What is a typical payment schedule for building work?

A common schedule is: 10% deposit on acceptance, 25% at foundations/structural stage, 25% at weathertight/roof stage, 25% at second fix/services, and 15% on practical completion. This protects both contractor and client.

Should I take a deposit?

Yes - a deposit of 10-25% is standard for larger jobs. It covers initial material costs and demonstrates customer commitment. For small jobs under £500, some tradespeople skip the deposit. Always provide a receipt and include deposit terms in your contract.

What is retention and how does it work?

Retention is a percentage (typically 5%) withheld from each payment as security against defects. Half (2.5%) is released at practical completion, and the remaining half at the end of the defects liability period (usually 12 months).

What are JCT-style valuations?

Under JCT contracts, the contractor submits monthly applications for payment based on work completed. A quantity surveyor values the work, deducts retention, and a certificate is issued. Payment is due within 14-17 days of the certificate.

How do I protect against late payment?

Use a written contract specifying payment terms, invoice promptly, send payment reminders, charge interest on late payments (statutory right under Late Payment of Commercial Debts Act), and consider stage payments to limit exposure.

TradeCalculator

Payment Schedule Calculator

Split project value into milestone-based payment stages

Total Project Value

Schedule Type

How We Calculate This

Enter the total project value and select a payment schedule type. For standard schedules, set the percentage for each stage (deposit, milestones, final payment). The calculator splits the project value accordingly and shows the amount due at each stage. Retention percentage can be applied, showing how much is held back until practical completion and defects period.

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Last updated: March 2026

All calculations are estimates. Verify with your supplier.