What Is the Standard Payment Schedule for Remodeling?

If you’re planning a remodeling project, you might wonder what a typical payment
schedule looks like. The answer is that there really isn’t a “standard” schedule across all
remodeling companies. Here’s what you need to know about payment structures in the
industry and what to expect when planning your own remodel.

Why Is There No Standard Payment Schedule?:

Each remodeling company has its own approach to payment schedules. For example,
large big box retailers (think orange and blue) often require 100% upfront payment
before any materials are ordered or work begins. Smaller, independent remodelers
typically approach payment schedules differently, often basing them on factors like
project milestones or covering material costs as the project progresses. The main
takeaway? Every schedule has a purpose, designed to meet the unique flow and
financial needs of the company.

The Importance of Having a Payment Schedule:

While there’s no single standard, having a clear and consistent payment schedule is
crucial. A good payment schedule ensures transparency, helping homeowners
understand when payments are due and allowing remodelers to plan their work and
cover expenses. This predictability benefits both the homeowner and the remodeler,
allowing homeowners to budget accordingly and remodelers to manage project costs.

On the other hand, a lack of a set payment schedule can lead to frustration and
mistrust. For instance, without a clear structure, payments can become unpredictable,
with contractors requesting large sums at unexpected times to cover costs. This can
create stress and confusion for homeowners, making a structured schedule essential for
a smooth experience.

What to Look For in a Payment Schedule
When reviewing a remodeler’s payment schedule, keep the following in mind:

• Milestone-Based Payments: Payments tied to project stages, like demolition,
  installation, and finishing, create structure and accountability for both parties.
• Material Costs: Many remodelers base payments on specific material expenses,
  which is a common approach in kitchen and bath projects.
• Upfront Deposits: A deposit at the project’s start is typical, helping to secure the
  project timeline and cover initial expenses.

Bottom Line
While payment schedules may vary by company, a clear, predictable schedule is key.
Understanding the structure behind your remodeler’s payment terms can help ensure a
smooth project, build trust, and provide peace of mind throughout the remodel.