How Interim Payments Help Contractors Manage Cash Flow
Interim payments provide contractors with regular income, allowing them to cover costs like labour, materials, and overhead as the project progresses. This ensures that the project can move forward without financial strain, while also providing the Client with reassurance that payment is linked to tangible progress.Best Practices for Managing Interim Payments
Contractors should establish clear milestones and payment schedules upfront with the client, tying payments to specific project achievements. Regular invoicing at agreed intervals helps ensure that cash flow remains steady. It’s important to document the progress for each phase to justify the release of funds.Related Terms: Progress Payment, Valuation