Put the terms in writing
Collections are easier when the payment schedule is part of the quotation. State the advance, the milestone payments and the final payment, and tie each to an event such as material dispatch or commissioning.
Record every receipt against the job
A receipt that sits in a bank statement cannot tell you which job it belongs to. Record the amount, date, mode and job at the time, with a reference or proof.
See pending balance per job
Pending balance is the quotation value minus receipts. When it is visible on the job, nobody needs to ask accounts how much is left.
Review weekly
Pick a fixed weekly slot. Walk through the jobs with pending balance in order of age, and for each one agree who will act and by when.
- Job and customer
- Amount pending and since when
- Reason it is pending
- Owner of the follow-up and next date
Link stage and payment
Delivery stages and payments should talk to each other. If a milestone payment is due before the next stage starts, the project team should see that, so the customer hears one consistent message.
Escalate on a schedule
Decide in advance when a pending amount moves from the project manager to a senior person, and then to the owner. A clear schedule removes the awkwardness of deciding each time.
Keep expenses visible too
Pending collections tell half the story. Record site expenses against the same job, so you can see what each job has earned and cost.
Keep this
- Payment terms live in the quotation.
- Receipts and expenses attach to jobs.
- Weekly review, one owner per overdue amount, scheduled escalation.