Progress Payments

Progress payments are installments the homeowner pays as specific portions of the job are completed. Instead of paying the full contract price upfront, the homeowner releases payments only when clearly defined work milestones are finished.

In NYC, progress payments come with strict rules: each payment must be tied to actual completed work or delivered materials, must have a reasonable relationship to that work, and must be protected through an escrow account, surety bond, or contract of indemnity. These rules prevent contractors from collecting large sums before the work is done and protect homeowners from financial risk.