Payment schedules are timelines in which the company will fill all the data and guarantee that the contractors are paid on time. Some contractors choose to break the payment into specific intervals.

This tool is meant not just for the contractor, but also for the client to keep track of the payment schedules and ensure that the progress payments will be made due date.

When creating contractor payment schedules, you guarantee that there won’t be any problems with the down payment process or the partial payments, for example. This way, you can be sure that your payments will be made in a timely fashion, and this won’t have future problems as the project progresses.

Especially when dealing with a large construction project, this tool comes in very handy. It will help you control the cash flow and the slow or partial payments, guaranteeing the project's integrity until the end of the job.

There are lots of payment schedule types, but some items should be included, no matter the main focus of the construction project or the construction costs. Here are some of the most important ones when making the construction payment schedules:

When building the payment schedule, it is important to take note of the work to be performed and the materials involved in the project. A good description of those items should be included in the payment schedule.

This helps the general contractor understand the project’s length and draw schedule templates that fit the expectations of both the contractor and the client. It will also ensure that the business pays subcontractors for their work.

Another important thing to be registered in the payment schedule is the due dates and the contractor's final payment. Considered one of the most important parts of your document, this section will contain details like the final payment, the schedule of values, and the contract price.

This has a direct impact on the construction process and the payment process. When creating a concrete payment schedule, the property owner must have clear and objective data on the document to avoid any problems like financial disputes.

Another piece of information to include in the construction payment schedules is the name or a vendor description. Keeping a register of the name of to whom the payment is being made must be the first thing in your construction payment schedule template.

Besides the first name and last name, it is recommended that you feature extra information on the construction contract, like the account number. This helps not only with financial disputes but also separate projects and avoids progress payment troubles.

Another thing that will help your construction payment schedule to look even better is to include a column for every amount paid. It’s beneficial to include the percentages of the construction projects regarding the total cost, especially when dealing with the progress payments of your draw schedule.

Since this represents the amount of money for each activity, it is crucial to also include deductions and other things that may interfere with the final payment amounts when going to pay subcontractors.

Having bigger construction projects also means having more subcontractors and different payment methods. To make it as clear as possible for both parties and guarantee that everybody is on the same page, this kind of information must be explicit in the payment schedule.

There are lots of payment methods to choose from. This gives the contractor and the house owner more opportunities to find something that works best for both.

There are lots of construction schedule types, each one with its particularities. Knowing their differences is a very important part of building one.

Doing this lets you discover which of these types fits your project best. The more it helps your project, the more optimized it is, and the better for you and your clients.

This type of payment is commonly used on larger-size projects, having big draw schedules and needing more time to be completed. It consists of smaller payments that happen at specific times of the project.

Having a good project planner for this kind of project is the most crucial element since you have to think about the payment dates. Defining the right goals is very important for this kind of contract in order to be paid in a good timely manner for the subcontractor.

Here the payments are based on the progress of the construction process, respecting a constant interval. It can be at every 20% of completion or any other interval you prefer.

This kind of payment method normally works well with itemized budgets. If this is not the case, you may want to choose different methods for the project.

With payment based on specific stages of the project, the milestone-based payment assumes getting paid when particular goals are achieved. The house owner and the contractor will decide what those goals are and the worker will receive his payments whenever he finishes those activities.

The milestone payment is normally considered when the construction project has a large scale but consists of small activities. The subcontractor will receive their benefits at the end of each milestone, totalizing the full value at the end of the project.

When it comes to building a payment schedule, the most used tool is Microsoft Excel. Having features to match the industry standards for building a construction payment schedule template, the software provides various tools to give the user anything they might need to make the perfect payment schedule. Excel also provides an arsenal of options to personalize the document to what matters for the project.

When doing your construction project and building a template, it is crucial to know your main focus. This way, you will be able to create something clear and objective and have better communication at the construction site.

You can find many tips, along with some very useful templates at Microsoft’s official site. There you can find tips on tools that can make your contract look even more clear, resulting in a better understanding from the subcontractors and avoiding future doubts.

Another alternative for your construction payment schedule is using a ready template instead of creating one from scratch. There are lots of templates available online that you can download and open directly in Microsoft Excel.

Be sure to look at the templates and see which one fits your needs and will help you do the best payment schedule for your business. Remember that you can edit these files to have an even better layout of the categories that truly matter for your construction project and for your cash flow to be as regular and safe as possible.

Here are some templates that you can use in order to make the perfect construction payment schedule, no matter if it’s for progress payment or any payment schedule:

You can buy your Microsoft Excel activation key at RoyalCDKeys for a considerably lower price when compared to Microsoft's official website. This way, you can still have all the features and save money at the same time.

Now you have everything you need to make the perfect construction payment schedule for your business. No matter if you’re the construction manager or the property owner, drawing schedules can optimize every aspect of the project.