Progress payments and cashflow: staying ahead on every build
Profitable builders still fail when cash runs dry mid-project. How to structure payments to stay liquid.
Profit doesn't pay suppliers — cash does
A build can be profitable on paper and still sink the business if cash runs out before the next claim. Materials, deposits and subbies often need paying well before the client's next progress payment lands.
Structure claims to your outlay
Align your progress payment schedule with when you actually spend. If early stages are cost-heavy — slab, frame, materials on order — the schedule should let you claim enough, early enough, to stay ahead. Avoid backloaded schedules that leave you funding the build from your own pocket.
Forecast the gaps
A simple week-by-week cash forecast across the job shows where money gets tight before it happens, so you can time orders, claims and payments. It's the single most useful habit for a building business.
Claim promptly
Every day a claim sits unsent is a day you're financing the client. Invoice on time, every stage.
