Payment Schedules
Payment schedules define when and how much customers pay throughout a project. Each contract includes a payment schedule that determines invoice amounts and timing.
How Payment Schedules Work
- Select a template - Start with a predefined payment schedule template
- Customize if needed - Adjust for this specific contract
- Include in contract - Schedule appears in the contract document
- Customer signs - Payment schedule is locked
- Invoices generated - System creates invoices based on the schedule
Payment Schedule Options
When configuring a contract's payment schedule, you have three approaches:
Option 1: Use a Template
Select from predefined payment schedule templates configured by your administrator.
- Open the contract's Payment Schedule section
- Click Select Template
- Choose from available templates
- Template payments populate automatically
Templates are configured in Settings > Projects > Payment Schedule Templates.
Option 2: Customize a Template
Start with a template, then adjust for this specific contract.
- Select a template as your starting point
- Modify individual payment entries:
- Change amounts or percentages
- Adjust milestone descriptions
- Add or remove payment lines
- Save your customized schedule
The original template remains unchanged; your modifications apply only to this contract.
Option 3: Create a Custom Schedule
Build a payment schedule from scratch for unique situations.
- Click Create Custom Schedule
- Add payment entries one by one
- Configure each payment's details
- Ensure total equals 100% (or contract amount)
Payment Entry Types
Percentage-Based Payments
Define payments as a percentage of the total contract amount.
| Entry | Percentage | On $100,000 Contract |
|---|---|---|
| Deposit | 10% | $10,000 |
| Start | 30% | $30,000 |
| Rough-In | 30% | $30,000 |
| Completion | 30% | $30,000 |
Advantages:
- Automatically adjusts if contract amount changes
- Easy to apply to any project size
- Common industry standard
Fixed Amount Payments
Define payments as specific dollar amounts regardless of contract total.
| Entry | Amount |
|---|---|
| Deposit | $5,000 |
| Materials | $25,000 |
| Progress 1 | $20,000 |
| Remaining | Balance |
Advantages:
- Predictable cash flow
- Useful when specific costs are known
- Good for material-heavy projects
Mixed Approach
Combine percentage and fixed amounts in one schedule:
| Entry | Type | Value |
|---|---|---|
| Deposit | Fixed | $5,000 |
| Start | Percentage | 25% |
| Rough-In | Percentage | 35% |
| Completion | Percentage | Balance |
Milestone vs. Date-Based Payments
Milestone-Based
Payments are due when specific project milestones are reached:
- Deposit - Due at contract signing
- Foundation Complete - Due when foundation is finished
- Framing Complete - Due when framing is finished
- Final Walkthrough - Due at project completion
Milestone payments require you to trigger invoices when milestones are reached.
Date-Based
Payments are due on specific calendar dates:
- Deposit - Due at signing
- 30 Days - Due 30 days after contract start
- 60 Days - Due 60 days after contract start
- Final - Due at completion
Date-based payments can automatically schedule invoice reminders.
Hybrid Approach
Combine milestones and dates:
| Entry | Trigger |
|---|---|
| Deposit | Signing |
| Progress 1 | 30 days OR framing complete (whichever first) |
| Progress 2 | 60 days OR drywall complete |
| Final | Completion |
Creating a Payment Schedule
Step-by-Step
- Open the contract and navigate to the Payment Schedule section
- Choose your approach:
- Select a template, OR
- Create custom schedule
- Add payment entries:
For each payment line, configure:
| Field | Description |
|---|---|
| Description | What this payment is for (e.g., "Deposit", "Foundation Complete") |
| Amount Type | Percentage or Fixed Amount |
| Amount | The percentage or dollar value |
| Due Trigger | When payment is due (signing, milestone, date) |
| Notes | Optional details about this payment |
- Verify totals - Ensure all payments equal 100% or the full contract amount
- Save the payment schedule
Adding Payment Lines
Click Add Payment to insert a new line. Configure:
- Description - Clear name for the payment
- Amount - Enter percentage (e.g., "25") or fixed amount (e.g., "$5,000")
- Type - Select Percentage or Fixed
- Trigger - When this payment is due
Removing Payment Lines
Click the delete icon next to any payment line to remove it. The system will warn you if removal causes totals to not equal 100%.
