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inchpincher
We've not done an extension, but we have done some heafty work on a couple of places now.
Our rule of thumb, stolen from architect friends, is that anyone who can't float themselves for materials and labour for the first 4 weeks doesn't get the work.
So yes...
Plan out your milestones.
Something like...
Ground work complete - 20%
Structure topped out - 20%
First fix - 20%
Second fix and fitout - 20%
Snag list cleared, certification and paperwork in place, job signed off - 20%
You need to agree clear definitions of these stages with your main contractor before you start.