<p>Renovating your home is a big investment, and <a href="https://www.renonation.sg/articles/id-hiring-mistakes-to-avoid">choosing the right interior designer</a> is really only half the equation. You also need to know where your money goes and what happens if things don't go according to plan. Through <a href="https://www.renonation.sg/get-free-quote">Renonation.sg</a>, homeowners can connect with up to five interior design firms, including CaseTrust-accredited and HDB-licensed firms, to compare their options. We're also working with Handshake to help homeowners explore escrow, which offers an additional layer of protection for renovation payments. So what does CaseTrust accreditation actually cover, where are the gaps, and how can escrow help protect more of your money? We take a closer look.&nbsp;</p><h2><strong>How renovation payments are usually structured</strong></h2><figure class="image"><img style="aspect-ratio:640/427;" src="https://d213h1b7vxzzl3.cloudfront.net/editor/fbc89de2-5adb-41e8-9c54-93f65b8cd1d2-blob" width="640" height="427"></figure><p>Most renovation contracts split the total into stages tied to milestones. A common five-stage plan looks like this:</p><p>1. Deposit (around 20%): paid when the contract is signed</p><p>2. Commencement (around 20%): when work begins on site</p><p>3. Masonry (around 25%): hacking, tiling, plumbing and electrical work</p><p>4. Carpentry (around 25%): built-in cabinets, wardrobes and fittings</p><p>5. Handover (around 10%): the final payment when the home is complete</p><p>The exact percentages vary by firm, but the pattern is the same. Each payment is made before or during the work it pays for, so the homeowner carries the risk if a stage is delayed, done poorly or left unfinished.</p><h2><strong>What CaseTrust accreditation protects</strong></h2><p>CaseTrust is the accreditation scheme run by the Consumers Association of Singapore (CASE). More than 350 interior design firms are currently accredited. Accredited renovation businesses must:</p><ul><li>Buy a deposit performance bond. If the firm closes, winds up or goes into liquidation before your job is done, the bond refunds your deposit.</li><li>Cap the deposit at 20% of the total contract value.&nbsp;</li><li>Collect payments in phases at agreed milestones, not in one lump sum.</li></ul><h2><strong>Is CaseTrust accreditation enough?</strong></h2><p>The deposit bond protects the first 20% of your contract, and only if the firm closes down or work does not start. The remaining 80% is paid out in stages over the project, and the bond does not cover any of it.&nbsp;</p><p>On a S$100,000 renovation, that leaves S$80,000 paid out with no protection once it has left your account.</p><h2><strong>What is escrow?</strong></h2><p>Escrow is an arrangement where a neutral third party holds money until both sides have met the agreed terms. It is common in property and large business deals. Applied to renovation, it means your payments sit in a protected account and are released to the interior designer as the work is completed.</p><h2><strong>How Handshake escrow works</strong></h2><p>Handshake is an escrow platform for renovation payments in Singapore. It works with CASE to offer escrow to CaseTrust accredited firms, and is also available to non-accredited interior designers. Funds are held in a custodian account with DBS, and payments on the platform are MAS regulated.</p><p>The process follows the usual stage payments, with one difference:</p><p>1. The deposit is held in full. None of it is released until work is due to begin.</p><p>2. Each later stage is split in half . Half goes to the interior designer when you pay, so they have working capital for materials and labour. The other half stays in escrow.</p><p>3. You approve each stage. Once the stage is complete, you approve it and the held half is released.</p><p><i><strong>Example: a S$100,000 renovation</strong></i></p><p>With escrow, S$60,000 of a S$100,000 renovation stays protected, compared with S$20,000 under a deposit bond alone.