To help with cash flow, one should use what?

Using progress payments is a strategic approach to managing cash flow in construction projects. Progress payments allow contractors to receive payments at various stages of the project, rather than waiting until the entire job is completed. This method helps ensure that there is a steady influx of cash to cover ongoing expenses, such as labor, materials, and overhead costs associated with the project.

When progress payments are structured correctly, they correspond to the completion of defined milestones or tasks outlined in the contract. This not only supports continuous cash flow but also keeps the project on schedule, as it incentivizes the contractor to meet deadlines in order to receive payment. Furthermore, clients appreciate progress payments because they can see the work being completed and make payments accordingly, which fosters a stronger business relationship.

In contrast, other options like a contract, lawyer, or accountant, while important in their own rights, do not directly address cash flow concerns as effectively as progress payments do. A contract outlines the terms of the project but does not influence when cash is received. A lawyer can assist with legal matters and ensure compliance but does not provide financial management services. Similarly, while an accountant can help manage finances, they do not provide direct cash flow strategies like progress payments can.