The one rule
Your payments should never run far ahead of the work done. Most prepayment losses happen when a firm closes or disappears while holding money for work it hasn't done yet. In 2024, renovation had the highest prepayment losses of any industry in Singapore (CASE).
The deposit
- CaseTrust-accredited renovation firms cap the initial deposit at 20% of the total
- They must also buy a deposit performance bond that protects it against closure, winding up, liquidation and non-performance
- With a non-accredited firm, keep the deposit as small as you can, and ask how it's protected
An example stage-payment schedule
This is an example of how payments can follow progress. It's not a standard: your contract sets the actual terms.
| Stage | When you pay | Example |
|---|---|---|
| Deposit | On signing | Up to 20% |
| Stage 1 | After hacking, masonry and plumbing are done | 25% |
| Stage 2 | After carpentry is delivered and installed | 30% |
| Stage 3 | After painting, electrical and final installation | 20% |
| Final | After handover, when defects are fixed | 5% |
Keep the final amount until defects are fixed and you've photographed the results.
How to pay
- Pay into the company's bank account only, with the name matching your contract
- Never pay a designer's personal account, even for a “discount”
- Get an official receipt for every payment
- Match each payment to a stage in your contract
- Keep a simple record: date, amount, stage, receipt number
Before each stage payment
- Visit the site, or ask for dated photos and a video
- Check the stage is actually complete, not “almost”
- Make sure any variation orders are priced and confirmed
- Raise defects in writing before you pay
Related: keeping variation orders under control and what CaseTrust protects.
Get the free Before You Sign checklist: every check from our guides on 2 printable pages.Download PDF ↓