Subcontractors should demand upfront fees and regular progress payments instead of waiting for a large final payment. This prevents cash flow problems and stops you from financing the client's project. A modest final payment is all that's left.
Chapters
You know, if your biggest payment is at the very end, you've probably already lost control of the job. For subcontractors, you really want to get paid a good bit upfront. Like you want to get a down payment of some kind or payment upfront for something that you do to get a big chunk of money. That's going to help your cash flow for the project, you know, and stop you essentially financing the project for them over the course of the project. You get paid upfront, they pay you all the way through, and then they pay you at the end. If your biggest payment is at the end, with so many construction companies, you know, they got this big payment at the end that they're waiting for, that everything is relying on, and guess what? They don't pay it to you and they argue about it at the end and it's much less than you think. So that's what we're trying to avoid. Ideally, you want to get payment upfront and then small checks along the way or reasonable size checks along the way. And then the end one can be a little bit bigger, but we really want to get that upfront payment.