You finished the job three weeks ago. The client said the check was "in the mail." You've texted twice, called once, and you're starting to feel like a bill collector instead of a contractor. This is one of the most frustrating parts of the business — but it's almost entirely preventable.
Get a Deposit Before You Start
This is non-negotiable. A deposit does two things: it covers your upfront material costs, and it proves the client is serious. If someone won't put money down, that's a red flag about their willingness to pay the final bill.
- Standard deposit: 50% for jobs under $5,000
- Larger jobs: 25-33% deposit, with milestone payments throughout
- Always collect the deposit before ordering materials or scheduling the work
- Never finance a client's project with your own money
Use a Written Agreement on Every Job
It doesn't have to be a 10-page contract written by a lawyer. A simple written agreement that both sides sign — even electronically — covers you. At minimum, it should include:
- Scope of work (what you're doing and what you're not)
- Total price and what's included
- Payment schedule (deposit, milestones, final payment)
- Payment due date ('due upon completion' or 'net 7 days')
- What happens if payment is late (late fees, work stoppage)
- Change order process for additional work
Structure Your Payment Schedule
For anything beyond a half-day job, break payments into milestones. This keeps cash flowing and limits your exposure if a client stops paying.
Small Jobs (Under $2,000)
- 50% deposit to start
- 50% on completion
Medium Jobs ($2,000 — $10,000)
- 33% deposit to start
- 33% at midpoint milestone
- 34% on completion
Large Jobs (Over $10,000)
- 25% deposit
- 25% at each of two milestones
- 25% on completion (retain 10% for punch list if needed)
Send the Invoice Immediately
Don't wait. The moment the job is done — or the milestone is hit — send the invoice that same day. The longer you wait, the less urgency the client feels. Same-day invoicing also signals professionalism and sets the expectation that you take payment seriously.
Know Your Lien Rights
Every state has mechanics' lien laws that protect contractors who don't get paid. You don't have to file one often, but knowing you can is powerful. And in most states, you need to follow specific steps to preserve your right to file one.
- Send a preliminary notice at the start of every job (required in many states)
- Keep records of all work performed and materials delivered
- Know your state's lien filing deadline (usually 60-90 days after completion)
- Mention lien rights in your contract — it's not a threat, it's standard business practice
When Payment Is Late
Have a system instead of winging it. Following a consistent process takes the emotion out of it and gets you paid faster.
- Day 1 past due: Friendly reminder text or email ('Just following up on invoice #123')
- Day 7: Phone call — direct and polite ('I wanted to check on the status of payment')
- Day 14: Written notice with late fee applied (if stated in your agreement)
- Day 30+: Final demand letter referencing lien rights and potential legal action
Prevention Is Easier Than Collection
The contractors who rarely chase payments all do the same things: they collect deposits, use written agreements, bill at milestones, invoice immediately, and make it easy to pay. None of this is complicated — it just takes discipline. Set up the system once and follow it every time.