</p><figure class="table"><table><tbody><tr><td>Stage</td><td>Share</td><td>Paid in</td><td>Released to ID</td><td>Held in escrow</td></tr><tr><td>Deposit</td><td>20%</td><td>S$20,000</td><td>S$0 until work begins</td><td>S$20,000</td></tr><tr><td>Commencement</td><td>20%</td><td>S$20,000</td><td>S$10,000</td><td>S$10,000</td></tr><tr><td>Masonry</td><td>25%</td><td>S$25,000</td><td>S$12,500</td><td>S$12,500</td></tr><tr><td>Carpentry&nbsp;</td><td>25%</td><td>S$25,000&nbsp;</td><td>S$12,500&nbsp;</td><td>S$12,500</td></tr><tr><td>Handover</td><td>10%</td><td>S$10,000</td><td>S$5,000</td><td>S$5,000</td></tr><tr><td><strong>Total</strong></td><td><strong>100%</strong></td><td><strong>$S100,000</strong></td><td><strong>S$40,000</strong></td><td><strong>S$60,000</strong></td></tr></tbody></table></figure><h3><strong>Deposit bond vs escrow at a glance</strong></h3><figure class="table"><table><tbody><tr><td><br>&nbsp;</td><td><strong>Deposit performance bond</strong></td><td><strong>Escrow</strong></td></tr><tr><td>What it covers</td><td>Deposit only (up to 20%)</td><td>Deposit plus half of every later stage</td></tr><tr><td>Protected on S$100,000</td><td>S$20,000</td><td>S$60,000</td></tr><tr><td>When it pays out</td><td>Only if the firm closes or is liquidated</td><td>Funds released only as you approve completed stages</td></tr><tr><td>Protection during the project</td><td>None after the deposit</td><td>Held funds stay protected until each stage is done</td></tr><tr><td>Who can offer it</td><td>CaseTrust accredited firms</td><td>Accredited and non-accredited firms on Handshake</td></tr></tbody></table></figure><p>The two work well together. A CaseTrust firm using escrow gives you both the accreditation standards and stage-by-stage protection.</p><h2><strong>Why escrow helps interior designers too</strong></h2><p><strong>Steady cash flow</strong>: half of each stage is released immediately, so projects keep moving.</p><p><strong>Secured final payment</strong>: unpaid handover payments are a common bad debt for firms. With escrow, the money is already set aside.</p><p><strong>Trust with new clients</strong>: offering escrow signals confidence in their own work.</p><h2><strong>Questions homeowners often ask about escrow&nbsp;</strong></h2><h3><strong>Does my interior designer need to be CaseTrust accredited to use escrow?&nbsp;</strong></h3><p>No. Handshake applies the same payment splits for accredited and non-accredited firms, so the protection is the same.</p><h3><strong>Does escrow cost the homeowner anything?&nbsp;</strong></h3><p>No. Handshake is free for homeowners. Interior designers pay a small fee, which also includes project and financial management tools.</p><h3><strong>When should I set up escrow?&nbsp;</strong></h3><p>After the contract is signed and before the deposit is paid. Bring it up with your interior designer early so the payment schedule is agreed with escrow in mind.</p><h3><strong>Where is the money kept?</strong>&nbsp;</h3><p>In a custodian account with DBS. Payments on the platform are MAS regulated.</p><h2><strong>Key takeaways on renovation payments&nbsp;</strong></h2><ul><li>Most renovation money is paid before the work is delivered.</li><li>CaseTrust's deposit bond protects up to 20% of the contract, and only if the firm closes.</li><li>Escrow extends protection across every stage, keeping 60% of the contract protected in a typical plan.</li><li>Ask your interior designer whether they can work with escrow before you pay the deposit.</li></ul><h2><strong>A more informed way to renovate</strong></h2><p>Knowing how to protect your renovation payments is just as crucial as finding the right ID. <a href="https://www.renonation.sg/get-free-quote">Get connected with up to five interior design firms through Renonation.sg</a> and compare their options before making a decision. And with our collaboration with Handshake, you can also explore escrow arrangements to keep more of your renovation funds protected throughout your reno.&nbsp;</p><p><a href="https://handshake.finance/home-owner/">Learn more about Handshake escrow for homeowners</a></p><p>Whether you're planning a BTO renovation or giving your resale flat a complete makeover, take the time to understand your ID's credentials, payment terms and available safeguards before signing on the dotted line. A little preparation now can save you plenty of headaches later.</p>

Renovating Soon? Here's How to Protect Your Renovation Payments with Renonation.sg

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