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Progress billing: how to get paid without chasing the client

Deposit, progress draws and final payment, with an example schedule

The safest way to get paid on a job is to split the money into milestones tied to work the client can actually see: a deposit up front (often around 30%), one or two progress draws during the job (roughly 50% between them) and a final payment on completion (around 20%). That way you are not financing the job out of your own pocket, and you are not arguing about money at the end, because every payment lands when there is finished work to point at.

Deposit or progress draws: which one to use

It is not one or the other. The deposit lets you buy materials and hold the slot on your calendar before you lift a tool. The progress draws keep your cash flow healthy through the job and let the client pay against results. Billing everything at the end is the mistake that leaves you chasing a client when you have no leverage left.

Example: splitting a job into payment milestones

Milestone	% of total	When it is billed	What it covers
Deposit (at signing)	30%	Before work starts	Material purchase and holding the schedule slot
Draw: structure and rough-in	40%	Structure complete	Slab, framing or rough-in the client can inspect
Draw: finishes underway	10%	Finishes in progress	Tile, fixtures, first coat of paint
Final payment	20%	Punch list signed off	Final details and clean, against acceptance

Reference split for small and mid-size residential work (30% deposit, 50% in draws, 20% at completion). Move the percentages with how material-heavy the job is, how long each stage runs and how well you know the client.

What to put in writing before you start

Total price and breakdown

The final number split into materials, labor and margin. A client who knows what he is buying argues less at the end.

Milestones and percentages

Every payment tied to concrete, inspectable work: slab poured, drywall hung. No loose calendar dates with no work attached to them.

Work stops if payment stops

Write down that the next stage does not start until the previous payment clears. That one line prevents most of the delays.

What is excluded

List what is not in the price (owner-supplied materials, permits, extra work) so a change order gets priced separately instead of argued about.

Written acceptance

The client accepts the quote in writing, or by link, before anyone starts. That acceptance is what backs you up if the story changes later.

Getting the quote accepted by link

A quote accepted in writing is worth a hundred handshake deals. Sending it as a link the client reviews and accepts leaves a record of the date, the amount and the milestones you agreed on. If the client questions a draw three weeks later, the record is right there. That is the difference between billing calmly and chasing a check.

Invoicing, retainage and lien rights

The paperwork rules change by state, so confirm yours before you sign. Broadly:

Deposit limits

Some states cap what a contractor can ask up front on residential work. Check the limit in your state before you set the deposit percentage.

Retainage

Many owners hold back a percentage of every draw until final completion. If it applies, the amount and the release conditions belong in the contract, not in a conversation.

Lien rights and notices

Preliminary notice and lien deadlines vary by state and they are strict. Know yours before the first draw, not after a payment goes late.

How ObraMaestra handles milestone billing

With ObraMaestra you split the estimate into payment milestones (deposit, draws and final payment) and send it to the client to accept by link. The agreement is in writing from day one, with the amounts and the work tied to each payment, so you know exactly what to bill at every stage and you have the acceptance on record. Fewer arguments, better cash flow, no chasing.

Bill by milestone and get acceptance in one link

ObraMaestra splits the quote into milestones and sends it for the client to accept by link, so the agreement is in writing before you start.

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Frequently asked questions

Should I charge up front or bill by progress?

Both. A deposit up front covers materials and holds your calendar slot, and progress draws tied to inspectable milestones keep the cash flowing. Billing everything at the end leaves you financing the job and negotiating from zero leverage. Asking for everything up front scares off serious clients. The milestone split protects both sides.

How much of a deposit should I ask for?

On residential work a deposit in the 20% to 40% range is common, with 30% the usual landing spot, and it should at least cover the materials for the first stage so you are not funding the job yourself. Note that some states cap deposits on home improvement contracts, so check your state before you set the number.

How do I get paid on time without chasing the client?

Tie every payment to a concrete, inspectable milestone ("slab poured", "drywall hung") and put it in the accepted quote. Then hold the line: the next stage does not start until the previous payment clears. That keeps cash flow on your side and keeps the client current without you making phone calls.

What if the client does not pay a draw?

If the milestones are in writing and the acceptance is on record, you have ground to stand on: work stops until the payment is settled. That is exactly why the client should accept the quote in writing, or by link, before the first day. Never build further than you have been paid for.

How do I split a job into payment milestones?

Split it by construction stages the client can see and verify. A typical schedule is 30% deposit, 50% across one or two progress draws (say 40% at structure and rough-in, the rest as finishes go in) and 20% on final acceptance. Shift the percentages depending on how material-heavy the job is and how long each stage runs.