Guide

How to negotiate the payment terms of your home renovation project?

In order to limit the risk of litigation or disagreement, it is strongly advised to always sign a contract with your general contractor indicating the nature of the work, the details of the quote, and the payment terms. We advise you to structure the payment terms as follows:

Deposit before starting the renovations

A deposit of 10% to 15% of the home renovation project cost when you sign a quote (for more details see the guide on deposits). Negotiate a deposit as small as possible but enough for the general contractor to purchase the materials needed to start your home renovation project.

Payment during the renovations

You can ask to stagger several payments during the duration of the renovations representing 70% of the cost of the home renovation project. You can ask to divide these payments in 3 more or less equal parts (e.g. 25% - 25% - 20%).

Retainer at the end of the renovations

We advise you to hold a retainer of 15% to 20% that will be only payable when the entire home renovation project is fully completed and inspected. This is your last lever to ensure a good finalization of your home renovation project.

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