← Homeowner advice
Deposits and Stage Payments for Building Work
Payment terms should support reasonable mobilisation without leaving either party exposed far ahead of completed work.
BuilderFind editorial · 6 min read
Understand the deposit
A deposit may cover booked time or ordered materials, but the amount and refund position should be written down. Large unexplained cash advances are a warning sign.
Define measurable stages
Use stages that can be seen and inspected, such as foundations complete or roof watertight. Avoid calendar-only payments that arrive regardless of progress.
Keep a final balance
A sensible final payment after completion and agreed snagging gives both parties a clear route to handover. Keep invoices, receipts and variation approvals together.