Planning your development Planning your payments

Put enough money aside for every stage of your project

When you're improving a property, there are different stages involved. It's important to be aware of each stage and tie it in with when you pay for work. This can save you money during the project and means you have the cash needed to pay for the work. 

The four main stages for most projects are:

• Preparation
• First fix
• Second fix
• Finish

Depending on your project, each stage could mean different things. For example, if you're planning an extension, preparation might mean taking down an old building or wall and preparing the groundwork for foundations and walls to be built.

First fix could be adding in the unseen electrics and plumbing, and second fix could work like putting light switches on the now built walls or connecting up pipes to the mains. Finishing would be final decoration, such as painting.

At each stage, you may have to pay some money upfront, such as a fixed amount, say between £250 and £500, or a percentage, say between 5 and 10 per cent.

Never pay the full amount upfront. If you do, the builder/contractor could disappear with your cash or the items delivered could be faulty. Most companies and tradespeople are happy to be paid in stages or even when a job is completed to your satisfaction.

Planning your payments is important

Planning is crucial if you're borrowing money or drawing from savings. For example, if the total project is £30,000, you may need:

• £5,000 for materials at the start of the work
• £10,000 after six weeks
• £10,000 twelve weeks later
• the final £5,000 once the work is complete

Keeping your money in a savings account, or not paying the interest on the borrowed amount could save you hundreds of pounds to put towards extras later on.

Get guidance for local costs by speaking to friends and neighbours. Visit their improved properties and find out what they cost, how long they took and advice they have about contacts or things they would do differently next time around.

You can also get bespoke quotes. If they're significantly different from guideline costs, ask why and get a second and third opinion to be sure you're quoted fairly.