Big jobs don't get done all at once — so why should you wait until the end to get paid?
Whether you're remodeling a kitchen, building an addition, or handling storm repairs, your work happens in phases. Material costs and labor add up quickly — and holding off on payment until final delivery puts pressure on your cash flow.
💰 Cash Flow Reality: The average construction project spans 3-6 months. Waiting until completion for payment can create serious cash flow challenges for contractors.
The Case for Milestone-Based Payments
Many pros are turning to milestone-based payments — or "split payments" — where clients are invoiced at defined stages:
- Demo complete: 🔨 Send the first payment request
- Framing finished: 🧱 Trigger the next one
- Electrical/Plumbing rough-in: 🔌 Bill the next milestone
- Final walkthrough: 🎨 Bill the remainder
This not only helps your business stay liquid — it builds trust with the client by tying payment to visible progress.
Benefits for Both Sides
For Contractors:
- Improved cash flow throughout the project
- Reduced financial risk if client relationships sour
- Better material purchasing power with steady income
- Less stress about large outstanding balances
For Clients:
- Payment tied to progress provides accountability
- Smaller payment amounts are easier to manage
- Clear milestone tracking shows project progress
- Built-in quality checkpoints before payments
📋 Sample Milestone Structure:
- 25% - Contract signing & permits
- 25% - Demolition & rough work complete
- 25% - Installation & mechanical complete
- 25% - Final completion & walkthrough
How Scope‑Kit Makes It Easy
With Scope‑Kit Invoices, you can split an invoice into multiple payment milestones from the start. Each one gets its own secure payment link — ACH or card — and you can optionally pass on the card fee to the client.
Want to keep things simple? Just create one total invoice and collect it at once. But if you're ready to make billing match your workflow — split payments are the way to go.
Try Scope‑Kit Free