How to split a big job into milestone payments
Milestones protect you from fronting large costs.
- Break the job into stages. Materials delivered, rough-in done, inspection passed, final walkthrough.
- Tie each payment to a stage. Use clear, checkable events, not dates.
- Put the schedule in the quote. Show the amount and trigger for each payment.
- Invoice at each milestone. Send it the same day the stage is complete.
- Pause if payment is late. State this in your terms before work starts.
Common questions
Are there legal limits on progress payments?
Some states limit deposits or payment schedules on home improvement work. Verify with your attorney.
How many milestones is right?
Three to five for most jobs.
See also the contractor guides and free tools.
General information, not legal or financial advice. Verify with your attorney or accountant.
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