Billing, Draws & Getting Paid Faster

Slow billing is self-inflicted cash starvation. Tighten this and your cash improves immediately.

Get paid faster

• Bill on time, every period — never skip or delay a pay application.
• Build an accurate schedule of values; front-load legitimate early costs (mobilization).
• Submit complete, correct pay apps so they aren't rejected and delayed.
• Follow up on receivables — and know your prompt-payment rights.

Going Deeper (Intermediate)

Cash flow starts with billing fully and on time, every cycle. The fundamentals:

• Bill for everything earned — underbilling is lending the owner your cash for free.
• Submit accurate, complete pay apps with required backup (lien waivers, certified payroll) so nothing bounces the draw.
• Follow up on AR immediately — a draw not chased is a draw not paid.

Advanced / Pro-Level

Tightening collections:

• Draw schedules & billing cutoffs — know the owner's cutoff date and hit it; miss it and you wait a full extra month.
• AR aging — review weekly; anything past terms gets a call, then escalation.
• Leverage your rights — prompt-payment statutes (interest on late payment) and lien/bond claim deadlines are real leverage; preserve them.
• Stored-materials and front-loaded SOVs pull cash forward.
• Make collections a routine system, not an awkward afterthought — the squeaky, organized contractor gets paid first.

Practice Challenge

Your pay app is due to the owner by the 25th but you submit on the 28th. What's the likely cash consequence? (Answer: you miss this draw cycle and wait roughly a full extra month to be paid for that work — billing discipline directly drives cash.)

In Practice

A contractor skips a month's billing because they're 'too busy' — and starves their own cash flow. Billing accurately and on time every period is the easiest cash fix there is.

Common Mistakes to Avoid

• Billing late or skipping a period
• Submitting incomplete pay apps that get rejected
• Not following up on receivables

Takeaway: Bill accurately, on time, every period — sloppy billing is self-inflicted cash starvation.

Educational content — not legal, financial, or accounting advice. Run your numbers with your CPA.