Staged Payment Schedule: You Only Pay for Finished Work
Your money should never run ahead of the work. Every payment is tied to a construction stage that can be seen and verified — not a calendar date, not a big advance. This is our reference schedule, following the same pattern LPPSA and the panel banks use.
- Stages
- 7
- Confirmation deposit
- 5%
- Retention
- 5%
One of the questions asked most often, and answered least clearly in this industry: when does the money go out? The table below is the answer. Each stage states what must be finished and verified before a claim is made.
The example below uses a construction cost of RM450,000 to show the real amount at each stage. The final schedule and terms are set out in your contract; the contract is what binds, not this page.
| Stage | Verification required | % | Example RM450,000 |
|---|---|---|---|
| 1. Confirmation deposit After the contract is signed and the working drawings are finalised. This books your construction slot and starts mobilisation. | Contract signed, approved plans received | 5% | RM22,500 |
| 2. Site work & foundations Site clearing, setting out, excavation, concrete footings and foundations completed, tested and verified by the engineer. | Foundations verified, the relevant Form G signed | 15% | RM67,500 |
| 3. Ground-floor structure Ground-floor columns, beams and slab completed. For a two-storey house, this includes the upper floor slab. | Structure verified by the engineer | 20% | RM90,000 |
| 4. Walls & roof Brickwork, roof frame and tiles installed. The house becomes weathertight at this stage. | Roof complete, house watertight | 20% | RM90,000 |
| 5. M&E & plastering Electrical wiring, water piping, sewerage, and plastering of walls and ceilings. | Plumbing and wiring tests passed | 15% | RM67,500 |
| 6. Finishes Tiles, doors, windows, kitchen cabinets, bathroom fittings, paint and external finishes. | All finishes installed | 20% | RM90,000 |
| 7. Handover & retention Paid after a joint inspection and once the defects list is cleared. This is the retention that makes sure defects are fixed before the final payment. | Defects list cleared, keys handed over | 5% | RM22,500 |
| Total | 100% | RM450,000 |
How progress claims work
If you finance through LPPSA or a bank, you do not pay us directly during construction. The process:
- A stage of work is completed on site.
- An engineer or supervisor verifies the work complies with the approved plans and signs the stage certificate.
- We prepare the progress claim in the format the financier expects.
- The financier checks it, then pays us directly.
- You receive a record of every disbursement.
Our status as an LPPSA, CIMB and Maybank panel contractor means our claim documents already follow the format they expect. That shortens disbursement times, and it is the only practical benefit of panel status you will actually feel.
Frequently asked
Who pays — me or the financier?
What happens if a stage is slow to be verified?
Can I withhold payment if I am not satisfied?
Does a variation order change this schedule?
Why is the deposit only 5%?
See the real figures for your project
The cost estimator gives the overall total; our formal quotation breaks it into the seven stages above, with the exact amount for each. Both are free.