Stage payment and cash-flow planner

Spread a villa build budget over a typical payment schedule: advance, monthly valuations, retention and its release. See what you pay each month and how much of your money is ahead of the work.

Construction contract sum (AED)

The example is the construction cost of the worked example in our cost calculator: AED 5,115,000.

Build period (months)

Defects period after handover (months)

Advance payment (% of contract)

Typically 10–20%, depending on the project.

Retention (% of each valuation)

Commonly 10%, half released at handover and half after the defects period.

How the work is spread

EvenS-curvePeaked

Even: the same value every month. S-curve: a slow start and finish with the busiest months in the middle, the usual shape of a build. Peaked: more of the work squeezed into the middle months.

Percentages are typical and contract-dependent. Your contract sets the real terms; this is not legal advice.

Eastbridge Strategic Partners

Stage payment plan: indicative schedule

Your inputs

Busiest month, likely (S-curve)

AED 529,540 Range AED 341,560 (even) to AED 670,320 (peaked)

With an advance of AED 512,000 and 10% retention, you pay AED 529,540 in the busiest month and have paid AED 4,859,250 by handover. AED 255,750 of retention is still held after handover until the end of the defects period.

Key figures by spending pattern
Key figures	Low (even)	Likely (S-curve)	High (peaked)
Busiest month	AED 341,560 in month 2	AED 529,540 in month 6	AED 670,320 in month 6
Advance paid on signing	AED 512,000	AED 512,000	AED 512,000
Paid by handover	AED 4,859,250	AED 4,859,250	AED 4,859,250
Retention held after handover	AED 255,750	AED 255,750	AED 255,750

Payments month by month

Payment schedule
When	Work valued	Retention held back	Advance recovered	You pay	Paid to date	Retention held	Advance not yet recovered
Advance payment, on signing	–	–	–	AED 512,000	AED 512,000	–	AED 512,000
Month 1	AED 87,000	AED 8,700	AED 8,710	AED 69,590	AED 581,590	AED 8,700	AED 503,290
Month 2	AED 256,000	AED 25,600	AED 25,620	AED 204,780	AED 786,370	AED 34,300	AED 477,670
Month 3	AED 406,000	AED 40,600	AED 40,640	AED 324,760	AED 1,111,130	AED 74,900	AED 437,030
Month 4	AED 530,000	AED 53,000	AED 53,060	AED 423,940	AED 1,535,070	AED 127,900	AED 383,970
Month 5	AED 617,000	AED 61,700	AED 61,760	AED 493,540	AED 2,028,610	AED 189,600	AED 322,210
Month 6	AED 662,000	AED 66,200	AED 66,260	AED 529,540	AED 2,558,150	AED 255,800	AED 255,950
Month 7	AED 661,000	AED 66,100	AED 66,160	AED 528,740	AED 3,086,890	AED 321,900	AED 189,790
Month 8	AED 617,000	AED 61,700	AED 61,760	AED 493,540	AED 3,580,430	AED 383,600	AED 128,030
Month 9	AED 530,000	AED 53,000	AED 53,060	AED 423,940	AED 4,004,370	AED 436,600	AED 74,970
Month 10	AED 406,000	AED 40,600	AED 40,640	AED 324,760	AED 4,329,130	AED 477,200	AED 34,330
Month 11	AED 256,000	AED 25,600	AED 25,620	AED 204,780	AED 4,533,910	AED 502,800	AED 8,710
Month 12	AED 87,000	AED 8,700	AED 8,710	AED 69,590	AED 4,603,500	AED 511,500	AED 0
Handover: half the retention released	–	–	–	AED 255,750	AED 4,859,250	AED 255,750	AED 0
End of the defects period (month 24): balance of retention released	–	–	–	AED 255,750	AED 5,115,000	AED 0	AED 0
Total	AED 5,115,000	AED 511,500	AED 512,000	AED 5,115,000

Last reviewed: October 2026, by Philip Chapman

Showing the example below. Switch on JavaScript to change the inputs.

