What Does Payment on Completion Mean?
It means the balance is due once the work in your quote is finished. The useful question is what "finished" means on your job.
The short answer
The balance is due when the agreed work is done, and a clear definition of done makes that easy.
Payment on completion means the remaining balance of the price becomes due once the work described in the quote or contract has been finished. It does not mean you pay before the work is done, and it does not usually mean waiting months until every possible issue has shown itself. It means the job you agreed to pay for has been carried out.
Friction at the end of a job often comes from different ideas of what "complete" means. If the quote sets out the work clearly and you walk round together at the end, the question usually answers itself.
Defining complete
What finished normally looks like
On a home project, the work is usually complete when everything described in the quote has been carried out, the site has been cleared, and anything the contractor was responsible for tidying or making good has been done. Where a job needs building control approval or other certification, ask when that paperwork will arrive and who is arranging it. It can follow a little after the work itself.
Larger contracts sometimes use the phrase practical completion: the work is finished and usable, with only minor items left to sort. Those minor items are often dealt with through a snagging list rather than holding up the whole payment.
If your quote does not say what completion looks like, ask before you accept. What a building quote should include covers the wording worth looking for.
At the end of the job
From finished work to final payment
Walk round the work
Ideally with the contractor, in good light. Compare what you see with what the quote describes.
Note anything outstanding
Write down small items and take photographs. Agree with the contractor how and when they will be dealt with.
Check the site is clear
Materials, waste and equipment should be gone, unless you agreed otherwise.
Pay the balance as agreed
Pay the business named on the quote, by the method agreed, and keep the record.
Collect the paperwork
The final invoice, the warranty terms, and any certificates or sign-offs that apply to the work.
Why the date matters
Completion starts other clocks
The completion date is worth writing down. Workmanship warranties commonly run from completion, so it tells you when your warranty period starts and ends. It is also the natural point to file your invoices and receipts together with the warranty, in case you need them later or sell the house. If you are later asked when the work was finished, for example when selling, a dated final invoice and a photograph taken on the day are simple, useful evidence.
If you are unsure whether the job is ready for the final payment, when should I pay the final balance? covers the timing in more detail.
A quick check
Ready for the balance, or not quite yet
A practical way to judge the moment, whatever the size of the job.
Usually ready
- Everything in the quote has been carried out
- The site is cleared and materials removed
- Any small items are listed with a date to fix
- You have the warranty terms in writing
Usually not yet
- Part of the quoted work has not been started
- Scaffolding is still up for unfinished work
- Something is visibly failing, such as a leak
- You have not yet had a chance to look round
Longer projects
Completing a stage is not completing the job
On a project paid in stages, each stage has its own trigger, and reaching one does not make the job complete. The balance is tied to the finish of the whole job, as described in the quote. If your payment schedule is written clearly, the difference is easy to see.
Where there is doubt, look at the wording rather than the calendar. A job that has overrun is not complete because the planned end date has passed, and a job that finished early is not unfinished because the date has not arrived. The quotes and payments guide brings deposits, stages and final payments together.
With Mortaro
How completion works on a coordinated job
On a project Mortaro coordinates, the balance is due on completion, after the 25% deposit you paid to secure the works. It is paid to your appointed main contractor, with Mortaro receiving it as their payment administration agent and passing it on without unnecessary delay.
Waste is removed on completion, and your contractor's workmanship warranty, a minimum of 12 months across our network, usually runs from that point. If anything is outstanding when the work finishes, tell us and we take it up with your contractor. Payments explained sets out the full arrangement.
Straight answers
Questions about completion
Do small snags mean the job isn't complete?
Not usually. Minor items are normally listed and put right, and it helps to agree with the contractor how they will be handled alongside the final payment.
What if we disagree about whether it's finished?
Go back to the quote and compare it with the work, item by item. Put your points in writing. See what if I am not happy at the end of the job?
Can the balance be split if a small item is outstanding?
Sometimes both sides agree to pay most of the balance and settle a small remaining sum once the last item is done. If you agree that, put it in writing, with what is outstanding and the amount.
Start here
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