Paying a renovation crew by stage: how to agree and pay
To avoid overpaying in advance, pay the crew for accepted stages: the work is done, checked, remarks are fixed - then payment. If an advance is needed, tie it to buying materials and back it with receipts. Write the payment terms into the contract in advance, and keep the last payment for final acceptance: it's made once the list of remarks is closed and the work is checked against the budget.
Why by stage and not all at once
If you pay everything in advance, nothing is left to hold the deadlines and quality. If you pay only at the end, the crew has nothing to work with and won't agree. Paying by stage is the middle ground: each part of the money goes for a specific, accepted result.
Renovation already goes in stages. In the app route almost every stage ends with the item “Accept the stage”: the owner or designer checks the work, and only then does the crew move on. These points make convenient payment points.
What the law says
A renovation done to the client's order is a work contract (chapter 37 of part two of the Civil Code of the Russian Federation). A few articles about money:
- Article 711 “Procedure for paying for work”. If the contract doesn't provide for prepayment of the work or its individual stages, the client pays after the final handover of the result - provided the work is done properly and on time, or early with the client's consent. So stage payments and an advance need to be written into the contract explicitly.
- Article 709 “Price of work”. The price can be approximate or fixed; unless the contract says otherwise, it's considered fixed. If the approximate price is significantly exceeded because of extra work, the contractor must warn the client in good time.
- Article 713. If the client supplies the materials, the contractor uses them economically, reports on their use and returns what's left.
- Article 720. The client accepts the work with the contractor taking part and reports any deviations found straight away.
This is a summary with no promise of an outcome; read the articles in their current wording at pravo.gov.ru. These are Russian rules; other countries have their own.
How people usually agree: a payment scheme
Below is a common arrangement. You decide the shares and amounts with the crew: they aren't given here because they depend on the scope of work and on who buys the materials.
- An advance for materials. If the crew buys the rough materials, the advance is tied to a shopping list and backed by receipts. If you buy the materials, no advance for them is needed.
- Payment for a stage after acceptance. Demolition, partitions, plumbing, electrical, rough finishing, screed, waterproofing, tiling, walls, floors, final installation - each stage is paid for once it's accepted.
- Hidden work - only after checking. Plumbing and electrical are paid for after the pressure test, the insulation measurement and photos of the pipes and wiring, not after the pipes are closed up.
- The last payment - at final acceptance. In the route this is the item “Make the final payment”: check the completed work against the budget and settle up. Its hint: check the “Budget” section before the last payment.
It helps when the stage amounts in the contract match the sections of the estimate: then it's clear exactly what you are paying for. How to lay out an estimate is in How to draw up a renovation estimate.
How not to overpay: rules
- Pay for results, not time. “A week of work” isn't a result; “the screed is poured, gaps are within what was agreed, moisture is measured” is.
- Don't pay for a stage that isn't accepted. If there are remarks, first the fix, then the payment.
- Extra work - in writing and before it starts. What, how much, who pays for materials.
- Every payment with proof. A transfer with a payment reference, a signed receipt or a cash receipt: “for the ‘Electrical’ stage under the contract of …”.
- An advance against purchases. Material receipts go into the budget, leftover materials stay on site.
- The last payment - after the list of remarks is closed. The route says it directly: sign the certificate only when the list of issues is fully closed.
If the crew asks for more
During a renovation, work that wasn't in the estimate sometimes turns up: crooked walls turn out to be more crooked, the screed under the old tiles is crumbling. That's normal if it's discussed before the work starts:
- the contractor shows what was found - preferably with photos;
- you decide together what to do and what it costs;
- the agreement is written down: an addendum to the contract or a letter with the amount that you agreed to in writing;
- only then - the work and the payment.
If the contract price is fixed and you didn't order extra work, a demand for more money is a reason to reread the contract and article 709. A disputed case is a matter for a lawyer.
Stage payment checklist
- The contract lists the stages, amounts and payment terms.
- It's clear who buys which materials.
- The advance is tied to purchases and backed by receipts.
- Each stage is paid after acceptance, not before.
- Hidden work is accepted from photos and tests before payment.
- Extra work is agreed in writing.
- All payments are recorded in the budget.
- The last payment comes after remarks are closed and the budget is checked.
How to run it in the Doma app
Enter each payment to the crew in the “Budget” tab → “+ Add expense”: amount, budget category, date and a comment - for example, “payment for the ‘Tiling’ stage”. Material receipts can be added with “Scan receipt” using the QR code: the amount and date fill in themselves. Your own categories: “Expense categories” → “+ Add category”, for example “Crew labor”. Only the owner and designer see the budget: it's closed to contractors and foremen. How to track expenses is in Budget, expenses and receipts, and what to put in the contract is in The contract with a crew: what to include.