What To Expect from Payment Schedules During Your Home Renovation

Payment Schedule

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Home renovations are a fairly large investment, and for a lot of people, this can be incredibly intimidating. If you are not too excited about the idea of spending tens of thousands of dollars all at once, payment schedules can be a wonderful way to break up your payments into smaller and more affordable chunks—and we are happy to offer this.

“I know we want this renovation, but paying that much money out of pocket all before the project even starts has me a little nervous.”

“We completely understand. It is a lot of money, and you are well within your rights to be worried about it. Have you considered our payment scheduling option? Let me break it down for you.” 

Payment schedules are a fairly common practice when it comes to renovation work, particularly for larger companies. As we move into this, please keep in mind that every state has different requirements. Our breakdown follows what you can expect when working with a contractor in California, but it is important to remember that not everyone does this.

How We Can Help

Offering payment schedules is something that we are very happy to be able to do, and we know that our clients love it too. Like you, we are not all that thrilled at the prospect of making a significant investment all in one day, which is why we offer these payment schedules to make everything a little bit easier. Be aware that every business will approach schedules a little bit differently.

“Wait, so we don’t have to pay it all upfront?”

“Nope! We like to help our customers pay on a schedule that works for them!”

When we offer a payment schedule, what we really mean is that we will cover a portion of the upfront costs so that you can pay us as the job pushes towards completion instead of entirely on day one. We are able to help you float the costs associated with materials and subcontractors to ensure that you can pay on a schedule that is a little more approachable.

“So we don’t need to pay anything on day one?”

“We do require an initial fee, but it is much smaller than the full amount—we can assure you of that!”

Though we can certainly help with this, it is important for homeowners to understand the limitations that we have as well. A renovation that costs half a million dollars is going to come with some significant upfront investments, and we might not be able to approach that in the same way that we would a $60,000 renovation. Of course, that doesn’t mean that we don’t have options. We have a few tricks up our sleeves to make the situation more comfortable for everyone!

What is a Material Deposit?

In order to be able to provide you with a payment plan, we do request that you help us to mitigate some of the risks. Obviously, we cannot spend a bunch of money upfront and risk a homeowner changing their mind at the last minute. This is why we request a material deposit when we agree to a payment schedule.

“A deposit sounds a lot more affordable than the full amount, but how much is the deposit?”

“On average, we request 30% of the total renovation cost.”

“That’s not bad at all!”

A material deposit is an upfront fee that we charge before we make any steps forward. On average, we request a deposit of 30% of the total order. This means that if you were to invest in a $100,000 renovation with one of our payment schedules, we would ask you to provide us with 30% in advance. In the same way that you are trusting us to deliver an incredible renovation, we do expect to receive the appropriate compensation for the job on time. 


We have found that a 30% deposit helps us to be able to get the ball rolling and set the renovation into motion. This amount will allow us to pay the subcontractors, order a portion of the materials, and get started on time. A lot of the time, homeowners are relieved to find that they can invest a more reasonable amount in the beginning and pay as the job reaches key milestones.

“I’m definitely on board with paying an upfront deposit, but when is it actually due?”

“The date can vary, but it is something that will be clearly communicated, and it will always be before we start working in your home.”

Knowing that we do expect that initial payment, you are likely wondering when that will be due—and the truth is that the date can vary, but it will always be prior to the start of the project. The payment date will come after we have booked all of the necessary subcontractors, made our schedule, and invested in the materials that we need to get started. Our team will clearly communicate when the payment is expected when we set things in motion, and the date will never be a surprise.

Additional Payments and Significant Completion

The remainder of the renovation cost will be spread out across a variety of different milestones throughout the project. Though some contractors simply set dates broken out throughout the project schedule, we prefer to help our clients truly see and understand what they are paying for. Using milestones to define the project schedule helps us to do this.

“Okay, so after we make that initial deposit, when is the next payment due?”

“The payment date will follow the completion of a significant task in your home so you can physically see the progress that you are investing in.”

We consider milestones in the project to be moments where significant completion can be seen. Significant completion means that you will be able to noticeably see that a big portion of the renovation has been completed in some way. This will vary from one project to the next, and it will change as the project does as well.


