Builder wants 50% upfront — should I pay?

No. 50% upfront is excessive for any project except very small fixed-supply jobs. Negotiate to 10–15% mobilisation + stage payments.

What if builder runs out of money mid-project?

JCT contract + reasonable payment cadence (not over-paid) limits exposure. Insurance backed warranties (FMB, NHBC, IWA) protect against insolvency. Never over-pay relative to work done.

How does retention work practically?

Each invoice: gross value × 95% = payable now. 5% accumulates in retention account. Released 50% at practical completion, 50% at end of defects-liability period after final inspection.

What payment schedule does Builderr use?

JCT MW standard: 10% mobilisation, monthly valuations less 5% retention, retention released in two halves at PC and DLP end. Customisable on smaller HOC projects.

Quick Answer

What Payment Schedule Should I Use for a London Renovation?

London domestic construction payment schedules typically run as: mobilisation deposit 10–15% (not to exceed cost of materials ordered), then monthly valuations or milestone payments through the build, with 3–5% retention held back for 6–12 months after practical completion. JCT contracts include defined valuation periods (28-day cycles). Never pay more than 50% before substantive work is done.

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Deposit and mobilisation

Mobilisation: 10–15% to cover insurance bond, materials ordered (windows, steels, kitchens with lead time), site set-up. Capped at value of materials physically on site or specifically ordered. Anything over 20% upfront is a red flag — builders cash-flow short-term work; large deposits suggest cash-flow problems.

Stage payments through build

Two common patterns: (1) milestone — strip-out complete, foundations complete, roof on, plaster complete, second-fix complete, practical completion; (2) monthly valuation — surveyor or builder values work done at end of each month, invoice for that value less retention. JCT MW uses (2). Each payment should match work actually done to date plus materials on site.

Retention and final payment

Retention: 3–5% held back at each payment, released in two halves — 50% at practical completion, 50% at end of defects-liability period (typically 6 months, sometimes 12). Protects client against defects emerging post-handover. Final payment only after all snags signed off and building control completion certificate issued.

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