An illustration of a typical schedule, not your contract and not legal advice. Payment is shown in the month the work is valued; in practice certification and payment follow some weeks later. Excludes variations, VAT and fees. Sources and assumptions

Sources. Typical advance and retention percentages from Al Tamimi & Company and DLA Piper; the example contract sum from the Eastbridge cost calculator. Full sources, assumptions and method: eastbridgestrategicpartners.com/tools/stage-payment-planner/#sources

Eastbridge Strategic Partners · Client-side project management for private villas in Dubai and Abu Dhabi · philip@eastbridgestrategicpartners.com · +971 56 744 0057 · eastbridgestrategicpartners.com

How the schedule works

The short answer: on a typical villa contract you pay an advance on signing, then monthly payments for the work valued, less retention and less a share of the advance, then half the retention at handover and the rest when the defects period ends. The planner shows how much leaves your account each month, and how much of your money is in the contractor's hands before it has been earned.

Advance. Al Tamimi & Company describes an advance payment of between 10% and 20%, depending on the nature of the project, as industry practice.^[1] Under FIDIC contracts it is given in return for an advance payment guarantee. The planner recovers it from each monthly valuation in proportion to the work done, a simple and common approach; your contract may set a different recovery schedule.
Monthly valuations. The contract sum spread over the build period on the pattern you choose. Each month's value is rounded to the nearest AED 1,000 and the last month takes the difference, so the months add up to the contract sum exactly.
Retention. DLA Piper describes common UAE practice as 10% retention, with 5% released at handover and 5% after the defects liability period.^[2] Under the FIDIC Red Book, the taking-over certificate releases the first half.^[1] Retention is not required by UAE law; the percentage, any cap and the release dates are whatever your contract says.
Build period. The example uses 12 months. Published estimates put villa construction at typically 12–18 months^[3] or 8–14 months for the construction phase alone.^[4]

The column "Advance not yet recovered" is your exposure: money paid ahead of the work. It falls as the advance is recovered, which is why the advance payment guarantee should reduce on the same schedule and stay valid until the last of it is recovered. Retention is the opposite: the contractor's money in your hands, which is why it gives you leverage at handover.

From the builder's side, the first month's valuation was always the one we watched most closely, because front-loading the early payments is the easiest way for a contractor to finance a job with the owner's money. A schedule like this one, agreed before signing, gives you something to check each payment application against. Our guide to villa construction contracts in the UAE covers retention, advance payment guarantees and bonds in more detail.

Questions

How much advance payment is normal on a UAE villa build?

An advance of 10–20% of the contract sum is described as industry practice, depending on the project (Al Tamimi & Company). It should be secured by an advance payment guarantee that reduces as the advance is recovered from later payments. The figure is negotiable and set by your contract.

How much retention is held on a construction contract in the UAE?

Commonly 10% of each payment, with 5% released at handover and 5% after the defects liability period (DLA Piper). Retention is not mandated by UAE law, so the percentage, any cap and the release dates are whatever your contract says.

When is retention released?

Typically half at handover (the taking-over certificate under FIDIC) and the balance at the end of the defects period, often a year. Keep a dated list of defects and report them in writing well before the period ends.

Why does the busiest month matter?

Because it is the month your cash has to be ready. On an S-curve the middle months carry the most work, so the peak payment is well above the average. Plan finance drawdowns and currency transfers around it.

Is this legal advice?

No. It illustrates a typical schedule. Payment terms, retention, guarantees and their release are contract-specific; take advice from a UAE-qualified lawyer on your contract.

Sources

Al Tamimi & Company, Highlights of the laws of the UAE, the PRC and the common law applicable to construction contracts, part 2 (2011). www.tamimi.com
DLA Piper, Global Construction Bulletin: Security of payment, UAE (October 2025). www.dlapiper.com
Optimal Engineering Consultants, Cost to build a villa in Dubai (2026 guide, March 2026). www.optimal.ae
Real Estate Club Dubai (property information website), Villa architects in Dubai: FF&E, approvals and timelines. realestateclubdubai.com

Rates last reviewed October 2026 by Philip Chapman. This page gives general information, not financial, legal or engineering advice.

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