How much should I pay a contractor upfront?

Often a modest deposit for scheduling and materials — not the majority of the job. Large cash-upfront demands are a common warning sign.

What is a progress payment?

A draw tied to completed milestones (demo done, rough-in inspected, cabinets set). Pay for verified progress, not calendar dates alone.

Yes. Hold a clear retainage until final walkthrough items are finished and lien waivers are in order.

Prefer traceable payments with invoices. Cash-only requests make dispute resolution harder.

July 23, 2026 · Guide · 1 min read

A clear payment schedule protects both sides. Homeowners get leverage to finish quality work; contractors get cash flow matched to real progress.

Related: renovation ROI. Compare contractors by city.

How much should I pay a contractor upfront?: Often a modest deposit for scheduling and materials — not the majority of the job. Large cash-upfront demands are a common warning sign.
What is a progress payment?: A draw tied to completed milestones (demo done, rough-in inspected, cabinets set). Pay for verified progress, not calendar dates alone.
Should final payment wait until punch list is done?: Yes. Hold a clear retainage until final walkthrough items are finished and lien waivers are in order.
Is cash-only payment okay?: Prefer traceable payments with invoices. Cash-only requests make dispute resolution harder.