What is the typical payment schedule for renovations?

Understanding Renovation Payment Schedules in Ottawa

Most reputable Ottawa contractors, including Justyn Rook Contracting, follow a structured payment schedule that protects both the homeowner and contractor while maintaining healthy cash flow throughout the project.

The typical payment structure for renovations in the Ottawa market breaks down into 3-5 installments tied to project milestones rather than arbitrary dates. This approach ensures you're only paying for completed work and materials actually delivered to your site.

Standard Payment Breakdown

Initial Contract Signing: 10-15% deposit to secure your project slot and order initial materials. This should never exceed what's reasonable for material procurement - be wary of contractors demanding large upfront payments.

Project Commencement: 25-30% when work begins and materials are delivered on-site. This covers the bulk of material costs and initial labor.

Mid-Project Milestones: 25-30% at substantial completion of major phases. For a bathroom renovation, this might be when plumbing rough-in and electrical are complete. For kitchens, when cabinets are installed and countertops templated.

Near Completion: 20-25% when project is substantially complete but before final walkthrough. This ensures any punch list items are addressed promptly.

Final Payment: 5-10% upon final completion and your satisfaction with all work.

Ottawa-Specific Considerations

Under Ontario's Consumer Protection Act, contractors cannot legally demand more than 10% down payment or $1,000 (whichever is less) for contracts under $50,000. For larger renovations, the deposit is capped at 10% of the total contract value. This protects homeowners from contractors who disappear with large upfront payments.

Permit and inspection timing also affects payment schedules in Ottawa. Many contractors tie payments to successful permit inspections - rough-in payment after electrical/plumbing inspection passes, for example. This protects you from paying for work that doesn't meet Ontario Building Code standards.

Red Flags to Avoid

Never work with contractors who demand full payment upfront, request payment significantly ahead of work completion, or insist on cash-only transactions. Legitimate contractors understand that homeowners need protection and are comfortable with milestone-based payments.

For your protection, ensure all payment terms are clearly outlined in your written contract, including what constitutes completion of each milestone. This prevents disputes and ensures everyone understands expectations.

For a detailed payment schedule tailored to your specific renovation project, contact Justyn Rook Contracting for a free consultation where we'll explain exactly how payments align with your project timeline.