Set simple payment schedules that keep cash moving and reduce risk. Learn deposits, progress draws, holdbacks, and how to get approvals signed fast.
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On most jobs, cash goes out fast. Cash comes in slow. A solid payment schedule fixes that. Payment schedules set when you bill, how much, and for what. They protect your cash flow and reduce risk. In this guide, you’ll learn simple payment schedules that work. We’ll cover deposits, progress draws, and holdbacks. We’ll show how to get approvals signed. We’ll also explain how to invoice on time and follow up without stress. Use these steps on your next job and stay ahead.
A good payment schedule starts with a deposit, then 2–4 progress draws, and a clear final payment after completion. Put every milestone in writing, get it signed, and invoice within 24 hours of each milestone. Follow up at 7 and 14 days if needed. Keep it simple and consistent.
Cash flow can sink a job faster than bad weather. Materials, subs, and fuel need cash now. Clients often pay later. A clear schedule closes that gap.
If you’re also refining your pricing, this pairs well with understanding project timelines and cost tracking. See related topics like “project timelines” and “invoice templates” for deeper process setup.
A simple schedule beats a complicated one. Here’s a step-by-step setup that most contractors use.
Pick The Structure
Set The Deposit
Define 2–4 Progress Draws
Add Holdback And Final Payment
Write Clear Payment Terms
Sample Setups
| Job Type | Suggested Payment Schedule | Notes |
|---|---|---|
| Small, 1–2 day job | 50% deposit, 50% on completion | Fast and simple |
| Medium reno (2–4 weeks) | 30% deposit, 3 draws of 20%, 10% final | Tie draws to milestones |
| Large reno (6–12+ weeks) | 20% deposit, 4–6 draws, 10% final | Add statutory holdback if required |
If you also need help writing the scope that matches these milestones, check content on “professional proposals” and “pricing strategies” to keep everything aligned.
Verbal agreements fade. Signed approvals stick. Put the schedule inside your proposal so the client sees scope, price, and payment all together.
Tools like Donizo help here. You can capture job details with voice, text, and photos, generate a branded proposal, and send it by email with a client portal. The client can accept with e-signature, so everything is legally binding and time-stamped.
Slow invoicing kills cash flow. Don’t wait days. Don’t wait for “Friday.”
Platforms such as Donizo let you convert accepted proposals to invoices in one click. That reduces admin and errors. It also keeps the paper trail clean.
Follow-Up Rhythm
Set these reminders on repeat. Consistency gets results.
Things shift on site. Your schedule should handle that without drama.
Many contractors use 20–40% to cover materials and scheduling. Pick a number that matches your risk and job size. For small one-day jobs, 50% can be fine. Always confirm what’s reasonable in your market.
Aim for 2–4 draws on most jobs. Fewer draws mean less admin. More draws give tighter cash control on long projects. Tie every draw to a clear milestone, like “drywall hung” or “tile installed.”
In general, many provinces require a 10% statutory holdback under lien laws. The rules and timelines vary by province. Check your provincial legislation or ask a construction lawyer or accountant before you start.
Issue the invoice within 24 hours. It keeps momentum and reduces “I forgot.” Add photos or a short note as proof. Then follow up at 3, 7, and 14 days if needed.
Stay calm. Ask for the reason in writing. Provide photos, inspection reports, or a quick walkthrough. If the milestone is complete, stand by your contract. If there’s a valid issue, agree on a fix and set a new date.
Strong payment schedules protect cash flow, reduce stress, and prevent disputes. Set a deposit, choose 2–4 clear draws, include any holdback, and invoice within 24 hours of each milestone. Get everything signed before work starts. If you want a simple way to create proposals, collect e-signatures, and convert approvals to invoices, try tools like Donizo. Next steps: 1) write your standard schedule, 2) add it to your proposal template, 3) set follow-up reminders at 3, 7, and 14 days. Do this on your next job and stay in control.
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