Payment schedule — protecting cash flow
The 20/30/40/10 split, why it works, and when to deviate.
The default 20/30/40/10 schedule (drawings / manufacture / install / completion) keeps cash ahead of expenses on most jobs. The first deposit covers drawings and a deposit on materials. The manufacturing payment buys the material outright. Install draws should cover labor for the on-site week.
For larger jobs, consider 15/35/40/10 or even 10/30/40/20. For small jobs ($10k or less), a simple 50/50 is usually enough.