Pay upfront or at the end of service

When do we pay for services? At the beginning, at the end, in stages?


Why do customers assume that it’s OK to pay builders or renovation companies at the end of the work?
Building companies provide a service for customers, and depending on the project size, it can be paid in stages.

For example, at Luxurian Homes, after we agree over a starting date and cost, we usually offer 3 payment installments, e.g. 30% at the beginning, 30-50% at the middle of the project, and the rest at the end. This is all written in the contract that we sign with the customer.

We also offer guarantees, so be rest assured that in the unlikely event that something goes wrong, we got it cover.

A reason of people wanting to pay at the end is because they don’t trust the company/tradesmen.

In the last years, a lot of bad things happened with building or renovation projects. This happened because homeowners paid all money upfront, they didn’t know who to trust or choose the cheapest quote.

Now let’s take each reason and discuss upon them

1. When you pay a big portion of the money upfront to a tradesmen, he now has secured the work with you, so he will go and search for the next customer, so he has continuity after he finishes your project.

Maybe this happened to you in the past.

2. Another thing that may happen is that you chose a tradesmen without vetting him first. Maybe you thought he’s a professional, or inspired a lot of trust in you. After the work finished, you realized that you dealt with a ‘cowboy’. A ‘cowboy’ means he doesn’t know the trade or he’s not reliable.

A few weeks ago we wrote an article, where we discuss about top renovation companies in Coventry which you can choose from

3. The last possible reason could be that you went for the cheapest quote, thinking that all tradesmen are the same and you also keep your costs low. Again, after the work is finished and the tradesman is gone, you realize what a poor job he did, and why he quoted you like he did.

As a general rule, you should go with the middle or highest quote if you’re dealing with a reputable business/tradesman. The money that you pay for the service is worth it, as you’ll get quality services.


Let’s go deeper in understanding what do homeowners worry about when renovating.

Homeowners worries change over the course of the project.

Initially, owners worry most about what they can afford.

Then they worry about making decisions with a partner.

Then comes choosing people for the job and wondering what all the horror stories are about. They know that lots of people have troubles on construction jobs, but don’t know why or how they can preempt that. So they worry about being taken advantage of.

They are rarely prepared for the volume of decisions they have to make, and tend to worry about getting everything done in a way they won’t regret later. If one partner is more responsible for the owner’s participation in the project, that partner hopes the other remains supportive and thinks he’s doing a good job. Toward the end, most owners worry about stamina and patience, as they just want the project to be over.

The good news is you can remove much risk and lessen most of these worries through good planning. You can have a budget, a clear shared vision, and most decisions made before you even meet a contractor.

A contractor does have opportunities to take advantage. Not all will be revealed to you. You have no way of knowing for sure that the prices you receive from him reflect his actual costs plus a reasonable profit. You have to go on faith much of the time, and ultimately, you are forced to take it or leave it when it comes to prices. Some people really don’t enjoy this part of the process. So how do you know you can trust this person? Past behavior is the best indicator of future actions, and people tend to be quite consistent in their treatment of others. So rely on those references. They will paint a fairly clear picture of whom you’re considering for your contractors.

So there you have it. We explored how and when you should pay for services.

Furthermore, we discuss about homeowners worries when renovating and how to deal with that.