Normal payment schedule to builder for extension

[Liz79]

Hi, think we've found the builder for our extension. He wants 50% upfront, 25% 6 weeks in and the rest on completion & our satisfaction. What's normal? I'm anxious about paying so much upfront.

Ouch! 50 is really really excessive. Ideally you should pay for work completed only in arrears, but some up front is common to pay for materials.. Also if he strings out the job you'll have paid 75% when he might have only done 1/4 of the work?
If you're not comfortable just say no, you don't want to end up being back on here in a couple of months posting one of those threads!

I'd say that the first 25% should be paid after a certain amount of work was completed, not after 6 weeks. I'd say 50% is pretty average, however if you're not comfortable speak to your builder and ask for a breakdown and other options.

We had a loft conversion. 15% up front it was and then the rest spread in chunks of5 - 10% over the duration of the works (10 weeks roughly) all tied in to completion of phases. E.g. Floor laid, windows in, electrics done. Don't think I would be happy with 50% up front.

For our extension we're paying in 9 instalments linked to a schedule of work.

DH is a builder specialising in extensions, he charges a weekly labour amount (which I think is the amount quoted for labour divided by number of weeks he expects the job will take) and then also invoices weekly for materials. If the job doesn't take as long as expected then the client pays the remainder when it's finished (or months later, when they've realised he won't do their next job while there's a balance outstanding. Sigh).

A reputable builder should have good enough credit to be able to invoice you for materials in arrears.

I don't know what is "normal", but my builder is billing me after he's completed each stage of the work.

He started on Tuesday of last week. I gave him no money upfront. Today (Thursday of week 2), he has invoiced me for work done on foundations up to damp proof course.

Then there are further staged payments as we go along. As PP says, he must have got those initial materials on credit.

My builder billed me monthly in arrears. This was on a 20 week job. I wouldn't dream of paying 50% upfront I'm afraid.

We paid ours for the labour and materials every fortnight. Nothing was paid in advance.

We paid weekly. Builders asked for 10% upfront but we didn't get round to paying it before they started. 50% is way too high!

I paid nothing upfront but was invoiced monthly based on the actual work done to that point less an agreed retention (2.5%) payable 6 mths post completion which was the agreed 'snagging' period. i picked a medium sized local builder who had a great reputation. They had about 30 permanent employees and then strong relationships with another 20 tradesmen. You need to pick your builder carefully - do your research and check out some references.

He gave me 2 references which I followed up & were both good. Turns out one is the structural engineer who did our supporting beam calculations, for an external wall that's coming down. I've just rung that one back & was told they paid him for labour every Friday, & when the bills for materials came in, they paid those directly to the suppliers. I will be having words tomorrow.

We did payment in stages.

1. Foundations dug and concrete poured.
2. Brickwork up to 1st floor
3. Brickwork up to eaves.
4. Roof and windows.
5. Internal work (electrics, plastering etc)

We saved money by fitting our own kitchen and bathroom as well as all internal painting. We also contracted a friend to paint the outside of the house.

We paid 20% upfront, then staged payments (there were about 20, linked to various stages of the build, with the final instalment only payable once we had signed off the snag list) for a 5 month extension project.

I think phased payments should definitely be linked to completion of actual work rather than time, and 50% upfront sounds too high.