What is the typical payment schedule for home improvement projects?

The typical payment schedule for home improvement projects often includes a structured approach that balances the risk for both the homeowner and the contractor. A common arrangement is to pay one-third of the total cost upon signing the contract. This initial payment secures the project and allows the contractor to purchase necessary materials.

The second one-third is typically paid when the project begins. This payment helps the contractor cover the upfront costs associated with starting the project, such as labor and additional materials. Finally, the remaining one-third is paid upon completion of the project, which ensures that the contractor has an incentive to meet the agreed-upon standards and finish the job to the homeowner's satisfaction.

This payment structure helps to ensure that both parties are protected and that work is moving forward as planned. It reflects a reasonable compromise between paying upfront and delaying payment until full completion, making it a widely accepted practice in the industry.