Safe Way to Pay a Contractor in Miami: Milestone Payment Schedule Guide
The safe way to pay a contractor in Miami is to pay only for work you can see, one milestone at a time, and to collect lien releases as you go. This guide explains the safe way to pay a contractor in Miami: milestone payment schedule basics, the Florida laws behind them, and the checks to run before you release each payment. At Tepui, we bill this way on every job because we don't vanish, and our payment structure is built to prove it.
What is the safe way to pay a contractor in Miami?
The safe way to pay a contractor in Miami is a milestone payment schedule: you pay a set amount each time a defined, visible stage of work is finished, instead of paying a large sum before work starts. Your money follows the progress, never the other way around.
A good schedule has three parts. Each milestone is written into the contract in plain words. Each payment is tied to something you can walk through and check. And each payment comes with proof that the people who worked on your home have been paid.
That last part matters more than most homeowners realize. In Florida, paying your contractor does not always mean your property is safe from claims by unpaid subcontractors or suppliers. We cover how to protect yourself from that below.
What does Florida law say about contractor deposits?
Florida law does not ban deposits, but it puts deadlines on contractors who take a big one. Under section 489.126 of the Florida Statutes, a contractor who receives an initial payment of more than 10 percent of the contract price must apply for the needed permits within 30 days of the payment.
The same law says that contractor must start the work within 90 days after all necessary permits are issued. If they don't, the owner can send a written demand by certified mail asking the contractor to apply for permits, start work, or refund the payment.
If the contractor fails to act within 30 days of receiving that written demand, the statute allows an inference that they had no just cause for the delay. The law also says a contractor who has received more money than the value of the work completed may not stop working for any 90-day period, or any other period agreed to in the contract.
These rules help after something goes wrong. A milestone schedule is about making sure it never gets that far, because the contractor never holds much more of your money than the work they have already done.
What does a safe milestone payment schedule for a Miami contractor look like?
A safe milestone payment schedule lists the stages of your project in order and ties one payment to the end of each stage. The stages vary from job to job, but a typical residential remodel in Miami-Dade follows a pattern like this one.
- 1.
Permits issued. Plans are approved and the permit is posted. You can confirm it yourself before anything else happens. Our guide to the Florida general contractor permit process walks through this stage.
- 2.
Demolition and rough-in complete. Old finishes are out, and new plumbing, electrical and framing are in place and ready for inspection.
- 3.
Rough inspections passed. The building department has signed off on the work behind the walls before it gets covered up.
- 4.
Finishes installed. Drywall, tile, cabinets, fixtures and trim are in. This is the stage you can see most clearly.
- 5.
Final inspection and punch list. The job passes final inspection, you walk the space, and every punch-list item is closed out before the last payment.
Notice what is missing: a large payment before step one. If a contract asks for half the price before a permit is even applied for, you are paying on faith, not on progress.
How our milestone payment schedule makes it safe to pay a contractor in Miami
Tepui Construction is a Florida general contractor that takes zero money upfront. You do not put money down to start. The full payment schedule, with the scope and dollar amount for every stage, is written into page 2 of the standard Tepui Construction contract before work begins. The total project price is split across defined milestones: permits approved, demolition complete, rough-in inspections passed, finishes installed, and a final walkthrough with the punch list cleared. Each payment comes due only after the milestone tied to it is finished and documented, so every invoice matches work the client can see. The common industry model works the other way, with a large deposit paid before any work begins, which puts the homeowner's money at risk if the contractor leaves early. Because we are paid when you see progress, our incentive is to keep the job moving and finish it. We also schedule honestly, so a two-month job may be quoted at three months, because we would rather finish early than late. Tepui stays. We stay. We finish. We come back.
How do I make sure I don't pay twice?
To avoid paying twice, collect a written release of lien from anyone who has sent you a Notice to Owner before you make each payment, and ask for your contractor's final payment affidavit before you release the last payment. Here is why that matters under Florida's Construction Lien Law.
For residential contracts over $2,500, section 713.015 of the Florida Statutes requires a disclosure that says unpaid subcontractors and suppliers may look to your property for payment, even if you have already paid your contractor in full. The same disclosure recommends that your contract require a written release of lien before any payment is made, from any person or company that has given you a Notice to Owner.
