How to pay a builder safely
The safest way to pay a builder is in stages: a small deposit if one is needed, then a payment for each part of the job once you've seen it's finished. Agree the stages and amounts in writing before work starts, never pay far ahead of the work that's been done, and choose a payment method that gives you a way back if something goes wrong.
A quick checklist
- Get written quotes from at least three builders.
- Agree the price, the stages and what "finished" means for each stage in writing.
- Keep any deposit as low as you can.
- Pay for each stage once it's done, not before.
- Get a receipt for every payment.
- Think about how you pay: some methods are much easier to get money back from than others.
Start with written quotes and a written agreement
Citizens Advice recommends getting written quotes from at least three traders. A quote is a fixed price for the work described; an estimate is a rough guess, so the final bill can be higher.
Before any money changes hands, put the essentials in writing: what work is included, the total price, how it will be paid in stages, and roughly when each stage should be done. A short written agreement settles most arguments before they start.
Keep the deposit small
Some builders ask for a deposit to book their time or buy materials. Citizens Advice says to push a deposit down as far as you can and not to agree to more than 25% of the job. Another option is to buy the materials yourself, so they stay yours if something goes wrong.
More on this in our guide to builder deposits.
Pay in stages, for finished work
Splitting the job into stages means you only ever pay for work you can see. A simple rule of thumb: at any point, the total you've paid shouldn't be more than the value of the work that's been done.
Each stage needs a clear end point that you can both recognise, like "first fix plumbing and electrics done" or "roof on and watertight". Our guide to stage payment schedules has worked examples.
Which payment method protects you most?
How you pay affects whether you can get money back if the job goes wrong.
| Method | Way back if things go wrong | Worth knowing |
|---|---|---|
| Cash | Very hard | Always get a dated, written receipt. |
| Bank transfer | Hard once sent | Check the account details with the builder directly before paying. |
| Debit card | Sometimes | Your card provider may be able to help get money back. |
| Credit card | Often | For items or services costing £100.01 to £30,000, Section 75 can make the card provider jointly responsible, even if only part was paid on the card. |
| Held payment (escrow) service | Built in | Money is held by a third party and only released when the work is approved. See escrow for home improvements. |
Card protection figures from Citizens Advice.
What if the work isn't right?
Under the Consumer Rights Act 2015, a trader must do the work with reasonable care and skill, within a reasonable time and for a reasonable price if none was agreed. If the work isn't up to standard, you can ask them to put it right at no extra cost, or ask for some money back.
Citizens Advice suggests collecting evidence (photos, receipts, messages), complaining in writing, giving the trader a fair chance to fix it, and then trying an independent dispute service or the small claims court if that fails.
How PayTrader handles this
PayTrader is built around paying stage by stage.
- You and your tradesperson agree the job as stages, each with its own price.
- You pay for a stage before it starts. The money is held by our regulated payment provider — PayTrader never holds it.
- When the stage is done, your tradesperson sends photos through the app.
- You approve, and that stage is released to them. If you don't approve or raise an issue within 14 days of the stage being marked complete, it releases automatically; raising an issue stops the clock.
PayTrader is launching in the UK soon, for a small fee on each stage.
Join the waitlistRelated guides
Common questions
Should I ever pay a builder in cash?
It's best avoided for anything but small jobs. Cash is very hard to get back if something goes wrong. If you do pay cash, get a dated written receipt that says what the payment covers.
Is it normal to pay for materials up front?
It can be, especially for materials made or ordered for your job. You can reduce the risk by buying materials yourself or paying the supplier directly, so they stay yours. Get receipts either way.
What if my builder wants full payment before finishing?
Paying in full before the work is finished removes your leverage if anything goes wrong. It's reasonable to ask to pay the final amount once the job is complete and any snags are fixed.
Sources
- Citizens Advice — Before you get work done on your home
- Citizens Advice — Problem with building work, decorating or home improvements
This guide is general information, not legal or financial advice. The figures and court limits above apply in England and Wales unless we say otherwise; rules differ in Scotland and Northern Ireland. If you're unsure about your situation, Citizens Advice can help for free.