Contractor payment guide
A remodeling payment schedule that funds the work ahead
Start with what the job will cost you, and when. Then agree when each client payment must collect to cover the next part of the work.
By Michael Delgado, founder and working contractor ·
Give every payment a job to do
A payment schedule should tell the client what each payment covers, how much it is, and when it will be collected. For the contractor, it should answer another question: will this job's money be available before its next costs arrive?
Work backward from the material orders, crew time and subcontractor commitments. Separate a named materials deposit from the work phase it supports. Include overhead and margin in the agreed prices. A deposit already included in the job total must not be charged again inside a later phase.
A $40,000 remodel, laid out before work starts
This is an illustrative scope and payment split, not a recommended deposit percentage or a customer result. The dates and amounts need to match your job, your agreement and the requirements that apply where you work.
| Payment | What it covers | When to collect | Amount |
|---|---|---|---|
| Materials deposit | Agreed materials order | Before placing the order | $8,000 |
| Preparation | Protection, removal and site preparation | Before this phase starts | $6,000 |
| Rough work | Framing and agreed rough-in work | Before this phase starts | $10,000 |
| Installation | Agreed installation and finish work | Before this phase starts | $10,000 |
| Finish and closeout | Remaining finishes and closeout scope | Before this phase starts | $6,000 |
| Total, including the materials deposit | $40,000 | ||
The split is useful only if the costs fit it. If a supplier needs $12,000 before the order ships, an $8,000 deposit leaves you carrying $4,000. Revise the arrangement with the client before making that commitment; a nicely formatted schedule does not fill the gap.
Use the editable payment-planning worksheet
Download the remodeling payment schedule worksheet (.xlsx). It opens in Excel and can be imported into Google Sheets. The example sheet uses the amounts above; the planning sheet gives you space for your own deposits, work phases, expected costs and collection timing.
- Enter the agreed job price. List each deposit and phase once.
- Write the specific work or purchase each payment covers.
- Enter the expected cost and when cash must be available to meet it.
- Set the collection timing, allowing for the payment method and bank payout timing.
- Check that scheduled payments equal the agreed price and review any payment smaller than its associated cost.
The worksheet helps plan an arrangement. It does not authorize a charge, replace the signed agreement, or determine local deposit limits.
What the client approves in PhaseContract
Before work starts, the client sees the job, its price, the deposits and the work phases. They approve the payment schedule and payment method together. Every phasecontract comes with a shared workspace where that arrangement stays visible as the job progresses.
The owner or assigned foreman clicks Collect when an agreed deposit is due. Credit Card payment must succeed when starting a work phase; Bank Transfer must clear before its work starts. You do not create and send another invoice to initiate each agreed collection.
Plan for cash availability, not just a successful charge
Client payment collection and your bank payout are separate events. Stripe controls the payout timing to your bank account. Plan material orders and payroll around when the funds will actually be available, and check your payment account's payout schedule before committing to a date.
If the scope changes, agree the change and its price through the job's change-order process. Do not quietly add it to a previously approved payment. The shared workspace should keep the client looking at the same arrangement you are working from.
See the collection workflow step by step, or explore a sample job in the demo.