The deposit is 30%. The deepest hole is in week seven.

Project businesses negotiate payment terms as percentages. The cash risk sits in the timing, and in who controls the event that triggers the invoice.

By Steve 5 min read
Abstract bridge artwork for The deposit is 30%. The deepest hole is in week seven.

A payment schedule is usually agreed in a single conversation, in percentages: thirty on order, forty at the halfway stage, twenty-five on completion, five retained. It reads like a fair division of risk. It tells you almost nothing about how much cash the job will consume, or when. That is because a project has two curves, not one. There is the curve of money coming in, which follows the billing schedule. And there is the curve of money going out, which follows procurement lead times, subcontractor mobilisation, weekly payroll and…

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Important: General information only. Rialto Bridge articles describe patterns and considerations that may apply to a business; they are not financial, legal, tax or accounting advice, and they take no account of your particular circumstances. Consider your own situation and seek advice from a qualified professional before acting.

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