Progress Payments: Keeping a Positive Cash Flow
We used to get three payments on jobs. 1/3, 1/3, 1/3. That’s not a smart business practice.
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Money Changing Hands
It's easy to ask someone to do something; it's harder to hand over money. Your client isn't committed until they've written the first check.
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Payment Schedules for Cash Flow
A good payment schedule keeps you paid for the work you are doing. If you're using a 1/3, 1/3 and 1/3 schedule, you are financing most of the job out of your pocket.
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Use the Right Payment Schedule
If you want positive cash flow in your construction business, make sure you're using the right payment schedule on your contracts.