Milestone-based payment structure
Contractor payments are where most people get scammed in Ghana construction. Here is how to protect yourself with a milestone-based payment structure.
The Golden Rules
Never Pay More Than 15% Upfront
This should only cover initial mobilization and materials. Anything more is too much risk.
Pay Only for Verified Work
Before each payment, verify the work. Your architect should inspect and confirm. Get photos and a written report.
Never Pay Based on Promises
Only pay for completed, verified work. Verbal assurances are worthless without documentation.
Milestone Payment Structure
- Mobilization: 10-15%
- Foundation complete: 20%
- Structural frame complete: 25%
- Roof complete: 15%
- Finishes complete: 15%
- Final handover: 10-15% after defects period
Keep 10% Until After Defects Period
This gives you leverage to ensure the contractor returns to fix any issues. Release it only after all snagging is complete.
Documentation Required
Photos, signed approvals, receipts, bank transfer confirmations. These are your protection. Keep everything.
If a contractor refuses milestone payments, walk away. No legitimate contractor needs full payment upfront.