Payment schedule for building work

[Adam]

I'm about to agree to a loft conversion which will total over £40k. I've never had work done to anywhere near this value so I'm a bit out of my depth as to how the builder expects to be paid. I'll ask him how he usually operates over the weekend when I give the go ahead but what's a typical payment schedule?

The work will take 6 weeks, involve major structural work and will need architect/structural engineer reports. It will not require planning permission (it's covered under permitted development) and will involve turning my loft in to 2 good sized bedrooms plus an en suite. The builder has his own team and will act as the project manager as well as providing the architect and structural engineer.

 

[SC0TTRS]

Well, when I had building work done on my house (nothing like 40k) I didn't give the builder an penny until all the work was completed.

Even with that amount I still would be reluctant to give anything...hear many horror stories in regards to builders unfortunately...hope he's a well know, reliable builder and recommended by countless others.

 

[branddaly]

When we had our previous house renovated we used a small local firm, so they didn't have enough cash flow to complete the work and bill us at completion.
Our schedule was based on completed works (they did have credit with suppliers for materials) less a retention of 5%, billed every other week. Due to the nature of the work, it was fairly easy to identify if the work had been carried out (sub floors replaced, damp proof completed, plastering...etc). Definitely do not expect to pay them in advance for anything.
The retention was paid after the works were completed, once we were all in agreement that all snagging had been completed.

 

[Adam]

Even with that amount I still would be reluctant to give anything...hear many horror stories in regards to builders unfortunately...hope he's a well know, reliable builder and recommended by countless others.

Yes we live in a cul de sac and he has completed loft conversions for 4 of the 10 houses similar to ours. I have spoke with one couple of couldn't speak more highly of him and my partner spoke to another couple who let her see the loft.

We are in no doubt that he is the right person to be doing the job.

 

[SC0TTRS]

Yes we live in a cul de sac and he has completed loft conversions for 4 of the 10 houses similar to ours. I have spoke with one couple of couldn't speak more highly of him and my partner spoke to another couple who let her see the loft.

We are in no doubt that he is the right person to be doing the job.

Sounds like he's the man for the job! It's always good to speak with others that used them, and seeing the work first hand also.

 

[Martynt74]

When we got our work done (around £30k) we got a very specific breakdown from the builder of the work to be done and a payment schedule.

I can try and dig it out and send it you if you want?

EDIT - Had a look and i dont have any emails that old. I must've had a mass cull at some point!

 

[Aberfala]

When we had our previous house renovated we used a small local firm, so they didn't have enough cash flow to complete the work and bill us at completion.
Our schedule was based on completed works (they did have credit with suppliers for materials) less a retention of 5%, billed every other week. Due to the nature of the work, it was fairly easy to identify if the work had been carried out (sub floors replaced, damp proof completed, plastering...etc). Definitely do not expect to pay them in advance for anything.
The retention was paid after the works were completed, once we were all in agreement that all snagging had been completed.

Same for us when we had our extension done.

 

[a1ex2001]

Our builder was obviously too trusting, we agreed no payment plan and he'd been on the job over a month before he asked for anything! I'd agree the payments in advance don't pay for anything upfront an ensure you keep a substantial retention until you have the building regs sign off etc.