What is a milestone payment?
A milestone payment is a pre-agreed payment made when a specific stage of work is completed. Instead of one big invoice at the end of a job, the total is split into stages: complete the stage, get paid, move to the next stage.
Example: Kitchen renovation
A $20,000 kitchen renovation might be structured as:
- Milestone 1 — Demolition and prep: $4,000 (paid when old kitchen is removed and walls are prepped)
- Milestone 2 — Plumbing and electrical rough-in: $5,000 (paid when pipes and cables are run)
- Milestone 3 — Cabinet installation: $6,000 (paid when cabinets are installed)
- Milestone 4 — Final fit-off and handover: $5,000 (paid on completion)
Why milestone payments are better for everyone
For tradies: You get paid as you go. Cash flow is predictable. You're never out of pocket for a full job's worth of materials and labour.
For homeowners: You only pay for work that's been completed. If something goes wrong partway through, your exposure is limited to the current milestone — not the whole job.
Stagex makes milestone payments automatic
Stagex adds escrow to milestone payments. The client funds each milestone before it starts. The tradie completes the work and submits photo evidence. The client approves. Payment is released instantly. No chasing, no disputes, no stress.