Percentages are common examples, not rules. This is general information, not legal or tax advice.
Seven things to settle about payment
- Tie payments to deliverables, not dates"30% at month one" turns into an argument when work slips. "First-screen mockup approved," "core feature demoed," "acceptance passed" are things you can see, so they are clear triggers.
- A common three-step example (an example, not a rule)For small jobs (a few weeks), deposit plus final is enough. For jobs longer than about three months, two milestone payments are safer.
Step When Example share What you check Deposit At signing around 30% Both sides agree on the requirements doc and schedule Milestone When the core feature runs 30-40% A live demo of the core feature on a test URL Final When acceptance is done 30-40% Acceptance checklist passed, source handed over - Do not make the deposit too largeA deposit above half of the total raises your risk. With a new vendor, start near 30%. Also, a deposit that is too small can push your job down the developer's queue, so talk it through.
- Check whether the quote is "VAT excluded"In Korea, VAT is 10%. A quote that excludes VAT can end up 10% higher than you expected. Ask for the supply price and VAT shown separately, per payment step. Whether a tax invoice applies can depend on the business type, so confirm with a tax professional.
- One tax invoice per payment keeps the books cleanWrite into the contract that each payment comes with an invoice for that amount. Agree on the timing before you sign. This is general information, not tax advice.
- Write the rules for delays and scope changes- What happens if the developer is late- What happens if the client sends materials late- How the price changes when features are added or removedScope changes mid-project: How to write a change request →
- Link the acceptance window to the final payment"Acceptance within 7 days of delivery, final payment if no issue is found." Use the acceptance checklist, and write down what happens if there is no reply within the window.Acceptance Checklist: 10 Things to Verify Before the Final Payment →
One-page checklist
- ☐ Payments are tied to deliverables
- ☐ Number of steps matches the length of the job
- ☐ Deposit is not above half
- ☐ VAT included or excluded is written down
- ☐ Tax invoice timing is agreed
- ☐ Delay and scope-change price rules exist
- ☐ Acceptance days and the final payment date are linked
Percentages are common examples, not rules. This is general information, not legal or tax advice.
If you want to see the work first
At HS Solution we show one core screen as a demo within 48 hours before you sign, so you can see the work before you decide how to split payment.
Related guides
8 Clauses to Check Before Signing a Software Development Contract: Source Code, IP, Maintenance →
Acceptance Checklist: 10 Things to Verify Before the Final Payment →
Scope changes mid-project: How to write a change request →
How to compare software development quotes: 7 things to check before the price →