Project Duration Labor Productivity Scaffolding Curing Timeline Lead & Lift Water Usage Safety PPE Daily Report Waste Estimator Cost & Material Payment Planner

Quality Inspector

Planning & Costing

Smart Construction Payment Planner – Stage-wise & Monthly Schedule Nepal

Expert Guide

Generate a customized payment schedule for your house construction with risk analysis and PDF export.

📋 Project Details

Built-up Area (sq.ft per floor)

Number of Floors

Construction Type

Cost Input Mode

Cost per Sq.Ft (NRs)

Total Built-up: 3,000 sq.ft

Base Cost: NRs 6,600,000

Project Duration (months)

Start Date

Contingency: 10%+NRs 660,000

Total Project Cost (with contingency)NRs 7,260,000

💳 Payment Mode

Advance Payment: 10%NRs 726,000

Retention Held: 5%NRs 363,000

⚡ Quick Answer

In Nepal, residential construction payments are typically structured as 10–15% advance, monthly or milestone-based installments, and 5–10% retention held until project handover. Use the Milestone mode for best protection against overruns.

🛠️ How It Works

This tool supports three payment modes: Monthly (even distribution with advance & retention), Milestone (tied to construction stages like foundation, slab, finishing), and Running Bill (payment based on verified work completion). All modes factor in contingency and retention.

Enter your project details: built-up area, floors, cost per sq.ft, duration, and start date.
Select a payment mode — Monthly, Milestone-based, or Running Bill.
Configure mode-specific options like advance %, retention %, or milestone percentages.
Click Calculate to generate a detailed payment schedule with dates and amounts.
Use the Compare tab to view all three modes side-by-side with risk analysis.
Export the schedule as a PDF for contractor agreements.

📐 Calculation Formula

Monthly = (Total − Advance − Retention) / Duration

Milestone = Total × Stage %

Running Bill = (Total × Completed%) − Retention − Previous Payments

📋 Real-Life Example

For a 3000 sq.ft house at NRs 2,200/sq.ft (NRs 66 Lakh + 10% contingency = NRs 72.6 Lakh):
• Monthly mode (12 months, 10% advance, 5% retention): NRs 7.26L advance + NRs 5.15L/month
• Milestone mode: Foundation 15% = NRs 10.89L, Slab 20% = NRs 14.52L, etc.
• Running bill: 35% complete = NRs 25.41L gross − 5% retention = NRs 24.14L payable

⚠️ Common Mistakes to Avoid

Paying more than 70% of the total cost before the slab stage is completed — this leaves no leverage for finishing quality.
Not holding retention (5–10%) until the defect liability period (usually 6–12 months after handover) in Nepal.
Agreeing to a lump-sum advance without a formal agreement — always get a written contract specifying payment schedule and milestone gates.
Ignoring contingency — material prices in Nepal can fluctuate 10–20% during monsoon and festival seasons.

❓ Frequently Asked Questions

What is the safest payment method for house construction in Nepal?

Milestone-based payment tied to physical progress is safest for homeowners. Pay only after each stage (foundation, slab, brickwork, etc.) is completed and verified by an engineer. Hold 5–10% retention until full handover.

How much advance should I pay the contractor?

In Nepal, 10–15% advance is standard practice. Never pay more than 15% upfront. Ensure the advance is documented in a written agreement with clear terms for refund if work does not start.

What is a running bill in construction?

A running bill is a periodic payment based on the actual percentage of work completed on site. An appointed engineer measures the work, certifies the bill, and then the owner releases payment minus any retention amount.

What is retention money in construction?

Retention is 5–10% of each payment that the owner holds back. It is released only after the project is fully completed, inspected, and any defects are rectified during the defect liability period (typically 6–12 months).