New-build contract example and payment schedule
A new build needs the contract route, design responsibilities and funding plan to work together. A payment schedule alone cannot resolve gaps between the architect’s design, contractor’s proposals, lender requirements and the work being bought.
Worked example only. These are fictional project details and amounts, not market rates or a completed agreement to sign. Adapt the scope and stages to the actual project, programme, cash flow and chosen contract.
Example contract arrangements
Project: Construction of one detached home to an agreed design, specification and external-works schedule. The fictional £250,000 contract sum is a total inclusive of any applicable VAT; no particular VAT treatment is assumed. Land, finance, professional fees and separately identified client purchases are excluded.
Contract and design route: Record who completes and coordinates each part of the design. Where the builder has design obligations, identify the exact scope and interfaces with the homeowner’s designers.
Complete document set: Identify the drawings, specification, contractor’s proposal, scope exclusions, allowances and external works. Clarify utility connections, drainage, landscaping and access.
Funding and inspections: Align the agreed programme with the lender’s drawdown process and any warranty-provider inspections. Record who assesses progress and the evidence needed; those appointments have their own requirements.
Site and procurement arrangements: Agree access, welfare, security, storage, temporary works, long-lead orders, ownership/insurance arrangements and responsibilities before occupation.
Completion and records: Define the contract’s completion process, testing, certificates, manuals, warranties where required, outstanding work and final account.
View an official contract sample
View JCT’s official Home Owner contract sample page (PDF). This shows the work-details section only; obtain the complete appropriate contract separately. Publisher copyright remains with JCT.
JCT’s contract-selection guidance begins with the procurement route and allocation of responsibilities. A new build may need a different form from a small extension, particularly where the contractor designs work or a consultant administers the contract. For Scotland or Northern Ireland, obtain the appropriate local form and advice. Read the publisher’s guidance.
Worked payment schedule — £250,000
The amounts below add up to £250,000. They illustrate a structure, not recommended percentages. Define exactly what each stage includes and how the amount is assessed and becomes due.
Identified pre-start commitments — £12,500
Named setup and procurement commitments, with evidence, delivery arrangements and agreed protections.
Paid to date: £12,500.Foundations, drainage and substructure — £37,500
The defined below-ground works are evidenced and any lender/warranty/technical hold points are addressed.
Paid to date: £50,000.Structural frame and walls — £50,000
The agreed structural stage is evidenced against the design and scope, with relevant specialist records.
Paid to date: £100,000.Roof, windows and enclosure — £37,500
The specified shell is weather-tight; interfaces and outstanding envelope work are recorded.
Paid to date: £137,500.First-fix services and internal work — £37,500
The listed first-fix work and relevant pre-covering checks are evidenced.
Paid to date: £175,000.Second fix and agreed external works — £50,000
The specified fit-out, services, finishes and external works are checked against the contract documents.
Paid to date: £225,000.Completion, handover and final balance — £25,000
Assess completion and the final account under the chosen contract, including records, outstanding work and agreed payment conditions.
Paid to date: £250,000.
Before using a schedule like this
Match every amount to the actual programme, procurement needs and value of the agreed work. A pre-start payment needs a named purpose and evidence; it is not automatically a safe deposit. Record invoice dates, payment terms, how progress is assessed and any final-balance or retention arrangements in the chosen contract.
Use the contract’s process for payment, variations, delays and disputed items. An inspection date or a photograph alone does not settle everything payable. Legal terms and remedies need advice on the actual agreement and applicable jurisdiction.
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