Payment schedules for small contracts
Discussion
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?
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?
You say it's a support type of contract.
If so, it would be normal to expect to pay for support contracts in advance.
I'd look at something like :
6 monthly in advance E.g. 50% on 1st March, 50% on 1st September.
or
Quarterly in advance E.g 25% on 1st March, 1st June, 1st September, 1st December
Simon
If so, it would be normal to expect to pay for support contracts in advance.
I'd look at something like :
6 monthly in advance E.g. 50% on 1st March, 50% on 1st September.
or
Quarterly in advance E.g 25% on 1st March, 1st June, 1st September, 1st December
Simon
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