Clear steps to set deposits and progress payments, write them into proposals, invoice on time, and handle delays without fights. Keep cash moving and stress low.
Ditch the paperwork and reclaim your time with Donizo.
Contractors across Europe trust Donizo to handle their quotes and invoices while they focus on what they do best: their craft.
Getting paid on time keeps your crew moving and your supplier tabs clear. Deposits and progress payments protect your cash flow. They also make clients feel safe when they know the plan. In this guide, you’ll learn a simple way to set deposits and progress payments, write them into your proposal, and collect without drama. We’ll walk through example schedules, clear wording, and what to do when a job stalls. You’ll see how to handle holdbacks, extras, and delays in plain, friendly language.
Use a simple 4-part schedule: booking deposit, before start, mid-point, and substantial completion. Put the schedule in your proposal, get it signed, then invoice the same day milestones hit. Send polite reminders at 3, 7, and 14 days. Keep everything clear, written, and consistent.
Cash flow is oxygen for small contractors. Materials, fuel, and payroll come fast. Client payments often don’t.
A steady payment rhythm reduces stress. It also cuts back-and-forth by half because everyone knows the next step.
Keep it simple. 3–5 payments work best. Tie each payment to a clear milestone the client can see.
You can also do 4 payments:
These are examples, not rules. Adjust for job size, scope, and risk. For small jobs under 2 days, many contractors take 50% upfront and 50% at completion. For large projects, add more milestones. The key is clarity.
Pick 3–6 milestones. Name them in plain language. If you’re also improving your pricing approach, this pairs well with understanding project timelines and estimating accuracy.
If it’s not written, it’s a debate. Put the full schedule on page 1 of your proposal. Use simple words.
Include late payment terms. Keep them fair and readable. Example: “Overdue balances may incur a service charge after 30 days.”
Get the client to sign the proposal. E-signatures avoid printer delays and lost PDFs. Tools like Donizo help you generate branded proposals, capture e-signatures, and convert accepted proposals into invoices in one click. If you want to dive deeper, check out resources on professional proposals and invoice templates that save time.
Many contractors do the work, then delay invoicing. That kills cash flow. Invoice fast.
Keep messages short and polite. “Hi [Client], rough-in is complete. Invoice attached. Thanks for the quick payment so we can keep your project moving.”
Every invoice should repeat the full payment schedule. It reminds the client where you are and what’s next. Consistency builds trust.
Stuff happens. Materials slip. Clients change their minds. Protect the plan with clear steps.
If you want deeper guidance, see advice on change orders and managing project timelines.
In many provinces, a statutory holdback applies on construction work, often around 10%. This is meant to protect parties under lien laws. Check your province’s rules. Reflect the holdback in your schedule like this:
Use clear dates for lien release when possible. Keep proof of substantial completion, like signed walk-through notes and photos.
Clients pay faster when they feel informed and respected.
Stay calm. Stay consistent. Most pushback fades when clients see steady progress and clear paperwork.
Use a deposit that covers real upfront costs and secures the schedule. Many contractors choose 10–30% depending on materials and lead times. For small 1–2 day jobs, 50% is common. The goal is to cover risk and keep it fair.
Explain it simply: the deposit books your date and orders materials. Offer a smaller booking deposit plus a larger pre-start payment due 3–5 days before mobilization. If they still refuse, consider walking away. No deposit often means slow final payment.
Keep it to 2 steps for speed: 50% upfront, 50% at completion. For 1-day service calls, invoice on-site when the work is done. Simplicity helps both sides.
Offer e-transfer, credit card, and cheque. E-transfer is fast and low-cost. Credit cards are convenient for clients but add fees. Cheques can delay cash by 2–5 days. List accepted methods on every invoice.
In many provinces, a statutory holdback applies, often around 10%. Owners or generals retain it on progress invoices and release it after the lien period. Put the holdback in your proposal and show it on every invoice. Ask your accountant or lawyer about local rules.
Clear schedules, signed proposals, and same-day invoicing make payments smooth. Tie progress payments to visible milestones. Communicate weekly, and handle changes in writing. To simplify the admin, platforms such as Donizo let you send branded proposals, capture e-signatures, and convert accepted proposals into invoices fast.
Next steps:
Do this on your next project. You’ll feel the cash flow difference right away.
Discover more insights and tips for your construction business
