What is a progress payment schedule for home renovations?

A progress payment schedule for Ottawa home renovations is a structured plan that breaks your total project cost into installments tied to specific completion milestones, protecting both you and your contractor while maintaining healthy cash flow.

Under Ontario's Construction Lien Act, you're required to hold back 10% of each payment until 60 days after substantial completion - this is your legal protection against liens. A typical Ottawa renovation payment schedule might look like:

Standard Ottawa Renovation Payment Structure:

Start with a deposit of 10-15% maximum when you sign the contract. Never pay large upfront amounts - legitimate Ottawa contractors don't need significant money before starting work. The deposit should cover initial material orders and mobilization.

The bulk of payments should be tied to measurable completion stages. For a kitchen renovation in Ottawa, this might be: 20% when demolition is complete and permits are pulled, 25% when rough electrical and plumbing pass City of Ottawa inspections, 25% when drywall and flooring are finished, and 15% at substantial completion (before your 10% holdback).

Ottawa-Specific Considerations:

City of Ottawa Building Code Services (613-580-2424) requires inspections at various stages. Your payment schedule should align with these inspection points - never pay for electrical work until it passes ESA inspection, or plumbing until it meets Ontario Building Code standards. This protects you from paying for work that might need costly corrections.

For projects requiring ESA electrical permits or TSSA gas permits, include inspection passage as payment triggers. A contractor pushing for payment before inspections pass is a red flag - legitimate contractors in Ottawa know these requirements.

What to Watch For:

Be wary of contractors requesting large upfront payments or asking for payment ahead of work completion. Ontario consumer protection laws limit deposits, and reputable Ottawa contractors understand proper payment flow. Avoid contractors who want 50% upfront or payment for materials before delivery.

Never agree to payment schedules that front-load money to the contractor. Each payment should reflect actual work completed and materials installed. If a contractor claims they need money for material deposits, offer to pay suppliers directly or verify the story.

Protecting Yourself:

Always document what triggers each payment in writing. Take photos before making payments to verify completion stages. Remember your 10% holdback isn't negotiable under Ontario law - it's held for 60 days after substantial completion to protect against construction liens.

For larger Ottawa renovations over $50,000, consider having payments tied to City of Ottawa inspection approvals. This adds an official verification layer to your payment schedule.

Official Resources:

Review Ontario's Construction Lien Act requirements at ontario.ca, and consult City of Ottawa Building Code Services at ottawa.ca/building for inspection scheduling. For disputes over payment schedules, Ontario consumer protection services can provide guidance on your rights as a homeowner in Ottawa.