In this guide · 8 sections
- 01What the published standards say about renovation deposits
- 02A milestone payment schedule that works
- 03Set up quotes and progress invoices in Xero or QuickBooks
- 04Variation orders: get them signed digitally
- 05GST on deposits, progress payments and retention
- 06Collect payments and chase them without awkward calls
- 07Do it yourself or get help?
- 08Frequently asked questions
Short answer
Send a quote, take a deposit (CaseTrust firms cap it at 20% of the total cost), then raise progress invoices from the same quote at agreed milestones. Get every variation order signed before work starts, and account for GST at the earlier of invoice or payment.
What the published standards say about renovation deposits
There is no single government payment table for renovation work, but there is a published benchmark. The CaseTrust Accreditation for Renovation Businesses page says accredited firms must adopt the CaseTrust Standard Renovation Contract, buy a deposit performance bond, collect payments in phases upon agreed milestones, cap the initial deposit at 20% of the total cost and give a 12-month workmanship warranty.
Even if you are not accredited, homeowners increasingly compare quotes against that standard. Asking for 50% upfront now looks like a warning sign, so build your billing around a modest deposit and clear milestones.
A milestone payment schedule that works
Tie each payment to a stage the homeowner can see and check, not to a calendar date. The stages below are an example structure, not a rule. Agree the actual stages and percentages in your contract.
| Stage | Typical trigger | Billing document |
|---|---|---|
| Deposit | Contract and quote signed | Deposit invoice from the accepted quote; receipt on payment |
| Progress 1 | Hacking, masonry and wet works done | Progress invoice for the completed portion |
| Progress 2 | Carpentry delivered and installed | Progress invoice for the completed portion |
| Progress 3 | Electrical, painting and fittings done | Progress invoice; variation orders billed separately |
| Final | Handover and joint inspection | Final invoice; any retention released after defects are cleared |
Set up quotes and progress invoices in Xero or QuickBooks
Both main accounting tools can turn one accepted quote into a chain of staged invoices, which keeps the balance visible to you and the homeowner. Xero's help centre covers progress invoices for deposits, prepayments and progress to date, and QuickBooks Singapore has progress invoicing from an estimate.
Build a quote template with standard line items
Group lines by trade: hacking, masonry, flooring, carpentry, electrical, plumbing, painting. Use saved items with descriptions so quotes are consistent and easy to compare.
Send the quote and record acceptance
Send it from the accounting tool so acceptance is logged. Attach the signed contract to the quote record.
Raise the deposit invoice from the accepted quote
Create a deposit or percentage invoice linked to the quote, not a separate one-off invoice. Add a payment link so the homeowner can pay by PayNow or card.
Raise each progress invoice from the same quote
At each milestone, invoice the completed portion. The tool shows what has been billed and what is left.
Add variation orders as their own lines
Bill signed variations on the next progress invoice, with the VO number in the description.
Turn on reminders
Set automatic reminders for overdue invoices, a few days after the due date and again a week later. Our invoice reminders guide has the settings.
Variation orders: get them signed digitally
Variations are the most common source of renovation billing disputes: the homeowner remembers a 'small change', the firm remembers a priced extra. Fix it with a rule that no variation work starts until a variation order is signed.
- Use a one-page VO template: VO number, description, price, effect on timeline, and signatures
- Send it for e-signature from a phone on site so it takes two minutes, not a week
- File the signed PDF against the project and the quote in your accounting tool
- Show approved VOs as separate lines on the next progress invoice
- Record omissions (work removed) the same way, as negative lines
Our comparison of DocuSign and Sign with Singpass explains which e-signature options suit homeowners and how to keep a proper record.
GST on deposits, progress payments and retention
If you are GST-registered, timing matters. IRAS's construction sector page/specific-business-sectors/construction) says that for progress payments, and for retention sums, you account for GST at the earlier of when payment is received or when an invoice is issued. It also notes that a letter of claim is usually not a tax invoice.
IRAS's invoicing page/basics-of-gst/invoicing-price-display-and-record-keeping/invoicing-customers) says a tax invoice must be issued when your customer is GST-registered, generally within 30 days of the time of supply, and that you keep tax invoices for at least 5 years. Most homeowners are not GST-registered, but commercial fit-out clients often are. See our GST tax invoice guide for the required fields.
Collect payments and chase them without awkward calls
Put a payment link on every invoice. PayNow is cheapest for large renovation sums, while cards suit homeowners who want to spread the cost, at a higher fee. Payments then match to invoices automatically instead of someone checking bank statements. Our guide to payment links and PayNow invoices compares the options.
Automate the chasing, too. A simple workflow can watch for a milestone being marked done in your project tracker, create the progress invoice draft, notify the project manager to check it, and send reminders if it is unpaid. People still approve each invoice; the system just stops anything being forgotten.
Do it yourself or get help?
A small firm can set this up in Xero or QuickBooks over a weekend: quote template, deposit and progress invoice habit, VO template and reminders. The discipline to raise invoices from the quote every time matters more than the software.
Renovation billing set-up
If you want it set up for you, our Xero / QuickBooks Integration (S$390) connects your accounting, payments and bank feed with branded quote and invoice templates. Online Payment Setup (S$290) adds PayNow and card links, and Workflow Automation (S$390 per workflow) can create progress invoice drafts and reminders from your project tracker. The renovation website guide covers how to explain your payment terms to homeowners.
Frequently asked questions
There is no general legal cap for all contractors, but CaseTrust-accredited renovation firms must cap the initial deposit at 20% of the total cost and collect the rest in phases on agreed milestones. Many homeowners use this as a benchmark, so a deposit well above it often makes them hesitate or look elsewhere.
If you are GST-registered, IRAS treats the time of supply for most transactions as the earlier of invoice or payment, and its construction page applies the same rule to progress payments and retention sums. A deposit paid towards the work usually triggers GST when received. Confirm your situation with your accountant or IRAS.
Yes. Xero can raise progress invoices for deposits, prepayments and work completed to date, and QuickBooks Online can split an estimate into several progress invoices. Linking every invoice to the original accepted quote keeps track of what has been billed and what remains, which helps with homeowner questions.
A variation order should have a number, a clear description of the added or removed work, the price, any change to the timeline, the date and signatures from both sides. Get it signed before the extra work starts, file it with the project, and bill it as a separate line on the next progress invoice.
Cards are convenient for homeowners but cost more in fees on large sums, so many firms offer PayNow for progress payments and cards as an option. Whatever you accept, put a payment link on each invoice so payments match automatically and receipts go out without manual work.