Renovation work is funded by the client in stages, and the schedule you write into the quotation decides whether your firm ever pays for someone else's materials out of its own pocket.
Why stages exist at all
A renovation job spends money before it earns it. Carpentry deposits, tiles, electrical materials and subcontractor deposits all fall due before the client sees a finished room. Progress payments exist so the money arrives roughly in step with the spending.
When they fall out of step, the firm becomes the bank. That is survivable on one project and painful across ten.
Tie stages to work, not to dates
The single most useful rule: a payment stage should name something a person can stand in the unit and see.
- On signing
- On commencement, after hacking and protection
- On completion of carpentry installation
- On completion of painting and finishes
- On handover
A stage that says "week six" invites a claim for work that is not finished, and a client who refuses to pay it. A stage that says "carpentry installed" settles itself.
Keep the first payment honest
The deposit should cover what you commit before you start: deposits to suppliers, protection materials, and the first trade's mobilisation. If the deposit is smaller than your committed cost at that point, the gap is coming out of the company's cash.
Say what a claim contains
A progress claim is easier to approve when it shows the same structure as the quotation: which stage, what was completed, the amount, and what remains. If the claim looks nothing like the document the client signed, it will sit on someone's desk.
Retention, if you use it
Some clients hold a small percentage until the defect period ends. If that is agreed, write it into the quotation with the release condition and date. Retention that is not written down is retention you will chase.
GST belongs on the schedule
If your business is GST-registered, the prevailing rate is 9 per cent, and it should be shown on each claim rather than mentioned at the end. Check the current rate with IRAS before you quote — it has changed twice in recent years, and old templates have a way of surviving.
Watch three numbers, weekly
Committed cost, amount claimed, amount collected. A project where committed cost is running ahead of collections is a project funding itself out of your bank account, and you want to know that in week three rather than at handover.
That is the picture EnQuote's cashflow view is built around: costs and purchasing on one side, claims and collections on the other, per project.
Common questions
How many payment stages should a renovation project have?
Enough that no single stage leaves you funding the next trade out of pocket, and few enough that each one is worth invoicing. Four to six stages is common for a residential project.
Should each payment stage be tied to a date or to work done?
Tie it to work that can be seen on site. A stage tied to a calendar date will be claimed while the work behind it is still unfinished, which is what causes disputes.
What GST rate applies to renovation work in Singapore?
The prevailing GST rate is 9 per cent for GST-registered businesses. Check the current rate on the IRAS website before quoting.