How should you pay a Bali villa contractor?

Element's design-fee schedule is 40% at appointment, 40% after the agreed 3D stage and 20% after delivery of the agreed drawing package. That schedule does not define how a contractor should be paid. Construction requires its own BOQ, programme, milestones, valuation evidence, retention and handover conditions.

The selected method should match the procurement route and level of design information. Avoid vague percentages such as ‘structure 40%’ unless the contract defines exactly what completion means and how it will be verified.

• Measured BOQ work — quantities completed multiplied by agreed rates
• Defined milestones — objective packages completed to an agreed standard
• Hybrid approach — milestone structure supported by measured BOQ detail
• Cost-based work — verified costs plus an agreed fee, only with strong records and audit rights

A mobilisation payment should release specific start-up obligations, not function as an unsecured advance. State what happens if the prerequisites are incomplete or mobilisation does not occur by the agreed date.

• Signed contract and complete contract-document register
• Verified contracting entity and authorised bank details
• Agreed construction programme and procurement schedule
• Relevant approvals, insurance and site-control evidence
• Named project manager, site manager and responsible specialists
• Approved mobilisation plan and temporary works
• Baseline progress photographs and site handover record

There is no universal safe percentage. The amount should reflect evidenced early costs such as temporary facilities, initial labour, equipment and approved procurement. Avoid paying for major future work before materials, resources and contractual protections exist. The appropriate structure requires project-specific commercial and legal advice.

These are examples, not a universal sequence. Renovation, pool, landscape, loose furniture and specialist systems need their own measurable milestones.

• Site establishment and verified setting-out
• Foundations or agreed structural stage completed and inspected
• Structural frame completed to the defined extent
• Roof and building envelope weather-tight
• First-fix MEP completed and tested before covering
• Waterproofing tested before finishes
• Finishes and fixed joinery by measurable area or package
• Testing, snagging, practical completion and handover

The reviewer needs enough information to reproduce the claimed value. A WhatsApp message stating ‘70% complete’ is not a valuation.

• Tax-compliant invoice and formal payment request
• Updated BOQ valuation showing previous, current and cumulative amounts
• Dated progress photographs linked to areas
• Inspection requests and approvals for concealed work
• Test results for waterproofing, MEP and specialist systems
• Approved material and sample register
• Variation register with signed values and time effects
• Updated programme and forecast to completion

Use the BOQ units and agreed measurement rules. Separate completed work, delivered materials, variations and provisional sums. Record the valuation date and site conditions. Work that is defective, incomplete or unsupported should not be valued as fully complete merely because labour has occurred.

Paying for unfixed materials can expose the owner to title, damage, storage and duplication risks. Project-specific legal and insurance advice should confirm the protections required.

• Item and quantity clearly identified for the project
• Invoice, delivery note and ownership evidence
• Secure storage and protection from damage or theft
• Insurance and risk responsibility confirmed
• No duplicate claim in later work valuation
• Rules for off-site materials agreed before payment

Retention holds an agreed portion of certified value until the relevant completion and defects conditions are met. The contract should define the percentage, cap, release stages, deductions and whether any substitute security is permitted. Do not invent the retention figure after work starts; have the arrangement reviewed for the specific contract.

A variation should identify the instruction, added and omitted work, BOQ or new rates, overhead and profit treatment, supervision impact, time effect and approval. Maintain one register showing proposed, approved, rejected and paid changes. Unapproved extra work should not quietly enter the next invoice.

Cost progress and time progress are related but not identical. A contractor may procure expensive equipment early while physical progress remains limited, or complete labour-intensive work with lower material value. Review the BOQ valuation, procurement evidence and current programme together before releasing money.

Payment should never create pressure to cover work that has not received the required inspection. The contract should define notice periods and responsibility for reopening unverified work.

• Reinforcement and formwork inspected before concrete
• MEP routes tested before walls and ceilings close
• Waterproofing inspected and flood-tested before finishes
• Roof and drainage falls checked before concealment
• Photographs and records linked to the correct drawing revision

State who reviews progress, who measures quantities, who checks technical evidence and who is authorised to recommend or certify payment. Element's Bali supervision and project-management reference starts from 17% of the approved construction value, variable by responsibility, reporting, programme and site conditions. The reviewer does not assume the contractor's responsibility for execution.

Do not make final payment simply because the site is visually close to finished. Link it to the defined completion and handover package.

• Agreed practical-completion standard reached
• Snag list issued with closure dates
• Testing and commissioning completed
• Final variations and omissions reconciled
• As-built drawings and schedules delivered
• Warranties, manuals and supplier contacts delivered
• Applicable approvals and responsible-professional documents delivered
• Final account agreed subject to retention and defects terms

Keep the signed contract, approved bank details, invoices, payment certificates, bank confirmations, BOQ valuations, variation approvals and final account together. Confirm tax treatment and required documents with qualified Indonesian tax and legal advisers. Never redirect payment based only on an unverified email or message.

• Large advance with no priced mobilisation plan
• Bank account does not match the verified contracting party
• Invoice total cannot be traced to the BOQ
• Repeated claims for materials with no delivery or ownership evidence
• Payment requested before concealed-work inspection
• Variations appear only when the invoice arrives
• Payments materially ahead of physical and procured value
• No retention, defect process or final handover condition
• Pressure to pay urgently outside the contract process

Hitomi Villa is a half-built renovation with real drawings, renders and construction progress documented separately. Its project-specific construction reference is IDR 7,000,000/m² for the agreed renovation scope through final finishes, and supervision/project management is referenced at 17% of the approved construction value. These figures do not create a universal payment schedule; the actual milestones must follow each project's BOQ, programme and risks.

• Confirm the payee and bank details through an independent channel
• Check the claimed work against the BOQ and site
• Review inspections, tests and defect status
• Confirm material evidence and prevent duplicate claims
• Update variations and forecast final cost
• Record the decision and payment reference
• Preserve agreed retention and handover leverage