Payment Schedule Calculator

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.

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.

Retention is a percentage (typically 3-5%) withheld from each payment as security against defects. Under JCT contracts half of the retention is released at practical completion, and the remaining half against the certificate of making good, issued once the rectification (defects liability) period has ended. On the JCT Standard Building Contract 2016 the default Rectification Period is 6 months if the Contract Particulars are left blank (clause 2.38); 12 months is commonly specified instead, but that is a choice made in the Contract Particulars rather than the form default.

Under JCT 2016 contracts the contractor submits interim applications based on work completed at each Interim Valuation Date. A quantity surveyor values the work and deducts retention. The due date is 7 days after the valuation date, and the final date for payment is 14 days after the due date (per JCT 2016 and the Construction Act 1996, as amended). A pay-less notice, if any, must be given no later than 5 days before the final date for 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.