Getting Paid in Construction

Cash flow stays steady when your rules are clear, your paperwork is tidy, and you act early when risk shows up. Keep it simple so the team can run it without drama. A few small routines, done every week, beat any heroic end-of-month scramble.

Start with visibility. Know who is actually paying you, put claim dates in the calendar, and keep records neat so approvals do not stall. Most delays come from missing or messy info; clean files make fast payments. If someone asks for proof, you should be able to pull it up in seconds, not hours.

Use credit rules that match reality. Set a sensible limit for each customer and review it when things change (bigger orders, slower payments, or market noise). If risk rises, adjust terms or reduce exposure. No arguments, just settings. Treat these limits like site safety rules: clear, predictable, and the same for everyone.

Trade credit insurance fits in as another safety rail. Think of it as a backstop when payments stop and a live signal about customer risk through limits and alerts you can factor into decisions. It does not need to be the headline, but it is powerful when exposure grows. Pair it with strong habits and you will have both early warnings and a plan B.

Variations are where margin leaks. Treat them like mini contracts: agree first, then build. Claims go in on time. Keep communication calm, short, and written. When payments slip, use the same escalation steps every time. Stay polite, document everything, and move steadily from reminder, to pause, to formal notice as your policy sets out. Consistency beats improvising. The aim is to make every next step obvious so the team does not have to guess.

Visibility & paperwork

• Confirm the paying party
• Calendar claim dates
• Keep signed instructions, delivery records, photos, and current drawings in one place

Add simple naming conventions and a single source of truth so anyone can find what they need without hunting through email chains.

Credit settings

1. Open accounts with a basic application
2. Set a credit limit per customer and review when risk shifts
3. If risk goes up, shorten terms, stage deliveries, or reduce exposure

Keep exceptions rare and time-boxed, and write down why you made them. That way you can unwind the risk later without friction.

Variations & claims

• Do not start until it is agreed in writing
• Submit claims on schedule
• Re-price when scope changes

A quick pre-start checklist for each variation saves back-and-forth and keeps crews focused on authorised work.

Early warnings

• Watch payment speed and ageing
• Pay attention to outside signals, including insurer guidance, and adjust early

If two signals flash at once (slower pay and bigger orders), tighten immediately. It is easier to relax later than to recover a blown account.

Backup plan

• Decide in advance how you will protect cash if payments stop
• Use security where you can, and consider credit insurance when exposure is meaningful

Run a short tabletop drill so everyone knows who does what on day one of a problem.

Keep it light, repeatable, and written down. The aim isn’t more admin; it’s getting paid without firefights. When the rules are clear, cash moves, and the work stays on track.