Payment schedules for small contracts

Payment schedules for small contracts

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mystomachehurts

Original Poster:

11,669 posts

252 months

Tuesday 5th February 2008
quotequote all
This should probably be in the business forum but I just wanted a few of you contractors to take a quick look.

I've got a small support contract opportunity circa £5K but spread over 12 months.

What kind of payment schedule should I run for it?

Normally I'd do
40% at kick-off
50% at 6 months
10% at completion

But the amounts for the 10% are silly and with the Customer being a large Company, their accounts and payroll don't like dicking about with small invoices.

Having condsidered this, I'm really only left with 40% kick-off & 60% at completion, but getting a few extra £K part way through the contract is always a nice security.

Any thoughts?