Stage Payments in a Self-Build in Ireland — Milestones, Retention, and the 5% Rule

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.

TL;DR

• Stage payments: foundation, wall plate, roof, weathertight, first fix, second fix, completion. 5–10% each, plus 5% retention.

• 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.

When this matters most

You're planning the payment schedule.

When this doesn't apply

The build is finished.

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.

Sources

RIAI, Form of Building Contract 2012. https://www.riai.ie/