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Safe payment plan for your building works
Structure your works payments in phases tied to verifiable milestones rather than dates, so the amount already paid always stays behind the work executed. This is the defence against the most common way building works go wrong: paying too much upfront and losing all leverage if the works stall.
The value agreed with the contractor, as per the quote.
The percentage the contractor asked for upfront. We assess whether it's within reason.
Enter the works value to see the recommended payment plan.
WHY IT WORKS
Why paying in phases protects you
The most common way building works go wrong for the owner isn't the price: it's the payment structure. Whoever advances a large slice of the value before the work is done loses negotiating leverage and, if the company stalls or fails, has little to recover.
The defence is simple and costs nothing: tie each payment to a concrete, verifiable milestone of the works rather than to a calendar date. You pay when you see the work done, never before. That way, at any moment, what you've already paid is covered by what's already been executed.
At the end, you retain a small percentage as a guarantee, released only a few months later, to cover defects that appear after handover. This tool builds that plan for you, tuned to the type and value of the works.
The principles we follow
- Payment by verifiable milestones (autos de medição), tied to real progress and not to fixed dates.
- Never advance the full amount, or a large slice of it, before the work is done.
- Retain about 5 to 10% as a guarantee, released after the period when defects can appear.
COMMON QUESTIONS
Frequently asked questions
- How much deposit should I pay a contractor?
- There is no fixed percentage in law for private works, but the prudent practice is to keep the deposit low: enough to reserve the schedule and first materials, rarely above 10 to 15% on a renovation or new build. A deposit of 40 or 50% is a warning sign, because it transfers all the risk to you.
- Why tie payments to phases and not to dates?
- Because a date passes even if the work doesn't advance. A milestone (infrastructure complete, roof up, works handed over) is only met when the work is actually done and you can verify it. Tying the money to the work keeps payment always behind execution.
- What is a guarantee retention?
- It's a small percentage of the value (typically 5 to 10%) that you don't pay on handover. It's held for a few months and only released if no defects appear in that period. It's your margin to make sure problems that only show with use get fixed.
- Are these percentages a legal requirement?
- No. In Portugal, the fixed-percentage regime exists for public works, not for private contracts between individuals and companies, where there is contractual freedom. The phases we propose are a recommended model, derived from good practice and the principle of always paying behind the work. Adapt them to your contract.
- What happens to my money if the company fails mid-works?
- It becomes a credit you have to claim in the insolvency proceedings, and the full amount is rarely recovered. Under the CIRE there are short deadlines to claim. That's why it matters so much not to be ahead on payments: the less you've advanced, the less you risk. Verifying the company's health before signing reduces the chance of getting here.
- Does this replace a building contract?
- No. This tool helps you structure the payments part, which should then go into the written building contract, with a description of the works, deadlines and guarantees. For high-value works, it's worth reviewing the contract with a professional or lawyer.
A payment plan only helps if the company is solid.
Run a full check before signing: insolvencies, court cases, debts, licences and director history in seconds.
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