Question 1

How much deposit should a builder ask for?

Accepted Answer

Industry practice varies, but 10–25% is generally considered reasonable for a deposit on building work. Asking for more than 25% upfront may deter clients. Stage payments tied to milestones (e.g. foundations, roof, completion) are the standard approach for larger projects.

Question 2

Does a builder's quote need to include VAT?

Accepted Answer

If the builder is VAT registered, the quote must state whether the price includes or excludes VAT. Many small builders are not VAT registered (turnover below £90,000), in which case no VAT applies. Always clarify VAT status upfront to avoid disputes.

Question 3

What happens if the building work costs more than quoted?

Accepted Answer

If you gave a fixed-price quotation, you must honour that price regardless of actual costs — this is the legal nature of a quote. The only exception is if the client requests additional work (variations), which should be agreed in writing at an additional cost before proceeding.

Question 4

Can a homeowner withhold final payment if work is defective?

Accepted Answer

A homeowner can withhold a reasonable proportion of the final payment for defective or incomplete work, but they cannot refuse to pay the entire amount if most of the work has been completed satisfactorily. The withheld amount should be proportionate to the cost of rectifying the defects.

Question 5

Do I need a written contract for building work?

Accepted Answer

While verbal contracts are legally valid, a written quotation or contract is strongly recommended. It protects both parties by recording exactly what was agreed. For projects over a few thousand pounds, a written contract with a clear scope, price, payment schedule and timeline is essential.

Builder / Tradesperson Quotation Template

Important Notes

Frequently Asked Questions

Related Templates