Renovation contract example and payment schedule
Renovation work often reveals conditions that were not visible when the builder priced it. A useful agreement separates defined work, allowances and genuine unknowns so that discoveries do not become unexplained extras.
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: Major internal refurbishment including a defined layout alteration, specified service upgrades, kitchen/bathroom installation and agreed finishes. The fictional £100,000 builder’s contract includes any applicable VAT; professional fees and expressly listed client purchases sit outside it.
Room-by-room scope: Create a schedule of rooms and tasks, linked to the drawings and specification. Record which existing elements stay and what is removed, repaired or replaced.
Opening-up and unknown work: Identify planned investigations and hold points. Record what the builder priced, the evidence required if hidden conditions differ, and how additional cost and time will be agreed.
Allowances and selections: List each allowance, included quantity/quality, fitting responsibility and adjustment method. Confirm selection dates for kitchens, bathrooms, flooring and specialist items.
Living arrangements and services: Agree working areas, access, dust protection, storage, welfare and planned interruptions to water, power, heating, bathrooms or kitchens.
Change and completion records: Use dated instructions, photographs and a change register. Define testing, making good, handover documents and the procedure for outstanding work.
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.
RIBA describes its Domestic Building Contract as covering domestic renovation, extension and new-building projects. The form still needs the correct scope, responsibilities and payment arrangements completed. A small repair-only contract is not a shortcut for a major refurbishment involving structural work or several trades. Read the publisher’s guidance.
Worked payment schedule — £100,000
The amounts below add up to £100,000. They illustrate a structure, not recommended percentages. Define exactly what each stage includes and how the amount is assessed and becomes due.
Defined mobilisation and orders — £10,000
Agreed protection, setup and named purchases, with evidence of what the advance funds.
Paid to date: £10,000.Agreed strip-out and enabling work — £15,000
The listed removals and enabling works are complete; discoveries are recorded before the next scope is agreed.
Paid to date: £25,000.Structural alterations and repairs — £20,000
The defined alterations and repairs are evidenced, with necessary designer/specialist input and agreed variations recorded.
Paid to date: £45,000.First-fix services — £20,000
The specified electrical, plumbing, heating and ventilation first fix is evidenced before covering.
Paid to date: £65,000.Plastering and surface preparation — £15,000
The agreed linings, plastering and preparation scope is complete; earlier checks remain documented.
Paid to date: £80,000.Second fix and agreed finishes — £15,000
The specified fittings, joinery, installation and finishes are checked against the room schedule.
Paid to date: £95,000.Testing, completion and handover — £5,000
The contract’s completion process, records, outstanding items and final account are addressed.
Paid to date: £100,000.
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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