Renovation advance payment: how much and when to pay

Why an advance is asked for

In a renovation a large part of the costs arise before the first day of work: materials, tiles, doors, plumbing. If the contractor buys the materials, the advance can cover exactly those. If you choose and buy the materials yourself, the need for an advance is smaller, and the work can be paid for by stages after completion.

So before talking about an advance, clearly separate work and materials in the estimate. Prices are for labour. Materials are calculated separately in the estimate. In the request you can write whether you will choose the materials yourself.

How to split the payments

1. Tie the advance to a specific item Write in the contract what the advance is paid for: for example tiles and waterproofing materials for the bathroom. Then it is clear what you can ask back if the work does not start.
2. Pay by stages Divide the estimate into stages that can be checked: demolition, utilities, wet rooms, finishing. Pay for each stage after you accept it.
3. Keep the final payment back Pay the last part after the work is accepted and the defects are remedied.
4. Ask for receipts for materials If the contractor buys materials with your advance, ask for the purchase receipts or invoices.
5. Pay by bank transfer or against a receipt In a dispute the customer has to prove payment, for example with a receipt or correspondence. A bank transfer with the purpose “advance under estimate No. 12” is clear proof.

Example with an estimate

A 2-room apartment of 50 m², cosmetic renovation: 50 × €100 = from €5,000 (labour), materials in the estimate separately. In such an estimate it makes sense to separate two payment parts: the materials, which can be paid against receipts when they are bought, and the labour, which is paid by stages after completion.

In a bathroom, similarly: tiling 18 m² × €24 = from €432, waterproofing 5 m² × €6 = from €30, floor drain installation from €100, a total of from €562 for these three jobs. Each of them can be accepted separately before the next follows. A whole bathroom renovation is from €3,000.

If the work does not start or is late

The Consumer Rights Protection Law provides that if no deadline has been agreed, the service is provided within a reasonable time. If the provider is late, the consumer gives an additional deadline. If that is not met either, the consumer can withdraw from the contract, and the money paid must be refunded within 14 days.

1. Remind them in writing Send a message or e-mail with the date of the contract, the amount paid and a new deadline.
2. Withdraw from the contract If the additional deadline is missed, give written notice of withdrawal and ask for a refund.
3. Contact PTAC The consumer can ask the Consumer Rights Protection Centre (PTAC) or the Consumer Disputes Resolution Commission to assess the provider's conduct.

Renovation scams: warning signs

• There is no company name or registration number; if construction work is offered, the company is not in the Register of Construction Merchants.
• They ask for a large cash advance with no receipt.
• They refuse a written estimate or contract.
• The advance is tied neither to materials nor to a stage, but is “to reserve the time”.
• They press you to pay before the apartment has been seen and an estimate drawn up.

Providing construction services without registration in the Register of Construction Merchants can end, for a legal entity, in a fine of up to 1,000 fine units (up to €5,000). The BIS register is available free of charge: Register of Construction Merchants.

Write it in the contract

Write the advance amount, what it is paid for, the schedule of payments by stage and the procedure for refunding the advance if the contract is terminated. The other points of the contract: renovation contract. We agree the price and the list of work before the job starts.