll have a chat with him when he comes around with the Building Regs approvals to see what he thinks is reasonable. I also like the look of that contract and will ask the builder if he has his own preferred form and, if not, whether he's happy for me to get a copy of that for us to complete and sign.

[golemmings]

Our builder is asking for payments every 2 weeks throughout the build. We have yet to agree whether they will be equal or dependent on materials to be bought at each stage of the project... they don't start until sept.

[Fizzylemonade]

Mine wasn't an extension but a double garage conversion plus a few extra bits, cost £11,500 I paid £3k every Friday, they did the work and then I paid. I could therefore see what they had been doing all week when there were electricians, plumbers, joiners, brickies, and window fitters on site.

[myron]

Major renovation/extension works - 6 figure contract. Monthly payment in arrears subject to project valuation assessment and work done/materials used to date (minus a retention %). Payment terms/schedule mutually agreed in advance and confirmed contractually.

[dontstopbelieving]

I co own a bathroom company and we ask for 50% deposit if job less than 6 weeks away. Will he have to buy any kitchen units/appliances before hand? Does he have written terms and conditions? I think 25% very reasonable for price of your job personally. However make sure you ask for references and follow them up - ask them what payment structure they did.

[dontstopbelieving]

Forgot to say part of the payment should have a retention for payment once works not only complete but also tried, tested and snagged!

[SunAtLast]

We have just signed contract with builder to start in five weeks time to do extension.

We will pay 95per cent on completion.

We can choose to pay installments as we go if architect has checked work.

No deposit required.

[avivabeaver]

we paid for materials on sight of the invoices and for that exact amount.

we made a payment on the final day which covered everything except £1000. Builder told us to pay that after a fortnight when we had had a chance to look properly and make sure everything worked.