Guides / Renovation · Published 2026-10-27
Contractor payments: never pay ahead of the work
Never pay ahead of the work.
Your money should follow real progress. Keep the deposit small: California caps home-improvement down payments at $1,000 or 10% of the contract, whichever is less (check your state). Tie every other payment to a finished milestone you can see, like the rough-in inspection passed or cabinets set, and write the schedule into the contract. Ask for a lien release with each payment, and hold the final payment until the final inspection passes and the punch list is done.
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