Construction
Construction Financing and Stage Payments in Lahore: Cash-Flow Done Right
14 May 2026·6 min read
Construction projects fail on cash flow far more often than on design. Stage payments — to both your bank and your contractor — are the single biggest lever to keep timelines tight and budgets honest.
Standard construction stages
Foundation, grey structure, electrical and plumbing rough-in, finishes, and handover. Tie 15–25% of contract value to each stage and never pay ahead of completion.
Bank tranche structuring
Banks release construction tranches against engineer-certified stage completion. Synchronise your bank tranches with your contractor milestones to avoid funding gaps.
Retention and final settlement
Hold back 5–10% of the contract for 60–90 days post-handover to cover snagging. Contractors who refuse this clause are the contractors you do not want building your home.