Renovation deposits and progress payments: keeping your prepayment low
When a renovation firm stops work or closes, homeowners lose the money they paid ahead of the work. The amount at risk at any moment is simple: what you have paid minus the value of work done. A good payment schedule keeps that gap small.
What to look for in the quotation
- The percentage asked at signing, before any work starts.
- Whether later payments are tied to dates or to finished stages.
- Whether carpentry or materials are paid in full before they are delivered or installed.
- How much is held back until handover and defects are closed.
A schedule tied to finished work
One common shape (illustrative, you and your contractor agree the real terms):
| Stage | Share | Release when |
|---|---|---|
| Signing | 10% | Signed contract with itemised quotation and drawings |
| Hacking and permit | 20% | Hacking done, debris cleared, permit copy received |
| Wet works | 30% | Tiling and waterproofing done, ponding test photo |
| Carpentry installed | 30% | Installed and matching drawings |
| Handover | 10% | Defects closed, warranties in writing |
Ask for it before you sign
Most firms expect some negotiation on terms. Ask early, in writing, and keep receipts for every payment. If a firm insists on a large share upfront, ask what it covers (for example custom carpentry materials) and whether that part can be paid on delivery instead.
Other simple protections
- Pay by a traceable method and keep every receipt.
- Take dated photos at each stage before releasing the next payment.
- For HDB flats, check the firm is in HDB's Directory of Renovation Contractors. HDB guidance
- Know where to go if things go wrong: CASE (Consumers Association of Singapore).
Have quotations already? We compare them side by side and write a payment schedule to propose for your project, within 24 hours. SGD 49. Start or see a sample.
General information, not legal or financial advice.