Ep 141. Payment Schedules: Planning Your Draws So the Final 10% Doesn't Put You Out of Business
Description
Payment Structures that Make Sense... Master your cash flow by taking control of payment schedules. This episode breaks down essential billing strategies, emphasizing that no one payment structure fits all jobs.
Learn to structure progress payments based on work completed (or materials delivered), not rigid milestones, to prevent cash flow traps. The strategic goal is to ensure only the final 10% is pending upon project completion.
We also cover critical protections, such as including a "winter clause" in contracts, allowing you to bill for work completed to date if weather causes a shutdown. Finally, maintain financial integrity: vendors are not your bank. As the owner, you must set the terms that are right for your company.
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