Stage payments for builders: a plain guide for UK extensions and conversions
On bigger domestic jobs, getting paid in stages protects you and reassures the client. Here is how stage payments usually work on UK extensions and conversions, and how to keep them straight.
What are stage payments?
Instead of one bill at the end, the job price is split into payments that fall due as each stage of the work is finished. The client only pays for work that has been done, and you are not funding the whole job out of your own pocket.
Typical stages on an extension
Every job is different, but a common pattern follows the build: foundations and slab, walls up to wall plate, roof on and watertight, windows and first fix, plastering and second fix, then completion. Some builders take a small deposit at the start, usually to secure materials or a start date.
Agree it in writing before you start
Put the stages, the amount or percentage for each, what "complete" means for each stage, and how quickly payment is due into the quote or contract. Say how extras and variations will be priced and paid. Clear terms at the start prevent most disputes later.
A note on the law
The Construction Act (the Housing Grants, Construction and Regeneration Act 1996) gives a right to interim payments on many construction contracts, but it does not apply to contracts with homeowners for work on the home they live in. On domestic jobs your written agreement is what counts. This is general information, not legal advice.
Keep track of what's invoiced and paid
For each stage, record when it was invoiced, how much, and when the money arrived. Keep extras separate so they don't get lost. A simple running statement you can send the client builds trust and gets you paid faster.
How HODHQ helps
In HODHQ, a quote can be turned into a stage payment plan. Each stage can be invoiced when it is reached, payments are recorded against it, and the owner can see at a glance what is owed on every job. Site staff never see the figures.
Common questions
How do stage payments work on a house extension?
The price is split into payments due as each stage is completed, for example foundations, walls to wall plate, roof on, first fix, plastering and completion. The stages and amounts should be agreed in writing before work starts.
Does the Construction Act apply to homeowners?
The Construction Act does not apply to contracts with residential occupiers for work on their own home, so on domestic jobs the written agreement between builder and client sets the payment terms. This is general information, not legal advice.
Last updated 28 September 2026. Written by HODHQ, built by Rich Brickwork Ltd.