Bathroom Remodel Payment Schedule: What Each Payment Is Tied To

Short answer: In the seven bathroom remodel contracts we read for this article, payments are tied to stages of the work, not to calendar dates. Six of the seven start with a deposit at signing; the next payment is due the day work starts, and the last one is due after the work is finished and you approve it. In between, the payment steps follow the work: the rough-in inspection, the framing, electrical and plumbing work, or the tile. Before you sign any contract, ask what each payment is tied to and who confirms the stage is done.

What the payment steps are tied to

We read seven of our bathroom contracts. Each one lists its payments in order, and each step is a trigger, not a date:

• Signing. Six of the seven start with a deposit when the contract is signed. One has no deposit line.
• The first day of work. All seven have a payment due on the day the contractor starts.
• The middle of the job. This is where the contracts differ, because it depends on the project:
  • Three tie a payment to the rough-in inspection, which the contract spells out as the electrical, plumbing and framing inspection.
  • Two tie a payment to the framing, electrical and plumbing work being finished. In one of those two, finished tile installation is part of the same step.
  • Six tie a payment to the tile installation being finished.
• The last payment. All seven say the same thing in different words: after the contractor completes the work listed in the contract and the client approves the work, the client pays the rest.

We are not listing amounts here, because they depend on the project. What carries over from one project to the next is the order.

What “rough-in” means for your schedule

Rough-in usually means the stage when the walls are open and the pipes and wires are in place, before anything is closed up. It is the last chance to change where a valve, a light or a drain goes without opening a finished wall. The decisions in our add-ons article are worth making before it.

If your contract names an inspection at this step, ask who does it and what you will see. The contracts we read say what triggers the payment; they do not describe the inspection itself, so it is worth asking what it covers and how you will know it passed.

What the contract says about late payments and changes

Two other lines show up in all seven contracts, and both are about keeping the work and the paperwork in step:

• Late payments. If a payment is not made on time, the contractor has the right to stop work until payment is received. That is another reason to know exactly what each payment is tied to: you can see ahead of time when the next one will come due.
• Changes in writing. The contract may not be modified in any manner unless in writing and signed by both parties. If you want to add a niche or move a light, the change goes on paper and both sides sign it before the work happens, not after. The same line works in your favor: if someone promises something on site, ask for it to be written down.

All seven also say that if the project cannot be built because of special circumstances or force majeure, the construction period may be postponed.

State law has its own rules for the payment schedule, the deposit and permits in a home improvement contract. Those are covered in how to check a Massachusetts home improvement contractor before you sign.

Materials are on a separate clock

The payment steps above are for the work. Materials are separate: in the same seven contracts, the homeowner pays for the materials within 15 days of receiving the receipts. If your contractor buys any materials for you, ask when the receipts will come, so the 15 days do not catch you by surprise. Who buys what, and what to order first, is covered in who buys the materials in a bathroom remodel.

The one-year labor warranty

All seven contracts include a limited one-year warranty on all labor supplied by the contractor. It applies if:

• the property stays in the possession of the owner named in the contract;
• the work has not been subject to misuse, abuse, accident or neglect;
• the work has not been modified, altered or repaired by anyone else; and
• you notify the contractor of a defect within 10 days of discovering it.

The contract also says you give the contractor the first opportunity to inspect the problem and to repair or replace it. The warranty is on the labor. For the products themselves, such as the faucet, the vanity or the tile, ask what the manufacturer’s warranty says and keep the paperwork.

The 10 days is short. If you see a crack in the grout, a drip under the vanity or a door that rubs, write to your contractor that week, with a photo and the date.

Questions to ask before you sign

• What is each payment tied to, and who confirms the stage is done?
• Which stage is the rough-in inspection, and what will I see?
• What happens if I want to change something in the middle? How is it written down and signed?
• Who applies for the permits? The state-law article linked above explains what the contract has to say about it.
• When are material receipts due, and how will I get them?
• What does the warranty cover, for how long, and whom do I write to?

Checklist

• Each payment tied to a stage of the work, not only a date
• First and last payments clear: what starts the first, what triggers the last
• Changes written down and signed by both sides
• Material receipts: when they come, and the 15-day clock
• Warranty: what it covers, the notice period, the person to write to
• A folder with the signed contract, change papers, receipts and photos

FAQ

Do all contractors tie payments to the work? It depends on the contract. The seven of ours that we read use stages of the work. Ask to see the payment schedule in writing before you sign; the state rules are in the article linked above.

What does “client approves the work” mean? In our contracts, the last payment follows the completed work and the client’s approval. Ask your contractor what you will walk through together at the end, such as the tile, fixtures and doors, and what happens if you find something to fix.

Who do I tell if something fails after the work? The contractor named in your contract, within the notice period the contract gives. Put it in writing with a photo and the date, so there is a record. In the seven we read, that is 10 days from when you discover it.

Eric Zhang is the owner of Sun Shore Construction, a general contractor in Greater Boston founded in 2020. He has more than a decade of hands-on renovation experience.

Planning a bathroom remodel? Get a free in-home estimate: call us or fill out the form on sunshoreconstruction.com.