Stage Payments in a Self-Build in Ireland — Milestones, Retention, and the 5% Rule
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Stage payments: foundation, wall plate, roof, weathertight, first fix, second fix, completion. 5% retention held until snag closure.
Stage payments in a self-build: foundation, wall plate, roof, weathertight, first fix, second fix, completion. 5–10% each, plus 5% retention. The exact percentages vary by contract. 5% retention is held until snag list is closed. Most contracts release half at handover, half 6 months later. Never pay in advance of work done. Never release all retention until snag is closed. Always have the Assigned Certifier inspect before each stage payment. The lender will also require a valuation before releasing the drawdown. The RIAI Standard Form of Building Contract 2012 defines the standard payment schedule and retention.
When this matters most
You're planning the payment schedule.
When this doesn't apply
The build is finished.
Sources
RIAI, Form of Building Contract 2012. https://www.riai.ie/
Frequently asked questions
When do I pay stage payments in a self-build?
At milestones: foundation, wall plate, roof, weathertight, first fix, second fix, completion. 5–10% each. 5% retention held until snag closure.
What is retention in a building contract?
5% of each stage payment is held back. Released at snag closure (half at handover, half 6 months later). Protects the client against defects and unfinished work.
Should I pay in advance of work done?
No. Never. The contract should not allow it. Pay on completion of each stage, with the Assigned Certifier's inspection and the lender's valuation.
When this matters most
You're planning the payment schedule.
When this doesn't apply
The build is finished.
Where to go next
Next decision
The next step in your build sequence.
- Appointing a Main Contractor in Ireland — The Contract, the Insurances, and the Programme →
- Choosing a Builder in Ireland — The 10 Questions That Sort the Field →
- Final Inspection in Ireland — BCAR, Certificate of Compliance, and What Gets Signed →
- Self-Build Programme in Ireland — Gantt Chart, Critical Path, and the 9–15 Month Reality →
- Snag List Process in Ireland — The Walk-Through, the 60–180 Items, and the Fix →
Branch into
Adjacent decisions at the same stage.
- BER Assessment in Ireland — When to Get One, What It Costs, and What the Assessor Measures →
- PSCS and PSDP in Ireland — Mandatory Roles Under SHWW 2013, Who Takes Them, and When →
- Retention in a Self-Build in Ireland — 5% Held Back, When It's Released, and the Trap →
- Schedule of Works for a Self-Build — What It Is, Why It Matters, and How to Write One →
Watch out for
Common mistakes, hidden costs, gotchas.
- BER Assessment in Ireland — When to Get One, What It Costs, and What the Assessor Measures →
- Building Contract Types in Ireland — Fixed-Price vs Cost-Plus, and What Each Means →
- Direct Labour vs Main Contractor in Ireland — Cost, Time, Risk, and the Hybrid Route →
- Retention in a Self-Build in Ireland — 5% Held Back, When It's Released, and the Trap →
Compare with
Alternative approaches worth knowing.