Getting Paid
by Shawn McCadden 

Why is it that some contractors never seem to have collection problems? What are they doing to keep the money coming in when they need it?

Being proactive may be your best approach. Managing the expectations of your clients and actually following through on your promises goes a long way in establishing trust and respect with your clients. During the sales process, let prospects know your company's policies when it comes to payment schedules and collecting money. Be sure they understand that successful and timely completion of their project depends upon prompt payment.

What you say and how you say it. The payment schedule terms in your contract should be as specific as needed to get paid on time and provide you with options if you don't pay.

For example:"$25,000.00 payment due when ready for insulation and plaster." This example indicates that payment is required before you move to the next phase of the project. Let the client know that if payments are not received on time, you will leave and will return only after you complete your next project.

If a prospect is hesitant to accept your payment terms, you might want to consider finding a new prospect!

Shawn McCadden, a Certified Remodeler, is a nationally-known columnist, speaker, consultant and award-winning remodeler. Shawn works with aspiring remodelers helping them discover, identify and achieve their professional and personal goals.