Should I Pay my contractor in Installments?

Note: This is not financial advice.
If your project is likely to extend over one month it is reasonable, and probably desirable, to make interim payments. If you do, you may be able to negotiate a better price, but this must be agreed at tender stage. You could be asked for stage payment at completion intervals such as:

  • Foundations drainage and ground slab
  • Brickwork to roof and windows
  • Roof complete and services in
  • Finishes and completion
It is reasonable to hold back retention money, but only if agreed at a time of tender, 5% of each stage is normal. Be sure to agree a formula for what happens if work is completed out of the expected sequence. You can ask the contractor for a cash flow projection and if possible have it professionally verified.

Hold the contractor to the agreed programme and politely chase if the schedule is falling behind.

Record progress photographically and to avoid any time dispute include the day's newspaper in the foreground.

In general: -
  • Do not lend or borrow tools or ladders
  • Be certain who is responsible for site security and locking up
  • Make sure that any warranties for major appliances are in your name
Notice: This website is designed to provide you with general information only and does not attempt to give you financial advice on any particular aspect of home improvement or insurance related products. If you have any doubt about your specific finances consult a financial advisor.

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