Ours was 40, 40, 20 with the cabinets paid for separately at the time they were ordered (semi custom). We were using a company we knew was reputable with very clear policies about refunds. We also put the initial deposit in our credit card so that we would have an extra level of protection.everything worked out fine.

I've done 1/3, 1/3, 1/3.

1/3 down
1/3 at 'substantial completion'
1/3 after final walk through w/ me and general contractor

1. Get a finish date. They give you a milestone calendar, but you should also have a completion date (complete means full use of kitchen, even if there are outstanding items).

2. Some contractors want you to assume the cost of materials up front and cabinets and fixtures could run close to 20% of total cost.

10% - 15% upon job start should be okay to start, make sure they have the permits in place. They too don't know you and so they want to be sure they will get paid too, which is why they ask for so much upfront.

If you are concerned of them walking away, you can ask for an insurance on the project. It costs money but it will protect you in the case they walk away or abandon the project. Don't forget that they should pay if they a mistake on the countertop, they should pay for emergency shipping or give you a reasonable estimate on the time it will take. I have heard the excuse of "there is a backlog on parts" happened to a neighbor of mine and delayed the project an extra two weeks. I just went through a basement reno which got extended from 4 weeks to 6 weeks. Did the punch list just two days ago.

A 10% - 15% retainage should be held to the end upon final completion after punchlist is completed.

Make sure you talk to your contractor and make sure he has the funds to perform the job, this could be why they are asking so much in the front end. Make sure the COI insurance has you listed as an additional insured as well.

You can always ask for a modified payment schedule if you are really uncomfortable. They should be agreeable.

10% Upon start
25%
25%
25%
15% final acceptance

good luck.

20% at the start of the job seems high. What does he need that much money for? Will he be purchasing materials for you or placing orders for big ticket items like appliances or cabinets? Also, how is "start of the job" defined? How is "complete" defined? Is "complete" less 10% a kitchen you can live in? (but may be missing small cosmetic things or punch list items?) Is there a time limit for how long they can take to "complete"? What you want to make sure of is that the 10% left over is a motivator for them to come back and actually finish the job in a reasonable time.

I agree with PP above that the payment schedule should approximate the percentage of work complete. This schedule doesn't seem too far off that mark, really, but I'd want to know more about why such a high upfront payment.

We are about to renovate our kitchen. From talking to other people who have renovated, a large up front payment shouldn't be required. It seems that 10% per 10% of work completed is an acceptable payment plan.

And make sure the contract is iron clad. Our architect warned to make sure the contract includes what is and is not included.

Hi -- We are undertaking a renovation of our kitchen and are working with a GC. I just received his contract and the payment is broken down into 5 payments. Having never done this before, I wasn't sure if the milestones seemed reasonable.

approx. 20% paid at start of job
approx. 23% paid when all rough ins are complete
approx. 24% paid after drywall in
approx 22% paid after cabinets are installed
slightly under 10% paid when job is complete

Honestly, I'd really like to hold more until the job is complete as insurance. I've never worked with this contractor before although my kitchen designer has. If he walks away after the cabinets are installed, I only have 10% as recourse. I'd really prefer to pay 75% along the way and hold 25% until the end. Does that seem reasonable. Would love advice from anyone who has already been through this. Thanks!