Get Paid Faster: Construction Payment Schedule Tips That Keep Cash Flowing

Cash flow can make or break a construction business. And if you’re waiting until the end of a project to collect a final payment—or worse, chasing down overdue invoices—you’re putting your profitability at risk.

One of the smartest ways to protect your cash flow is to implement a clear, milestone-based payment schedule on every job. Whether you’re building custom homes, remodeling kitchens, or installing pools, setting expectations early and billing consistently ensures you get paid on time—and stay in control of your finances.

Let’s break down how payment schedules can help you improve your business operations and how JobTread makes it easy to put them into action.

Why Payment Schedules Matter

Getting paid in predictable, incremental phases helps you:

• Maintain positive cash flow throughout the job
• Cover labor and material costs as you go
• Reduce risk of non-payment or disputes
• Build trust with customers by setting clear expectations

When payment terms are vague or left until the end of a job, you’re essentially financing your client’s project. And in construction, that’s a risky move.

How to Structure a Payment Schedule

Most contractors use milestone-based billing, where payments are tied to specific phases of the project. Here’s an example structure:

• Deposit (e.g., 10%) upon contract signing
• Draw 1 (e.g., 25%) after permitting and initial materials purchase
• Draw 2 (e.g., 25%) after framing or rough-in
• Draw 3 (e.g., 25%) after finishes or inspections
• Final Payment (e.g., 15%) upon project completion and walkthrough

When payment terms are vague or left until the end of a job, you’re essentially financing your client’s project. And in construction, that’s a risky move.

Pro Tips for Better Billing

1. Include your payment schedule in the contract. This keeps everything transparent from the start.
2. Automate reminders. Don’t rely on memory or paper. Use software to notify customers when payments are due.
3. Don’t move forward without payment. Stick to your schedule and pause work if an invoice goes unpaid.
4. Make it easy to pay. Offer online payment options to speed up the process.
5. Communicate clearly. Set expectations during the sales process and reinforce them throughout the project.

Ready to Get Paid Faster?

If you’ve been struggling with cash flow or chasing down payments, implementing structured payment schedules is a simple yet powerful solution. And with JobTread, you can leverage the Payments Dashboard to keep track of all your customer payments in one place!

Take Next Steps to Building a Better Business

If you are looking for a software solution that will make your life easier, JobTread is the one for you!

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