Renovation Progress Payments: How to Structure Your Schedule and Protect Your Money

The single biggest way Singapore homeowners lose money in a renovation is not bad workmanship — it is paying too much, too early, to the wrong contractor. A sensible progress-payment schedule keeps the contractor motivated and your money protected. Here is how to structure it. --- ## Why payment structure matters A renovation is paid in **stages tied to work completed**, not in one lump sum. The principle is simple: **you should never have paid significantly more than the value of work already done.** That keeps leverage on your side if something goes wrong. --- ## A typical (sensible) schedule Exact splits vary, but a balanced structure looks something like: • **Deposit on signing** — around 10–20% to secure the slot and start procurement • **After hacking / masonry / wet works** — a milestone payment • **After carpentry installation** — the biggest single trade, paid as it lands • **After painting / second fix** — near completion • **Final 5–10% on handover** — released only *after* your defect check **Key rule:** keep a meaningful final retention (5–10%) until you have inspected and are satisfied. It is your only real leverage at the end. --- ## Red flags to walk away from • **Demands for full or near-full payment upfront** — the biggest warning sign • **Cash only, no proper invoice or contract** — no paper trail, no recourse • **Payments tied to dates, not completed work** — pay for progress, not the calendar • **Pressure to pay the next stage before the current one is done** — never do this • **No itemised contract** to check payments against --- ## How to protect yourself • **Get everything in a written contract** — schedule, scope, milestones, materials • **Pay by traceable methods** (bank transfer/PayNow with records), not undocumented cash • **Inspect before each milestone release** — does the completed work match the stage? • **Hold the final retention** until your defect inspection is done and snags are fixed • **Document variations** — agree the price of any change before paying for it --- A fair contractor will happily work to a staged, completion-linked schedule — it is normal and protects you both. Anyone insisting on most of the money before the work exists is telling you something important. Structure the payments around delivered work, keep a retention to the end, and put it all in writing.