When Should I Pay the Final Balance?
Pay the balance when the work described in your quote is finished. Here is how to check, and how to handle small items that are left.
The short answer
When the agreed work is complete. Then pay it promptly.
Pay the final balance when the work described in your quote has been completed: the job is finished, the site has been cleared, and you have walked round and raised any small items that need attention. Payment on completion means when the agreed work is finished, not when the contractor has left with parts of the job still outstanding. Once the work is complete, pay promptly, as agreed.
It helps to agree in advance what completion means and how any small outstanding items will be handled, so the end of the job is straightforward for both of you. The guide to final payment and snagging covers this in more depth.
At the end of the job
Before you pay the balance
Walk round with the quote in hand
Check that each item of work described has been done. Ask about anything you're unsure of.
Check the site
Waste removed, areas made good, and your property left as agreed.
Note any snags
Small items that need finishing or adjusting. Write them down and share them. See what is a snagging list?
Agree how snags will be dealt with
Agree what will be done and when. Minor snags are usually put right quickly.
Collect the paperwork
The final invoice, the warranty terms, and any certificates that apply to the work.
Pay, and keep the receipt
Pay by a traceable method to the business on the quote, or the agent it names.
The grey area
Snags are not the same as unfinished work
There is a difference between a job with a couple of minor snags and a job that isn't finished. A small adjustment or a missed touch-up is normally something the contractor puts right as part of completing properly. A missing section of work means the job isn't complete yet.
Holding back the whole balance over a minor snag is usually out of proportion and can turn a small matter into a dispute. If part of the work is genuinely unfinished or wrong, it is reasonable to raise it before paying and to agree when it will be completed. Holding back a set amount after completion, often called a retention, is something to agree at the start rather than impose at the end; see retention on building work. This is general information, not legal advice.
The best time to settle all this is before the job starts. A line in the quote, or a short email agreeing what happens at completion, saves a difficult conversation at the end.
Paying on time
Prompt payment keeps things straightforward
Once the work is complete, paying promptly is part of your side of the agreement. It closes the job cleanly, and a contractor who has been paid on time is well placed to deal with anything that comes up later under the warranty. Our answer on what payment on completion means covers the wording you may see on a quote.
If you are genuinely unhappy with the finished work, say so clearly and in writing, and give the contractor the chance to put it right. See what if I am not happy at the end of the job?
If you and the contractor disagree about whether the work is complete, set out the specific items in writing and ask when they will be dealt with. A clear list is far easier to resolve than a general sense that the job isn't right.
Is it complete?
Ready for the balance, or not quite yet
Complete
- Every item in the quote has been done
- Waste cleared and the site left tidy
- Any small snags listed and a date agreed to put them right
- Final invoice and warranty terms received
Not complete yet
- A section of the quoted work is missing
- Materials or scaffolding still on site with work outstanding
- Something clearly wrong that needs redoing
- Agreed extras not yet carried out
If you use Mortaro
The balance is due on completion
On a job we coordinate, the balance falls due on completion. It is paid to your contractor, and we receive it as their payment administration agent and pass it on promptly. Waste is removed on completion, and your contractor's workmanship warranty, a minimum of 12 months, usually runs from completion. If something isn't finished or needs attention, tell us and we raise it with your contractor. See payments explained and putting things right.
Straight answers
Questions about the final payment
Does the warranty start when I pay?
Warranty terms are set by the contractor. Many run from completion rather than from payment. Check the wording in your quote.
What if the contractor asks for the balance before they have finished?
Ask what remains and when it will be done. It is reasonable to pay the balance once the agreed work is complete, unless you agreed different terms at the start.
Should I get anything in writing at the end?
Yes: the final invoice showing what has been paid, the warranty terms, and any certificates that apply to the work. Keep them with your quote.
Start here
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