The milestone schedule
The full schedule is below. Column B is the important one: it is what must exist before the money moves.
| Milestone | Verifiable trigger — what must exist before you pay | Stage % | Cumulative % | Amount (Rs) | Typical week |
|---|---|---|---|---|---|
| 1 · Booking | Signed contract, signed BOQ and the full drawing set issued | 10 | 10 | 185000 | Week 0 |
| 2 · Design freeze | All layouts, elevations and 3D views approved in writing; material selections closed | 15 | 25 | 277500 | Week 2 |
| 3 · Site mobilisation | Society NOC in hand, site protection installed, demolition complete | 15 | 40 | 277500 | Week 3 |
| 4 · First fix complete | Electrical and plumbing chased, tested and photographed before plaster | 15 | 55 | 277500 | Week 5 |
| 5 · Joinery at site | Carcasses delivered and installed, shutters at the factory finishing stage | 20 | 75 | 370000 | Week 8 |
| 6 · Finishing complete | Painting, flooring, ceiling and hardware done; power-on and water-on tested | 15 | 90 | 277500 | Week 11 |
| 7 · Snag closure | Signed snag list closed, warranties and as-built drawings handed over | 5 | 95 | 92500 | Week 12 |
| 8 · Retention release | Thirty days of occupancy with no unresolved defect | 5 | 100 | 92500 | Week 16 |
Amounts are a formula on the contract value. GST is payable on each invoice as it is raised, not in a block at the end.
How to agree it
- Put the triggers in the contract, not just the percentages. A percentage with no trigger is a date-based schedule wearing a disguise.
- Cap the pre-site payment at 15 per cent. Beyond that you are financing the contractor rather than the project.
- Keep at least 10 per cent behind snag closure and 5 per cent as retention for 30 days of occupancy.
- Ask for a GST invoice at each stage rather than one at the end; it is how the tax is actually meant to work.
What it protects against
- Paying 50 per cent up front. Common, and the single biggest cause of clients losing leverage on a project.
- A milestone claimed because the date arrived. The trigger column makes that conversation short.
- No money left to enforce snag closure. Ten per cent held back is worth more than any contract clause.
Read the reasoning in interior payment schedule explained, and check clauses with the contract checklist.
Frequently asked questions
How much should I pay before work starts?+
Ten per cent at booking and up to another 15 per cent at design freeze, so no more than 25 per cent before site mobilisation, and no more than 15 per cent before any drawing has been approved. A contractor asking for 40 or 50 per cent up front is asking you to fund their working capital.
Is GST payable on each instalment?+
Yes. GST is due on each tax invoice as it is raised, not accumulated to the end. Your contractor should issue an invoice at each milestone showing the taxable value and the 18 per cent separately. The grand total on this sheet is the all-in figure across the project.
What is a fair retention?+
Five per cent held for 30 days after occupancy, or ten per cent for 60 days on a larger project. It is standard practice and a professional contractor will not object. What they will object to, rightly, is retention introduced at the end rather than agreed at signature.
What if the contractor refuses milestone triggers?+
Ask why. The usual honest answer is cash flow, which is a legitimate concern and can be addressed by adding a milestone rather than by removing the triggers. A refusal to tie payment to any verifiable event at all is a reason to look elsewhere.
Can milestones slip if I cause the delay?+
They should. A well-written contract defines client-caused delay — late approvals, late selections, denied access, unpaid instalments — and allows the programme to extend for it. A schedule that only penalises one side is not one a good contractor will sign.