A Guide to Construction Milestone Payments

Why milestone payments beat lump-sum checks

Large single payments create imbalance: owners fear paying before work is done; contractors fear finishing work without payment. Milestone payments tie each payment to documented, approved progress. On Kealee this applies to construction jobs once permits are in hand: each milestone payment is charged only after the owner approves that milestone, and the contractor is paid through Stripe. Kealee does not hold project funds in advance. Design, permit and site-plan deliverables are paid up front per deliverable.

Structuring milestones

Match payments to inspectable deliverables — foundation, framing, rough-in, finals — not calendar dates alone. In the DMV, align milestones with inspection schedules where possible.

• Define acceptance criteria in writing before work starts
• Hold retainage until punch list completion
• Document change orders before approving additional payments