The payment schedule is the only tool left in your hands once work has started. Pay more than has been built and you are financing the contractor — and you have removed the incentive that pushes him to finish. Pay less than has been built and he will stop, quite reasonably.
The single rule: payment follows progress, not the calendar. "The 15th of the month" pays for time that has passed. "On completion and approval of the plumbing" pays for work that was done.
A schedule that works
For a typical flat renovation — the ranges vary with scope and project type:
- Deposit — 10% to 20%. Covers setting up and ordering materials. Above 20% there is no justification.
- After strip-out and preparation — 10%.
- After electrical and plumbing first fix — 15% to 20%. A stage easy to verify.
- After waterproofing and the flood test — 10%. See bathroom waterproofing.
- After tiling — 15% to 20%.
- After plasterboard, skim and paint — 10% to 15%.
- After second fix and joinery — 10%.
- Final payment — 5% to 10%, after the snagging list is closed.
The final payment
This is the most important line in the whole schedule, and the first a contractor will try to shrink. It is what brings someone back to fix the twelve small items left over — the door that catches, the socket never fitted, the missing sealant.
If 100% is paid at handover there is no lever at all. Hold 5% to 10%, released once the snagging list is closed. See handover and construction defects.
Three further rules
- Every payment conditional on written confirmation that the milestone is complete — a short message with photographs is enough.
- Extras priced and approved before they are carried out, not accumulated into a bill that appears at the end. See variations and extras.
- Everything on invoices. Cash with no invoice effectively voids the warranty and the ability to claim.
When the work stalls
If the pace stops, do not pay the next milestone — that is the entire point of the mechanism. Record the state of progress in writing, ask for an updated programme, and point to the agreed delay compensation clause if the contract has one. Legal escalation is a last resort and an expensive one; a properly built payment schedule prevents most of them.
Note: this describes accepted commercial practice and is not legal advice. A contract of any size should be reviewed by a lawyer.
FAQ
Is a 30% deposit reasonable?
Not in an ordinary renovation. On a project with bespoke joinery or aluminium a higher deposit can be justified for that item, not for the project as a whole.
What if the contractor wants payment up front for materials?
Legitimate, provided the material arrives on site and is registered to you. Large items are better bought directly from the supplier.
How long to close a snagging list?
Two to four weeks on an organised project. Set it in the contract.
How we work
At Bramy Group payments are tied to defined milestones, including a final payment released only after the snagging list is closed. See contract with a contractor. Get in touch.