Payment Terms for Builders - what's the norm or fair?

[Metrobaby]

We're thinking of having a single storey large extension done. Can what percentage of the work is paid for what stage??

I ask this as I have picked a builder and he is asking £3k upfront to do permissions and architect drawings, another 40% upfront, another 40% when 50% of the work is complete and then the remaining 20% on completion. At first glance paying 80% of the price for only 50% completion seems a bit odd to me - but is the norm - or is the builder having a laugh?

Any advice gratefully received.

We had a big extension done last year with an architect project managing and a local team of builders. We paid them both separately - the architect's fees were a lot upfront and early on, as this is where they do most of the work.

The builders asked for payment monthly on average, between £5 and £12k each time. (Total builder's cost around £150k). There is a final amount that still remains unpaid by us until a few snagging items are sorted.

I don't think I really like the sound of your payment terms, I'd be a bit nervous.

Just asked DP (a builder/carpenter) and he reckons it all depends on what it is that he's having to pay for upfront. If there is a lot of bespoke stuff going on then yep, it could actually be reasonable (ie: timber conservatory or lashings of sash windows!) But, if it's (to quote DP) "just a load of bricks" - then no - that's not reasonable!

DP's standard contract is always picked over by clients and changed for each job - it's a two way process. Ultimately YOU are in the driving seat - it's YOUR money and YOU are the client! Although - your builder may have been stung in the past with clients who haven't paid. We have builder friends in London who don't have good contracts and have been left high and dry with no payments from clients after weeks of work.

You should check he's got trade accounts etc. As many of those who haven't got these do ask for way too much money up front. Trade accounts are quite hard to get now as credit checks are always done since the crash. If he hasn't got any - then RUN!
HTH