Driveway Progress Payment: Paying as Work Completes

What a Driveway Progress Payment Plan Really Is

A driveway progress payment is a staged payment schedule that ties each installment to a verifiable milestone in your driveway project. Instead of handing over 100 % of the money up front—or gambling on one final payment when the job is done—you release funds only as specific phases of work are completed and approved.

This approach protects your budget, keeps the contractor motivated, and gives you leverage if something goes sideways. Below, we’ll walk you through every step so you can set up a fair, enforceable plan before the first shovel hits the dirt.

Top 5 Benefits of Paying as Work Completes

1. Cash-Flow Protection

You keep the bulk of your money until you can see, touch, and test the finished product. If the crew disappears tomorrow, you still have the funds to hire a replacement.

2. Built-In Quality Control

Each payment is a “mini-inspection.” Sub-par base layer? No check until it’s fixed. This prevents small issues from becoming expensive headaches later.

3. Contractor Accountability

Pros who agree to progress payments are confident in their work. The schedule rewards speed and quality, not just promises.

4. Project Momentum

Contractors like predictable cash flow. A clear timeline encourages them to stay on schedule instead of jumping between jobs.

5. Dispute Reduction

Arguments usually center on money. When payments match visible results, there’s less gray area—and fewer heated phone calls.

Typical Driveway Progress Payment Schedule

Every project differs, but most residential driveway installations break into five phases. Use the percentages below as a starting point when you negotiate.

1. Deposit / Permit Pull: 10 % due upon contract signing and permit acquisition.
2. Site Prep & Base Installation: 25 % after excavation, grading, and compacted aggregate base are approved.
3. Edge Restraints & Drainage: 20 % once edging, joint sand, and drainage components are in place.
4. Surface Placement: 30 % after the final surface (concrete, asphalt, pavers) is laid and meets thickness specs.
5. Final Walk-Through & Seal: 15 % balance when punch-list items are finished, sealant is applied, and debris is removed.

Adjusting the Milestones

Stamped concrete or elaborate paver patterns may warrant an extra stage. Conversely, a simple gravel driveway could compress into three payments. Customize, but always document changes in writing.

How to Negotiate a Fair Payment Plan

Know Local Laws First

Several states cap the upfront deposit (often 10-33 %). Check your state contractor board before you propose any numbers.

Get Everything in the Contract

Spell out each milestone with objective criteria. “Driveway looks good” is worthless. “4-inch reinforced concrete slab placed, finished, and cured to PSI 3,000” is enforceable.

Tie Payments to Inspections

Invite a third-party inspector or use the municipal building inspector’s sign-off as a trigger. The small inspection fee beats re-pouring half a driveway.

Keep a “Hold-Back”

Retain at least 10 % until you perform a final walk-through with the foreman. This gives you leverage for touch-ups like seal-coat skips or hairline cracks.

Red Flags: When to Walk Away

• 50 % or more up front: Classic scam warning. Reputable contractors have credit lines with suppliers.
• Cash-only deals: Legit businesses accept checks or cards and provide receipts.
• No written schedule: A verbal “pay me when you’re happy” is not a plan; it’s a trap.
• High-pressure discounts: “Sign today for 20 % off” usually means they need your money more than you need their work.

Hidden Costs to Budget Between Payments

Progress payments cover the contractor’s labor and materials, but homeowners often forget the extras. Set aside 10-15 % above the bid so you’re not caught off guard.

Permit & Inspection Fees

Some towns charge $75, others $400. Confirm who pays—the clause should appear in your agreement.

Utility Locates

811 marks public lines for free, but private lines (landscape lighting, sprinkler loops) are your responsibility. Budget $200-$500 for a private locate if you have those extras.

Base Upgrade

After excavation, soft clay may require geotextile fabric or an extra 2 inches of stone. Agree on a unit price per ton before work starts.

Weather Delays

Concrete can’t be poured in a downpour. You may eat an extra week of rental fees for a dumpster or portable toilet.

Homeowner Checklist for Each Payment Release

1. Take date-stamped photos of the completed phase.
2. Compare measurements in the contract to what’s in the ground (thickness, square footage, slope).
3. Verify lien waivers from the contractor and major suppliers for the previous payment.
4. Confirm city or third-party inspection has passed.
5. Sign a written release only after 1-4 are satisfied.

Sample Clause You Can Copy into Your Contract

“Payment Schedule: Owner shall pay Contractor according to the following milestone schedule within three (3) business days after written notice that the milestone is complete and inspected to Owner’s reasonable satisfaction. Each payment is contingent upon Contractor providing a partial lien waiver for labor and materials provided through the previous milestone.”

Frequently Asked Questions