When a homeowner walks into a space during a renovation, it is fairly common to look around and see nothing but a huge mess for a while. You might see some changes, but you might not have any idea what is really going on. Our project schedule and notes will help you to understand what these changes mean, and we will always highlight these moments of significant completion.

“I see that a payment date is coming up, but when I checked on the renovation, all I saw was a big mess. What is this milestone?”

“This marks the end of the demolition phase, which means we can start making huge moves for your renovation!”

Though the milestones themselves can change depending on the type of renovation, amount of work, and other changes to the project, most people find that they are fairly easy to follow. For example, we might ask for a payment following the demolition phase since this actually takes a fair amount of work, particularly in large spaces.


The remaining milestones will be balanced between changes that you can see and changes that you can’t. We are likely to schedule payments following demolition, framing, key inspections, electrical work, plumbing work, and more. Since completing each of these steps moves us towards the final product in a significant way, we use them to demonstrate progress and ask for payment in conjunction with what we have accomplished.

How Many Payments You Should Expect

For the majority of our projects, homeowners can expect the total cost of their bill to be broken into 5 to 7 payments in total. This number does vary depending on project size and cost, but this is the average that we usually see. It is important to note that these are the payments following the initial 30% fee.

“The amount is really is a lot more affordable when we break it out into all of these payments.”

The amount for each payment is something that we will discuss with every client on an individual basis. As much as we wish we could cut down the costs further for everyone, the fact remains that we do need to outline a payment schedule that supports our efforts while also making the situation more comfortable for homeowners.

What This Offers Homeowners

Homeowners have a lot to gain when it comes to using payment schedules, and that is the main reason that we offer them. For a lot of people, a payment schedule allows them to make a significant and exciting change without necessarily emptying out the savings account in advance. This alone is a pretty big perk, but that doesn’t mean that it is the only benefit.


Something that we love about offering payment schedules is the fact that it offers you security throughout the process. Since you will be paying for significant milestones, it means that you can keep an eye on everything and truly feel good about the investment that you are making. 

“I feel a lot better making payments knowing that I fully understand what I am paying for.”

“That’s the goal! We want you to feel good about the investment throughout the entire process, not just when everything is done.”

Plenty of people pay in advance for this kind of work, but we understand that not everyone is comfortable with that. It can be unsettling to spend that much money and not really see what you are getting for it until weeks later. With this approach, you can have the security of knowing exactly what you are investing in.

You Know What to Expect

Another perk that comes with payment schedules is that we will guarantee that you always know what to expect. You will be completely looped in, aware of payments dates and dollar amounts, and kept up to date in the event of any changes. It is just one more way for us to collaborate and stay in communication.

What This Means for Us

Not every contractor offers payment schedules, and we know this. You might be wondering what we receive by allowing our clients to make their payments over time, and you might be surprised by the benefits that come with this for us. Yes, it really is a good thing for us as well.

Positive Flow of Money

The first and most obvious benefit for us is that we will make more money. By accommodating the needs of our customers, we are able to meet customers halfway that might otherwise not be able to work with us. Our payment schedules make it easier for more people to get renovations, and as a natural byproduct of that, we generate more revenue. It is a win-win.

“So, by offering additional payment methods for your clients, you receive more clients?”

“Exactly. Being able to meet our customers halfway makes it easier for them to work with us—and we love working with new people!”

A Positive Customer Experience

Our biggest benefit with these schedules is the fact that we are always able to provide a better experience for our clients. We can make it easier or more affordable for them, and that means that they will enjoy the process more. More importantly, we are able to add that layer of security, so our clients feel confident going into their renovation. When our customers are happy, we are happy.


At KHB Construction, we try and make sure that we make business decisions that allow us to best serve our customers. We know that renovations are expensive, and we know that they can be a fairly intimidating investment. This is why we are so happy to be able to meet our clients any way that we can to ensure that everyone gets exactly what they want during their renovation. If you are interested in learning more about payment schedules or would like to receive a quote for your next renovation, don’t hesitate to contact us directly!

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