- •Notice to Owner.: Subcontractors and suppliers serve this notice before they start, or no later than 45 days after they start, furnishing labor, services or materials. Keep every one you receive. It tells you who needs to be paid.
- •Notice of Commencement.: Florida law requires that a notice of commencement be recorded and posted on the job site before the first inspection. Improvements with a direct contract price of $2,500 or less are exempt from most of the lien law.
- •Final payment affidavit.: Under section 713.06, the contractor's final payment affidavit states that all lienors under the direct contract who timely served a notice to owner have been paid in full, or names each one not paid in full and the amount due. The contractor must deliver it to the owner at least 5 days before filing suit to enforce a lien. Asking for it before you release the last payment is a simple way to see who is still owed.
The state also requires permit offices to warn owners that failing to record a notice of commencement may result in paying twice, and to advise anyone using financing to consult their lender or an attorney before recording it. Florida's own disclosure language calls the lien law complex and recommends talking to an attorney, which is good advice for any large project.
What should I check before releasing each milestone payment?
Before releasing any milestone payment, confirm the work is done, the inspection passed if one was required, and the lien releases for that stage are in your hands. A short checklist keeps this routine instead of stressful.
- •Read the payment terms.: Before you sign, make sure the contract names each milestone in plain words and states the amount due when that stage is finished.
- •Walk the milestone.: See the finished stage in person or by photo and video before you pay. The invoice should describe the same work you are looking at.
- •Check the inspection record.: For stages that need inspections, confirm the result with the building department, not just the contractor's word.
- •Match releases to notices.: Compare the lien releases to the Notices to Owner you have received. Every name on a notice should have a matching release for the work paid so far.
- •Pay by traceable method.: Use check or bank transfer so every payment has a record tied to a milestone and a date.
- •Keep the final payment for last.: Do not release it until the final inspection passes, the punch list is closed, and the final payment affidavit is delivered.
If you are still choosing who to hire, our guide on how to hire a general contractor in Miami without a large deposit covers the questions to ask before you sign.
Why a Miami contractor who does not take full payment upfront is worth finding
A contractor who does not take full payment upfront has the same incentive you do: finish the next stage, and finish it well. When payment follows progress, the schedule is protected by the payment structure itself, not by trust alone.
That is the whole idea behind how we work. You do not put money down to start, and each payment comes due only after the milestone tied to it is finished and documented. When something is wrong after completion, we come back and fix it. We don't vanish.
You can read more about how this works for homeowners on our no-deposit contractor in Miami page.
Frequently Asked Questions
Q: Is it legal for a Florida contractor to ask for a deposit?
A: Yes. Florida law allows deposits, but under section 489.126 a contractor who receives more than 10 percent of the contract price upfront must apply for permits within 30 days and start work within 90 days after permits are issued.
Q: What is a milestone payment schedule?
A: A milestone payment schedule is a contract term that ties each payment to a finished, visible stage of work, such as permits issued, rough inspections passed or finishes installed. You pay for progress instead of paying ahead of it.
Q: What is a release of lien and why do I need one?
A: A release of lien is a written statement from a subcontractor or supplier that they have been paid for their work on your property. Florida's required lien law disclosure recommends getting one before each payment from anyone who has sent you a Notice to Owner.
Q: When should I make the final payment to my contractor?
A: Make the final payment only after the final inspection passes, the punch list is complete, and you have the contractor's final payment affidavit described in section 713.06 of the Florida Statutes.
Q: Does Tepui Construction take a deposit?
A: No. You do not put money down to start. The full payment schedule is written into page 2 of our standard contract, and each payment comes due only after its milestone is finished and documented.
Q: What is a Notice to Owner?
A: A Notice to Owner is a notice from a subcontractor or supplier telling you they are working on your property. Under section 713.06 of the Florida Statutes, it is served before they start, or no later than 45 days after they start, furnishing labor, services or materials.
Conclusion
The safe way to pay a contractor in Miami comes down to one rule: your money should never get far ahead of the work. Tie each payment to a visible milestone, collect lien releases as you go, and hold the final payment until the affidavit is in hand.
That is how we run every project at Tepui. Paid when you see progress. We stay, we finish, and we come back. Start without a deposit →