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How We Work

How payments work on our projects

You should know exactly what triggers every payment before you sign. Here is the whole schedule.

Elusive Construction · CA General B #1112902 · Updated 2026-08-10

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Short answer

A $1,000 deposit — the maximum California law allows on a home improvement contract — followed by milestone draws tied to completed, verifiable work. You never pay ahead of the build.

The schedule

Each draw is tied to a stage you can walk up to and look at. Two of them are tied to an inspection passing, which means a third party has signed off before the money moves.

  1. Deposit — $1,000

    The statutory maximum on a California home improvement contract. Not a percentage of your project, and not negotiable upward. See why that number is what it is.

  2. Site set-up

    Mobilization, protection of the areas we are not working in, temporary utilities and the start of demolition.

  3. All-trades rough inspection

    Framing, electrical, plumbing and mechanical rough-in complete and passed inspection. This is the milestone that matters most — everything behind the walls is verified before anything covers it.

  4. Drywall completion

    Insulation inspected, drywall hung, taped and finished.

  5. Project substantially complete

    Finishes in, fixtures set, and the punch list walked together. The final draw is released when the work is done and inspections have cleared — not before.

What this structure is protecting you from

Why payment trails the work
The riskHow the schedule handles it
A contractor collects a large deposit and loses interestThere is no large deposit. $1,000 is the legal cap and it is what we take
You pay for work behind the wall that was never done properlyThe rough draw requires a passed inspection, not our word
Costs appear at the end that you never agreed toScope changes are written and priced before they are built — see change orders and allowances
You run out of leverage before the punch list is finishedThe final draw is held until the work is complete and inspected
Allowance money gets absorbedAllowances are billed at actual cost and whatever is not spent comes off your final invoice

What you get before you sign

  • A line-itemed proposal with allowances shown as allowances, not buried
  • The full payment schedule, written into the contract
  • California-required contract disclosures, included as part of the document
  • Daily visibility once work starts — photos, schedule and selections through BuilderTrend, the same view we have
If a builder won't put the schedule in writing

That is your answer. A payment schedule is not a sensitive negotiating position; it is the most basic thing a construction contract does.

Common questions

How much deposit does Elusive Construction take?
$1,000. That is the maximum a California home improvement contract allows, regardless of whether the project is $30,000 or $350,000.
When do I make each payment?
At defined milestones: site set-up, all-trades rough inspection passed, drywall complete, and substantial completion. Each one is tied to work you can see.
Do I pay anything before work starts?
Only the $1,000 deposit. Everything after that follows completed work.
What happens to allowance money I don't spend?
It comes off your final invoice. Allowances are billed at actual cost, not as a fixed fee.
Is the final payment due before or after inspection?
After. The final draw is released once the work is complete and inspections have cleared.

Where to go next

Written by the team at Elusive Construction, a licensed California general contractor (B #1112902) building in Santa Clara and San Mateo counties. General information about how residential construction works — not legal advice. For your specific contract, talk to an attorney.

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