Reordering Payments
Drag and drop payment lines to reorder them. Order affects how they display in the contract and invoice sequence.
Common Payment Structures
50/50 Split
Simple two-payment structure for smaller projects:
| Payment | Amount | Due |
|---|---|---|
| Deposit | 50% | At signing |
| Final | 50% | At completion |
Best for: Projects under $25,000, quick turnaround work
Standard Four-Payment
Balanced structure for typical residential projects:
| Payment | Amount | Due |
|---|---|---|
| Deposit | 10% | At signing |
| Start | 40% | Work begins |
| Rough-In | 40% | Rough-in inspection |
| Final | 10% | Completion |
Best for: Residential remodels, 4-8 week projects
Monthly Progress Billing
Regular intervals for longer projects:
| Payment | Amount | Due |
|---|---|---|
| Deposit | 20% | At signing |
| Month 1 | 20% | 30 days |
| Month 2 | 20% | 60 days |
| Month 3 | 20% | 90 days |
| Final | 20% | Completion |
Best for: Projects 3+ months, commercial work
Construction Milestone
Tied to specific construction phases:
| Payment | Amount | Due |
|---|---|---|
| Deposit | 15% | At signing |
| Foundation | 20% | Foundation complete |
| Framing | 25% | Framing complete |
| Drywall | 25% | Drywall complete |
| Final | 15% | Final inspection |
Best for: New construction, large additions
Front-Loaded (Material Heavy)
Larger upfront payments for material-intensive projects:
| Payment | Amount | Due |
|---|---|---|
| Deposit | 25% | At signing |
| Materials Ordered | 35% | Before material delivery |
| Installation Start | 25% | Installation begins |
| Final | 15% | Completion |
Best for: Cabinet projects, custom millwork, expensive materials
Editing Payment Schedules
Before Sending Contract
You can freely edit the payment schedule before the contract is sent:
- Add, remove, or modify payment lines
- Change amounts and descriptions
- Switch between templates
After Sending (Before Signing)
If the contract has been sent but not signed:
- Recall the contract if needed
- Make payment schedule changes
- Resend to customer
After Signing
Once a contract is signed, the payment schedule is locked. To change payments:
- Create a change order for scope/price changes
- Adjust individual invoices if needed (with proper documentation)
- Contact support for exceptional circumstances
Payment Schedule in the Contract
How It Displays
The payment schedule appears in the contract document showing:
- Payment descriptions
- Amounts (percentage and/or dollar values)
- Due triggers or dates
- Total contract amount
Customer View
Customers see a clear breakdown of:
- When each payment is due
- How much each payment is
- What triggers each payment
- Total they're committing to
Automatic Invoice Creation
When a contract is signed:
- Invoices are generated for each payment schedule entry
- First invoice (deposit) is marked due immediately
- Subsequent invoices are created with appropriate due dates or held for milestone triggering
- Payment tracking begins automatically
Triggering Milestone Payments
For milestone-based payments:
- Navigate to the project's billing section
- Find the pending milestone invoice
- Click Trigger Invoice when milestone is complete
- Invoice is activated and sent to customer
Tips for Effective Payment Schedules
Balance Cash Flow
- Collect enough upfront to cover material costs
- Don't leave too much for the final payment
- Consider your typical project cash flow needs
Be Clear with Milestones
- Use specific, measurable milestones
- Avoid vague descriptions like "halfway done"
- Match milestones to inspection points when possible
Consider Project Risk
- Higher-risk projects may warrant larger deposits
- Custom or special-order materials need upfront funding
- Balance customer comfort with business protection
Match to Project Duration
- Short projects (< 1 month): 2-3 payments
- Medium projects (1-3 months): 3-4 payments
- Long projects (3+ months): Monthly or milestone-based
Related Topics
- Contract Configuration - Other contract settings
- Client Invoicing - Working with generated invoices
- Post-Signature - What happens after signing